How to Use Your HSA or FSA for Therapy: What’s Covered in NYC and How It Works
/HSA/FSA for Therapy: What’s Eligible and How to Use It
At Downtown Psychological Services, we understand that cost is often one of the biggest barriers to starting therapy. Many clients are surprised to learn that they can use their HSA (Health Savings Account) or FSA (Flexible Spending Account) to help cover the cost of mental health treatment.
If you’re exploring therapy in NYC and wondering how to make it financially manageable, here’s what you need to know.
Can You Use an HSA or FSA for Therapy?
Yes, psychotherapy at Downtown Psychological Services is considered an eligible medical expense as it is being used to treat a diagnosed mental health condition such as:
Anxiety disorders
Depression
*PTSD and trauma-related disorders * OCD
Eating disorders
Relationship distress
Other clinically significant mental health concerns
Both HSAs and FSAs are designed to cover qualified healthcare expenses, and psychotherapy typically qualifies.
What Is the Difference Between an HSA and an FSA?
Understanding the distinction can help you plan effectively:
Health Savings Account (HSA)
*Available if you have a high-deductible health plan (HDHP) * Funds roll over year to year
You own the account, even if you change jobs
Can be used for therapy sessions, psychiatric services, and other eligible healthcare expenses
Flexible Spending Account (FSA)
Offered through employers
Funds typically must be used within the plan year
May have a grace period depending on your employer
Can be used for therapy and mental health treatment
If you’re unsure which type you have, your HR department or benefits portal can clarify.
How to Use Your HSA or FSA for Therapy
Using your HSA or FSA for therapy at Downtown Psychological Services is straightforward:
1. Pay for Your Session
You may pay for sessions directly using your HSA/FSA debit card, or you can pay out of pocket and submit for reimbursement.
2. Request Documentation
We provide detailed receipts (often called “superbills”) that include:
Provider information
Date of service
CPT billing codes
Diagnosis codes (when required for reimbursement)
3. Submit for Reimbursement
You can upload the documentation through your HSA/FSA portal for reimbursement if you did not pay directly from your account.
What About Out-of-Network Benefits?
Even if we are not in-network with your insurance plan, you may still have out-of-network reimbursement benefits. At Downtown Psychological Services, our billing team will go over your out of network coverage with you prior to your first appointment so you will know what to expect. With certain insurance plans, we will submit the paperwork on your behalf and with others, we will supply you with the adequate documentation to submit for yourself.
Many clients in NYC combine out-of-network reimbursement with HSA or FSA funds.
This can significantly reduce the overall cost of therapy.
What Is Typically Eligible?
Therapy services are generally eligible, including:
Individual psychotherapy
Anxiety treatment
Depression treatment
Virtual therapy sessions
However, coverage rules can vary slightly depending on your specific plan, so we recommend checking with your HSA/FSA administrator for confirmation.
Why This Matters
Mental health care is healthcare. Many people delay starting therapy because they assume it isn’t financially feasible. Understanding how to use your HSA or FSA can make therapy more accessible and sustainable.
At Downtown Psychological Services, we believe that transparency around fees and insurance options is part of ethical, client-centered care.
Questions About Using HSA/FSA for Therapy in NYC?
If you’re considering therapy and have questions about payment options, we’re here to help. Our team can walk you through:
Using your HSA or FSA
Submitting for out-of-network reimbursement
Understanding session fees
Planning for ongoing care
To learn more, and make the most of your healthcare benefits, fill out this form to schedule a free 10-15 minute call with a member of our intake team.
