Did you know you can pay for Cancer Sherpa’s or any cancer patient advocate’s services with the pre-tax funds in your HSA (Health Savings Account) or FSA (Flexible Spending Account) accounts? According to the IRS, as long as the services are primarily for your medical cancer care, specifically helping you understand your diagnosis and treatment options, coordinate care, or communicate with your healthcare team, they can be paid for out of your HSA or FSA account.
Of course, as with any tax deduction or use of pre-tax dollars, what qualifies as a “medical deduction” or is defined as a “medical expense” is not only complex and confusing for cancer patients, but when it comes to cancer support services is still a gray area for the IRS itself. However, the IRS has provided some guidelines for use of HSA and FSA accounts that ensure if you choose to use them to pay for a cancer patient advocate, you will not be penalized.
If you use HSA funds to pay your cancer patient advocate, the IRS states you should:
- Keep all receipts and documentation for services that are medically necessary for
- Care coordination
- Treatment decision-making
- Medical system navigation
- Get a Letter of Medical Necessity from your oncologist, oncological surgeon, or other licensed specialist involved in your care for non-obvious services (Note: this is recommended, not required)
- Check with your specific HSA provider — rules can vary
If you use FSA funds to pay your cancer patient advocate, the IRS states you should:
- Keep all receipts and documentation for services that are medically necessary for
- Care coordination
- Treatment decision-making
- Get a Letter of Medical Necessity from your oncologist, oncological surgeon, or other licensed specialists involved in your care for non-obvious services (Note: this is required)
- Check with your specific FSA provider — rules can vary
Ultimately, HSA accounts are more flexible when it comes to using pre-tax funds to pay for a cancer patient advocate’s services, but with the right documentation by your advocate and healthcare provider, both HSA and FSA funds are great options. If you need assistance in reviewing the specific terms of your HSA or FSA account, please do not hesitate to contact Cancer Sherpa as we would be happy to help.