A Letter of Medical Necessity is a document that details why a patient needs a specific product or treatment (like a wheelchair, vitamin supplement or swim therapy) for medical purposes so that a related expense can be paid with funds from an HSA (Health Savings Account) or FSA (Flexible Spending Account).

HSA and FSA accounts allow you to set aside pre-tax money you can use to pay for qualified medical expenses. But sometimes, these health care costs might not be automatically recognized as HSA- or FSA-eligible items that can be reimbursed with those funds. In such cases, a Letter of Medical Necessity provides documentation explaining why that particular expense is medically necessary, guaranteeing that it meets the criteria for reimbursement under HSA or FSA guidelines.

Health Savings Accounts (HSA) and Flexible Spending Accounts (FSA) allow you to save pre-tax dollars you can use to pay for eligible medical expenses. Fitness fees do not immediately qualify as eligible HSA/FSA expenses, but they do qualify if a provider recommends exercise to prevent or treat a medical condition.

To qualify those expenses for reimbursement with an HSA/FSA administrator, you need a Letter of Medical Necessity from a provider. Our partner, Dr. B, offers online consultations with licensed providers in every state—365 days a year.

A Dr. B medical consultation involves a short health assessment about conditions you are working to prevent or reverse. If eligible, you'll receive a Letter of Medical Necessity detailing how your condition qualifies exercise costs as HSA or FSA-eligible expenses. (The letter comes a few hours after you’ve completed payment.)

If you have an HSA or FSA account, you can submit this letter to reimburse future gym memberships, fitness classes, personal training or other exercise program fees. To ensure compliance, keep that Letter of Medical Necessity and applicable receipts available for the next three years.

HSA and FSA accounts consist of pre-tax funds, meaning you won’t pay income tax on money you put into those accounts and then use to pay for qualified healthcare expenses.

Using pre-tax money from an HSA or FSA account saves you money because you’re not paying tax on income you’ll then use to buy health-related items. This essentially increases your purchasing power for healthcare necessities. Individuals can contribute a maximum of $3,650 annually to their HSA. Most patients save between $1,000 and $2,000, depending on their state and tax bracket. (You can calculate your savings based on those parameters.)

1. Find your HSA/FSA administrator: If you’re not sure who your HSA or FSA administrator is, contact your employer's HR department.

2. Access your HSA/FSA administrator’s web service: Set up a new account or use your login details to access the online platform of your HSA or FSA administrator.

3. Locate their 'Reimbursement' or 'Claims' section: Find the dedicated area on your HSA/FSA's website that handles reimbursements or claims.

4. Submit your Letter of Medical Necessity and receipts: You’ll be required to upload a few essential documents, including your Letter of Medical Necessity from Dr. B and your monthly membership receipt to Collective Studios.

5. Wait for your claim to be processed: Once you've submitted all required documents, it may take a few days or weeks for your HSA/FSA administrator to review and process your claim. Once confirmed, they’ll deposit the reimbursement amount into the account you specified.

You may be able to use the same Letter of Medical Necessity for future exercise purchases if you file the claim within a 12-month period. For example, if you use your HSA funds for your Collective Studios monthly membership fees, you may be able to resubmit the same letter to renew your membership every month.

Your Letter of Medical Necessity is valid for 12 months and can be filed for reimbursement with fitness purchase receipts made on or after the letter's date. You can’t file it with purchases made before the letter was issued.

Accessing your membership receipts is easy! There are two ways you can access your membership receipts:

1. Our system emails you a receipt every time your monthly membership fees are processed.
   

2. Log in to your account on our website and head to the 'purchases' tab to view receipts for all your transactions at TCS!