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 from a physician 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, a doctor can issue a Letter of Medical Necessity (LMN), that will advise a benefits administrator to cover club dues or gym memberships to help treat or prevent a medical condition. Additionally, any additional costs for special gym classes and other instruction as prescribed by a doctor may be considered eligible with the proper documentation.

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

A Letter of Medical Necessity (LMN) from a doctor 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. If the treatment plan exceeds the current plan year, another LMN will have to be provided to the benefits administrator to cover the duration of the treatment.

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-WEB02 11/18/2017 7:36:41 PM