When a potential new client hesitates after hearing your fee, ask if he has an employer-based health savings account. You may end up keeping a client that was ready to hang up. But first, you’ll need to know something about these accounts.
As employers look for new ways to share the burden of rising health costs with their employees, more clients have employer-based health savings accounts. They may be Health Savings Account (HSA), Medical Savings Account (MSA), or Health Reimbursement Arrangement (HRA). Each of these allow employees to set aside pre-tax dollars from their income for future medical expenses. Contributions are made by the client and/or employer, depending on the account. Funds can be used for deductibles, copayments, and qualified health expenses that aren’t covered by insurance, such as those provided by out-of-network providers. A Flexible Spending Account (FSA) may allow for reimbursement of healthcare AND childcare/dependent care expenses.
How does this work? Let’s say in December a client estimates he will pay $2000 in the next year for health expenses (or health and dependent care expenses, with an FSA). He’d have his employer deduct this amount from his paychecks over the course of that year, and deposit it into his account. Your client would pay you, and ask for an invoice so he can be reimbursed from his account. Or he may have access to his account via special checks or a special credit card.
You may need to register as a healthcare provider with your credit card processing company, or it may be processed as you would a normal credit card.
Can a client submit an invoice for a missed session fee? Nope. Missed session fees are not eligible for reimbursement.
How does this save me or my employer money? These accounts benefit employees in terms of direct financial savings. They can save 30% or more on eligible medical or child care costs since the deductions are taken pre-tax. Employers also save roughly 8% on payroll taxes and gain a competitive hiring tool.
Marketing Tip: On your website and marketing materials, remind potential clients your therapy is covered by health savings accounts.
The Take Away: Encourage your client to look into this possible way of affording therapy.
Adapted from a portion of “Navigating the Insurance Maze: The Therapist’s Complete Guide to Working With Insurance — And Whether You Should”. To order your copy, click here.