Is sleep training covered by Insurance, FSA or HSA?
Flexible Spending Account (FSA) and Health Savings Account (HSA) Reimbursement for Sleep Training Services is here!
Hallelujah! Sleep training services are even more accessible to parents!
Understanding FSA/HSA Benefits
A Flexible Spending Account (FSA) is a tax-advantaged account that allows you to set aside pre-tax dollars to cover eligible medical expenses. While you may associate FSAs with traditional healthcare services, the good news is that certain “non-traditional” offerings, like my sleep coaching, may also be eligible for reimbursement.
A Health Savings Account (HSA) is a tax-advantaged medical savings account available to taxpayers in the United States who are enrolled in a high-deductible health plan. The funds contributed to an account are not subject to federal income tax at the time of deposit.
Here is what you need to know in 3 steps:
1. Claim medical necessity:
The key to FSA reimbursement lies in establishing the medical necessity of my services. If you believe that my baby sleep consulting services address a specific medical need or concern related to your child's sleep, it could be eligible.
- Reach out to your FSA administrator or your human resources department to inquire about the eligibility of baby sleep consulting services. They can provide insights into your specific plan's requirements.
- Speak to your pediatrician and request a “letter of medical necessity.”
2. Find the right coding for services: **
Some FSA plans may require specific medical codes for reimbursement. While baby sleep consultants may not use traditional medical codes, it's essential to communicate with your FSA administrator to understand any coding requirements or alternatives. Some options to explore are: “Newborn care” or “Health institute fee”
3. Document everything:
With FSA, you may have to pre-pay for your sleep training program, and submit a receipt for reimbursement. So just ask me for a receipt, and submit it to your FSA administrator.
If you have an HSA debit card, you can simply use your HSA debit card to pay for sleep training services.
Keep detailed records of our interactions, including receipts and invoices. If required by your FSA plan, be prepared to provide clear documentation outlining the medical necessity of my services.
** According to FSA STORE, “Health institutes go by many names including clinics, retreats, workshops, institutes, campuses, etc. but always are classified by the services they offer which do not typically diagnose, treat or alleviate a medical condition or disease. If there is a service that does directly treat, diagnose or alleviate a medical condition or disease, and it is prescribed, then it may be eligible for reimbursement with a consumer-directed healthcare plan and with appropriate documentation. It is possible, though unlikely, that this service would be prescribed to be performed at a health institute and covered by health institute fees (Internal Revenue Service).”
Under the health institute fees, sleep consulting can be covered with a letter of medical necessity (LMN). This can be obtained from a medical professional. But beforehand, make sure to check with your FSA administrator and make sure it’s required and that the fee and expense will be covered.
I am thrilled at the possibility of my services being more accessible to you through FSA reimbursement. Your child's sleep is a vital component of their overall health, and I'm here to support you every step of the way.
If you have any questions or need additional information, feel free to reach out.
Wishing you and your family restful nights and cheerful mornings.
About me
Hi, I’m Sarah. As a mother of two, I quickly learned that sleep is influenced by a variety of factors and there is not one RIGHT way to help baby sleep. Both of my daughters had unique temperaments and struggles, and I was humbled to learn that newborns are complicated and parenting in a world of information overload is stressful.
Now, I partner with parents to create a tailored plan using an evidence-based and multidimensional approach to sleep. I take great care in co-creating a plan that takes into account all of the factors that makes each family unique, including parenting philosophies, infant temperament and readiness, age, weight gain, health and development and much more. To date, I have helped over 2,000 families.
If you're ready to teach baby to sleep independently and feel like someone’s got your hand through all of this, contact me.
Tell me more about what you’re facing and I can answer your questions about my approach to working with families and offer a personalized plan that gives you the support you and your family deserve. 🫶
