There's no doubt that if you're offering medical or wellness pedicures, you should be accepting HSA/FSA benefits. I only wish these payment options were available when I was actively providing pedicure services, but unfortunately, they weren't. If you're in a position to accept them now, here’s how you can ease the financial burden for clients seeking your services.
What is HSA/FSA Benefits?
HSA (Health Savings Account) and FSA (Flexible Spending Account) are tax-advantaged savings accounts that allow individuals to set aside pre-tax money for qualifying medical expenses. Here's a breakdown of each:
HSA (Health Savings Account):
- Available to individuals enrolled in a high-deductible health plan (HDHP).
- Contributions, earnings, and withdrawals for eligible medical expenses are tax-free.
- Funds roll over year-to-year if not spent, and the account is owned by the individual.
- Can be used for a wide range of medical services, including certain types of wellness care.
FSA (Flexible Spending Account):
- Usually provided through an employer’s health plan.
- Allows employees to contribute pre-tax funds to pay for eligible healthcare expenses.
- Typically, funds must be used within the plan year or a grace period, though some plans allow a small amount to roll over.
- Can cover medical, dental, vision, and certain preventive care services.
Does providing Medical Pedicures allow you to accept these payments?
For pedicure services that qualify as medical or wellness treatments (such as medical pedicures), clients can often use HSA or FSA funds to cover the cost, reducing their out-of-pocket expenses. Keep in mind that it's best to have the name "Medical Pedicure" or "Diabetic Nail Trimming" as a service on the receipt that will be going to your client. Also, make sure that there are no services such as manicures or enhancements on the receipt as those are not covered.
How do I make the next step to accept HSA/FSA benefits?
To accept HSA/FSA benefits as a business providing medical or wellness pedicures, you’ll need to follow a few steps to ensure compliance and make it easy for clients to use these accounts. Here’s how:
Ensure Your Services Qualify
- Medical pedicures that focus on foot health or podiatry-related issues may qualify, but cosmetic services typically do not.
- Confirm that your services meet the requirements under IRS guidelines for medical expenses.
Obtain a Healthcare Provider Identification Number (NPI)
- An NPI (National Provider Identifier) is often required for businesses offering medical services that want to accept HSA/FSA benefits.
- You can apply for an NPI through the National Plan and Provider Enumeration System (NPPES) website.
Check with Payment Processors
- Some payment processors, such as Square or Stripe, can process HSA/FSA payments. They may require you to designate specific services as medical to ensure proper coding.
- Ensure the processor you choose is equipped to handle HSA/FSA debit cards.
Accept HSA/FSA Debit Cards
- HSA/FSA accounts often come with debit cards that clients can use directly to pay for qualified services.
- Ensure your payment system accepts these cards, as they work like any other debit or credit card.
Provide Detailed Receipts
- Some HSA/FSA providers require detailed receipts or invoices for reimbursement.
- Your receipts should clearly list the services provided and show that they qualify as medical or wellness-related care. It’s important to include the NPI number if needed.
Communicate with Clients
- Let your clients know that you accept HSA/FSA benefits for eligible services.
- Provide guidance on how they can use their accounts, what qualifies as an eligible expense, and any documentation they may need for reimbursement.
By ensuring your services qualify and setting up the necessary systems, you can help ease the financial burden on your clients by allowing them to use pre-tax HSA/FSA funds for medical pedicures.
Are you connected with a physician?
Being connected with a physician should be essential when offering HSA/FSA so that they take you seriously when providing medical pedicures. Become a Medical Pedicurist today and I will show you how to incorporate a physician and add you in the supportive NuFeet Network.
Having an NPI number not only helps with accepting HSA/FSA benefits but also provides credibility as a provider of medical services.
By following these steps, you'll be able to offer these valuable services at your establishment. Unfortunately, large insurance companies have yet to recognize medical pedicures as a necessity, but rest assured, I am actively working to change that. This shift will open the door for you to offer even more essential care to those who truly need your services and cannot afford it.
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