How to Accept HSA/FSA Payments at Your Gym: A Complete Guide
Health Savings Accounts (HSA) and Flexible Spending Accounts (FSA) allow clients to pay for qualified wellness services using pre-tax dollars. As a gym owner, accepting HSA/FSA payments can help attract new clients, increase retention, and create an additional revenue stream.
Gym accepting HSA FSA payments
What Are HSA and FSA Accounts?
HSA (Health Savings Account)
HSAs are tax-advantaged accounts that individuals with high-deductible health plans (HDHPs) use to pay for medical expenses. Funds roll over year to year, allowing long-term savings.
Learn more about HSAs from Healthcare.gov
FSA (Flexible Spending Account)
FSAs allow employees to set aside pre-tax dollars for medical expenses. Unlike HSAs, FSA funds expire annually, encouraging account holders to use them before year-end.
Check the full list of FSA-eligible expenses
How Your Gym Can Accept HSA/FSA Payments
1. Determine Which Services Qualify
The IRS requires a doctor’s prescription for fitness services to qualify as a medical necessity.
- Stretch therapy for mobility and flexibility
- Personal training for rehabilitation or weight management
- Gym memberships prescribed for medical reasons
IRS Guidelines on Medical Expenses
2. Work with a Payment Processor That Accepts HSA/FSA
HSA/FSA cards require special processing. Consider using:
3. Require a Doctor’s Letter of Medical Necessity
Most HSA/FSA transactions require a Letter of Medical Necessity (LMN) from a physician verifying the medical need for your gym service.
4. Educate Your Clients
Many clients don’t realize they can use HSA/FSA funds for wellness services.
- Promote it on your website and social media
- Train your staff to explain the process
- Use marketing emails and flyers in your gym
HSA Store: A Consumer Resource
Challenges When Setting Up HSA/FSA Payments
1. Complex Eligibility Rules
Fitness services must be prescribed by a doctor and meet specific guidelines.
2. HSA/FSA Administrator Rejections
Ensure your payment processor is correctly coded as a healthcare provider.
3. Low Client Awareness
Many clients are unaware of HSA/FSA eligibility for gym services. Market effectively to educate them.
Benefits of Accepting HSA/FSA Payments
- Attract more clients
- Increase revenue from wellness services
- Position your gym as a healthcare-friendly business
Check IHRSA’s fitness business growth resources
Final Thoughts: Should Your Gym Accept HSA/FSA Payments?
Absolutely! Adding HSA/FSA payment options can help increase revenue, attract new clients, and enhance your gym’s reputation.
🚀 Next Steps:
- Check if your services qualify
- Partner with an HSA/FSA-friendly payment processor
- Educate clients and promote the option
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