How an HSA Can Support Your Employees’ Mental Health

New survey results published during Mental Health Awareness Month indicate that a variety of financial and health factors are the top drivers influencing mental health in this country. Money was the top factor at 52%, with personal health and the health of family/friends also ranking among the top four.

There are a variety of ways you can promote mental health in the office. One way is to provide benefits that support your employees’ needs. For example, employees can use their health savings account (HSA) to improve their financial wellness and save money on a variety of mental health-related expenses.

 

Counseling
Mental counseling may qualify as an HSA-eligible expense if the counseling is as a result of a diagnosed medical condition. That means employees may need to first seek a diagnosis from a doctor and get diagnosed in order to use their HSA funds on counseling. Marriage counseling, career counseling, life coaching and parenting counseling do not qualify as an HSA expense.

 

Psychoanalysis
Psychoanalysis is defined by Simply Psychology as “a set of psychological theories and therapeutic methods which have their origin in the work and theories of Sigmund Freud.” It’s commonly used to treat anxiety, phobias, panic attacks and a variety of other mental health needs. Psychoanalysis’ will qualify for HSA funds if it’s being provided for medical treatment and not just to benefit an individual’s general health.

 

Therapy or Psychological Care
Your employees could be increasingly reaching out for therapy or psychological care for any number of reasons. Like with psychoanalysis, therapy or psychological care qualifies for HSA dollars only if provided for medical care and not for the general improvement of mental health, stress relief or personal enjoyment.

 

Service Animal
Animals play a critical role in mental health. Common examples include psychiatric service dogs and emotional support animals. If an individual can show that he or she is using a service animal primarily for medical care to alleviate a mental disease or illness, then expenses for buying, training and maintaining a service animal may be eligible for HSA funds if the expenses would not have been paid for if not for the defect or illness.

 

Prescription/OTC Medications
Employees with a mental illness may depend on antidepressants, anti-anxiety drugs and mood stabilizers. A variety of over-the-counter drugs and prescription medications are available for purchase with HSA funds.

 

Acupuncture
In some countries and cultures, acupuncture is counted on as a form of treatment for a variety of mental health issues. Fortunately, acupuncture is also an HSA eligible expense when used for medical care.

 

Sleep Deprivation Treatment
Stress can lead to a lack of sleep, which can have a profound impact on employees’ mental wellness. One study found that chronic sleep problems affected 50 to 80 percent of patients in a typical psychiatric practice. Sleep deprivation treatment may help alleviate mental health symptoms and is HSA eligible.

 

Telemedicine Visits
At the start of the pandemic, the use of telemedicine skyrocketed by more than 1,000% in March 2020 and 4,000% in April 2020, according to one study. Like many changes during the pandemic, its popularity could last even after the pandemic is behind us. HSAs do cover medical practitioners’ fees for telemedicine.

 

Don’t Forget About Investing!
With money being the number one factor negatively affecting mental health, HSAs are a great tool for investing and retirement planning. In addition to investment capability, all HSA funds carry over from year to year, so participants can use these accounts to build a balance for their long-term healthcare needs.

 

The information in this blog post is for educational purposes only. It is not investment, legal or tax advice. For legal or tax advice, you should consult your own counsel. To stay up to date on benefits trends and insights, subscribe to our blog.