Half Way House: FSA Eligibility

Half Way House: requires a Letter of Medical Necessity (LMN) to be eligible with a Flexible Savings Account (FSA)
The cost of a half way house necessary for treatment of an addiction or other medical treatment may be eligible with a Letter of Medical Necessity (LMN) with a flexible spending account (FSA), health savings account (HSA) or a health reimbursement arrangement (HRA). Half way house reimbursement is not eligible with a limited-purpose flexible spending account (LPFSA) or a dependent care flexible spending account (DCFSA).

What is a half way house?

A half way house, also known as a sober living house, are transitional living facilities that are designed to provide a safe, welcoming environment for individuals who are overcoming addictions to drugs, alcohol and other substances. Individuals who enter a half way house come to these facilities for a variety of reasons, be it as a result of a recent court order, transitioning from a treatment center, prison or living homeless who need assistance in beginning the recovery process. However, only costs related to treating a condtion like addiction are eligible. In most cases, half way houses will require residents to pass drug screening tests or breathalyzers to ensure that they are committed to their recovery and not a risk of compromising other residents' recoveries (HalfwayHouse.com).

Half way houses are typically run by counselors who have professional substance abuse training, or individuals who have overcome their respective addictions or were once halfway house residents themselves. The facilities usually house both men and women, and they are located nearby to Alcoholics Anonymous or Narcotics Anonymous meetings to ensure that half way house residents can gain access to hands-on treatment while living in a communal setting of individuals who are working toward similar goals.

How do I obtain a Letter of Medical Necessity for a half way house?

Half way houses usually charge monthly rent payments for its residents, but these expenses would not be reimbursable- only the amounts related to addiction treatment would be eligible for reimbursement through a consumer directed healthcare account with  Letter of Medical Necessity (LMN) from a medical professional.