Did you know that one of the most significant barriers to getting help for addiction is cost? The pain, emotional toll, and even societal pressures to recover can’t hold a candle to the perception that one simply can’t afford recovery.
Stats show that less than 1% of Americans who need treatment seek it out and receive it – with cost being a top reason why.
But here’s what many don’t realize: if you have a Health Savings Account (HSA) or Flexible Spending Account (FSA), you may have funds already at your disposal to invest in your recovery.
In 2025, the IRS explicitly recognizes addiction treatment as a “qualified medical expense”. What does that mean? You may be eligible to use pre-tax dollars from your HSA or FSA to pay for life-changing treatments such as detox, inpatient care, outpatient programs, therapy, and even medications associated with recovery.
Let’s take a look at the specifics and what you can do to take advantage of this pre-tax opportunity to get the help you desire.
What Are HSA and FSA Accounts?
First, let’s take a look at some definitions to understand what each account is and how it may help you on the path to recovery.
While both an HSA and an FSA are tax-advantaged ways to pay for medical expenses, each works differently.
What is a Health Savings Account?
Think of an HSA as a medical savings account that rolls over from year to year. Individuals contribute pre-tax dollars to the account each pay period, and the money grows tax-free in a protected account.
You can then access and use the funds for qualified medical expenses. About 17% of US families with employer-sponsored insurance currently have an HSA.
What is a Flexible Spending Account?
An FSA works in a similar format to an HSA, but FSAs operate on a “use-it-or-lose-it” basis. This means that you must spend the funds within the plan year or risk forfeiting them.
Both accounts offer the same tax advantage to individuals, in that every dollar you spend from these accounts is a dollar you don’t pay income tax on.
The tax savings can make a significant difference, as families with HSAs typically incur around $2,700-$ 3,000 in out-of-pocket medical expenses annually. Using pre-tax dollars for these expenses can potentially save you hundreds or even thousands in taxes each year.
Can You Use HSA or FSA Funds for Rehab?
Many assume that seeking rehabilitation or detox services for addiction isn’t covered by their HSA or FSA. Some don’t even realize that they’re saving those funds in the first place!
The good news is that you can use these funds for rehab.
According to current IRS guidance:
“The cost of a program to treat a drug-related substance use disorder is a medical expense that can be paid or reimbursed by an HSA, FSA, Archer MSA, or HRA.”
Addiction treatment qualifies under this definition because substance use disorder is currently recognized as a medical condition that often requires individuals to seek specialized medical help.
Just as you would seek a cardiologist for a heart condition or an orthodontist for life-impacting dental needs, you typically need to work with a trained medical professional to overcome an addiction.
It’s important to note that medical coverage actually extends to various levels of care. You can opt to use your funds to pay for medical detox or long-term residential treatment options, as well as individual therapy sessions.
As long as it’s medically necessary and addiction treatment is provided by licensed professionals, it’s likely to be covered. The key is that treatment must be for a diagnosed substance use disorder – not simply to pay for preventive or educational programs.
What Rehab Costs May Be Eligible?
Knowing what types of costs are covered by HSAs and FSAs can help you plan how best to use your benefits. Here are some of the key expenses you can use these funds on:
| Medical Detox | All medical supervision, medications, and monitoring during detoxification |
| Inpatient/Residential Care | Room, board, meals, and all treatment services at the facility |
| Outpatient Programs | IOP (Intensive Outpatient) and standard outpatient treatment sessions |
| Individual & Group Therapy | Counseling sessions, including CBT, DBT, and other evidence-based therapies |
| Medication-Assisted Treatment | Prescription medications like buprenorphine, naltrexone, or methadone |
| Psychiatric Services | Mental health evaluations and ongoing psychiatric care |
| Lab Tests & Assessments | Drug testing, medical evaluations, and psychological assessments |
| Transportation (Limited) | Mileage to/from treatment when medically necessary, with documentation |
What Costs aren’t Typically Covered by HSA or FSA Funds?
There are some costs that FSAs and HSAs don’t cover, such as:
- Housing costs outside of inpatient treatment
- General transportation that isn’t directly related to medical care
- Educational programs without a treatment component
- Nutritional supplements or gym memberships
As always, you’ll want to work with your healthcare provider and insurance company to determine what is and isn’t covered by your accounts.
If you try to use HSA or FSA funds for non-qualified expenses, you could end up owing taxes plus a penalty. When in doubt, always seek a written confirmation from your treatment provider that services qualify as medical treatment for substance use disorder.
How to Use HSA or FSA Funds for Rehab
Using your HSA or FSA is simple, but you’ll want to maintain proper documentation at every step to protect yourself and your funds.
Most accounts come with debit cards that are tied to the account, allowing you to pay for treatments as you would with other payment methods.
Some treatment centers may not accept HSA/FSA cards directly, but you may be able to pay out of pocket and then submit documentation for reimbursement from your account.
Remember to keep all receipts, invoices, and documentation that show the medical nature of the services. You may need to provide proof of treatment to access your funds.
What Other Financing Options Can You Use To Pay For Rehab?
HSAs and FSAs are only part of a much larger financial toolkit when it comes to your health and wellness. And in a situation as crucial as addiction recovery, you’ll want to know all of the options available.
When funds aren’t available through FSAs and HSAs, you may find that treatment centers offer sliding scale fees based on income. Some also offer payment plans that can help spread the costs over months or years.
Some facilities also work with third-party medical financing companies that can offer low to no-interest loans that are designed to pay for healthcare expenses.
Don’t forget about tax deductions! Most medical expenses that exceed 7.5% of your adjusted gross income can be deducted when itemizing – a great way to seek help while managing your finances.
How United Recovery Project Can Help
Here at United Recovery Project, we know that cost is a major barrier for many seeking help. That’s why we’re here to help clients navigate all aspects of treatment finances, including how to use HSA and FSA funds to pay for rehab.
As part of our services, we provide detailed invoices and documentation specifically formatted for HSA/FSA reimbursement, ensuring that your benefits are accessible without issue.
Plus, our financial counselors can review your coverage options and help coordinate benefits if you’re combining HSA/FSA funds with insurance coverage.
Want to learn more? Contact United Recovery Project today to explore the options available.e You may find that recovery is more affordable than you think!
Our team is here to help you understand your benefits and start your journey to recovery.
Research:
- https://hsastore.com/learning-center/articles/learn-hsa-substance-abuse
- https://americanaddictioncenters.org/rehab-guide/tax-deductible
- https://pmc.ncbi.nlm.nih.gov/articles/PMC11415789/
- https://www.irs.gov/individuals/frequently-asked-questions-about-medical-expenses-related-to-nutrition-wellness-and-general-health
- https://www.healthcare.gov/have-job-based-coverage/flexible-spending-accounts/
- https://www.irs.gov/publications/p969
