Health savings accounts allow you to set a deductible amount to pay for medical expenses that are not covered by your health insurance. These include your deductible and other medical expenses such as dental and glasses. But many do not understand that HSA can be used to pay for almost any kind of medical care if it relates to the treatment or prevention of a particular health condition.
Because money withdrawn from a health savings account to pay for medical expenses is not taxed, anyone with an HSA can send all alternative medical expenses through their HSA and receive a tax write-off. This may include biofeedback, naturopathy, ayurvedic medicine, aromatherapy, magnetic healing, reflexology, and the list goes on.
People who use additional methods of treatment often take great care of their health, and more often turn to traditional doctors. Therefore, it does not make sense for them to pay a high premium for a traditional health insurance plan with a surcharge, especially when their medical procedures are not covered in any way. Instead, many opt for a low-cost, high-deductible, low-cost tax plan.
Alternative treatments
Many hospitals offer additional procedures. The Memorial Sloan-Keating Cancer Center website states that complementary therapies are used to "relieve stress, reduce pain and anxiety, manage symptoms, and enhance a sense of well-being."
Some group health insurance plans begin to cover additional additional expenses, but still very little are covered by these expenses in individual or family plans. Those that cover chiropractic restrictions are 12–20 visits per year, and some will cover a limited amount of acupuncture. But very little, if any hypnotherapy, Reiki, iridology or faith healers.
Why extra medicine
Conventional medicine used by most doctors is called allopathic medicine. The philosophy of this system is to treat diseases and injuries using opposing methods. For example, if you have a fever, you can take aspirin to go down; if your cholesterol is high, you can take a statin to reduce it; if you have heartburn, you can take an antacid. Thinking is mainly focused on eliminating the symptoms of the disease, and the main treatment procedures are operations and prescription drugs.
But there are other ways to look at things. Naturopathic medicine is based on the belief in the body's own healing properties, which can be enhanced through the use of certain foods, vitamins, herbs, or other "natural" procedures. Traditional Chinese Medicine (TCM) is based on the ancient Chinese theories about the balance of yin and yang. Ayurvedic medicine is based on the principles of movement, metabolism and structure.
Part of the growing use of additional therapies is a reaction to the costs, side effects, and philosophy of traditional allopathic medicine. Doctors receive most of their continuing education in the pharmaceutical industry, and they work in an environment where insurers and patients seek a quick fix. As a result, an average 60-year-old child takes 5 regular medicines, but there is little expectation that these drugs will ever cure the health problems for which they are used. Many consumers see this, and instead use other methods to try to get to the root of their illness.
What is considered to be “HSA Qualified Costs”,
Qualified medical expenses are partly defined in the IRS 502 publication and in various decisions of the federal court. There is no final list, but there are very few limitations if the procedure is intended to treat or prevent a particular health condition. For example, you could not use your HSA funds to pay for a relaxing massage for your personal pleasure. But if your doctor recommends a massage for certain medical reasons, it is considered a qualified expense. Yoga was not usually considered a qualified medical expense, but it would have been if it had been recommended as a physical therapy after some kind of accident.
Some may wonder why the government will give a tax deduction for someone to use some kind of crazy machine to vibrate energy to cure their cancer. But it should be so. No one but you can decide which treatment you will use for your illnesses. By providing people with the ability to manage their own health at their discretion, Health Savings Accounts encourage personal responsibility and help ease the health monopoly that traditional medicine has had over the past few decades.
