Helping Clients Afford Therapy: Ask about Health Savings Accounts
By Barbara Griswold, MFT (August 27, 2017)
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, such as a 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) allows 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 paycheck 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 by his account. Or he may have access to his account via special checks or credit card. You may need to register as a healthcare provider with your credit card processing company, or it may be processed as would a normal credit card. In other cases, the account is managed by a health plan, and participating providers submit a claim in the usual manner, and are paid in the usual manner, but the money comes from the client’s health savings account. Check with the client or his health plan in advance for instructions.
Can a client submit an invoice for a missed session fee? Nope. Missed session fees are not eligible for reimbursement.
Marketing Tip: On your website and marketing materials, remind potential clients your therapy is covered by health savings accounts.
For more on HSAs, click here for an easy-to-understand online resource
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.