Home Health Care: FSA Eligibility

Home Health Care: eligible with a Flexible Savings Account (FSA)
Home Health Care is eligible for reimbursement with a flexible spending account (FSA), health savings account (HSA) or a health reimbursement arrangement (HRA). Home Health Care is not eligible for reimbursement with a limited-purpose flexible spending account (LPFSA) or a dependent care flexible spending account (DCFSA).

Expenses are ineligible for any non-medical services (e.g., housecleaning, personal services).

What is home health care?

Home health care is an expansive term that refers to a wide range of potential medical services that are provided by a caregiver in an individual's home or another facility. Common home health care services include:

  • Nursing Care
  • Physical Therapy
  • Occupational Therapy
  • Medical Social Services
  • Speech Language Pathology
  • Home Health Aides

How does home health care work?

Home health care is meant to replicate the types of services an individual would receive in a hospital or other facility, but it is typically cheaper, far more convenient and still maintains the standard of care that a person would find in a traditional medical setting. The goal of home health care is to treat a specific illness or medical condition, which can help the individual get back on his/her feet, regain independence and return to the path to self-sufficiency (Medicare.gov).

In order to begin a plan of care with a home health care organization, a medical professional's order is needed to get underway, but patients will have the final decision in choosing the home health care organization that meets their needs. This is usually followed by an appointment with the home health care group who will assess the nature of the patient's medical issues and develop a plan of care to help the patient return to good health.

How is home health care reimbursement handled?

Because home health care can also include medical social services, such as those that help individuals handle day-to-day tasks, counseling and other needs related to their medical condition, the caregiver does not need to be a registered nurse. Home health care reimbursement with consumer spending accounts will typically cover the full cost of care that is related to the treatment of a specific medical condition. Additionally, transportation and lodging costs may be covered in certain cases.

However, home health care expenses are ineligible for any non-medical services (e.g. housecleaning, personal services). Patients should be sure to consult with the home health care organization and their benefits providers to understand the full scope of services being offered and what specific services will be reimbursed under their consumer spending accounts.