Club Dues: HSA Eligibility

Club dues, such as those required for a health club/gym, may be eligible as long as it is required to treat a medical condition, and a Letter of Medical Necessity (LMN) is obtained for reimbursement through a flexible spending account (FSA), health savings account (HSA) or a health reimbursement arrangement (HRA). Club dues reimbursement is not eligible with a limited care flexible spending account (LCFSA) or a dependent care flexible spending account (DCFSA).

What are club dues?

Club dues, also commonly referred to as membership fees, are the initial and regular expenses that a club member will incur by maintaining their membership over time. For these fees to be considered as legitimate medical expenses, the activities performed at these clubs, such as gyms and health clubs, must be used to assist an individual in preventing or treating a specific medical condition.

Are gym memberships eligible for reimbursement?

According to IRS Publication 502, qualified expenses are those that are indicated in an individual's consumer-directed healthcare plan that would typically qualify for deduction as medical and dental expenses. As such, these expenditures must be used to help prevent or alleviate a specific medical condition, while others may have a conditional application in the medical sphere such as gym memberships.

Gym memberships and health clubs are considered by the IRS to be activities for "general health," as an expense that the account holder doesn't necessarily need to incur to treat a specific medical condition. However, in some rare cases, gym memberships and health club dues could qualify if the primary purpose of the membership is to treat, diagnose, mitigate, prevent or cure a disease or illness and if the membership would not have been purchased "but for" the disease or illness.

How do I obtain a Letter of Medical Necessity (LMN) for club dues?

A Letter of Medical Necessity (LMN) for club dues is necessary for reimbursement with most benefits providers to ensure that it is necessary for the treatment of a medical condition. This letter must outline how an account holder's medical condition necessitates the payment of club dues, how the treatment will be used to alleviate the issue and how long the treatment will last.

Eligibility Table

Flexible Spending Account (FSA) Limited Care FSA Dependent Care FSA Health Savings Account (HSA) Health Reimbursement Account (HRA)

Eligible

Eligible with Rx

Eligible with LMN

Not Eligible

Specifically Not Covered

Health club dues for promotion of general health, and not for the treatment of a medical condition are not eligible.

 


AZ-PROD-WEB04 8/20/2018 3:35:07 AM