Can I use a Lifestyle Spending Account (LSA) for chiropractic care?

Are you curious about using a Lifestyle Spending Account (LSA) to cover chiropractic care expenses?

You're not alone. Many employees are exploring the flexibility and wellness benefits offered by LSAs.

In this article, we'll dive into what LSAs are and whether they can be used for chiropractic care in 2025.

What is a Lifestyle Spending Account (LSA)?

A Lifestyle Spending Account is an employer-funded benefit that provides you with a set amount of money to spend on eligible wellness expenses. Your employer determines the amount and the specific categories or expenses covered.

LSAs offer you flexibility and choice in how you allocate these funds to support your well-being. Instead of a one-size-fits-all approach, you can choose to spend the money on wellness activities or services that matter most to you.

Some common examples of LSA-eligible expenses include gym memberships, fitness classes, mental health apps, nutrition counseling, stress management programs, and financial wellness tools. The exact offerings vary by employer, but the goal is to support a holistic approach to employee well-being.

How do Lifestyle Spending Accounts work?

Lifestyle Spending Accounts (LSAs) are a flexible benefit that employers can offer to support your wellness goals. Here's how they typically work:

Your employer decides on the eligible expense categories for the LSA. These categories can cover a wide range of wellness activities and services, such as fitness classes, mental health apps, nutrition counseling, stress management programs, and even chiropractic care.

The employer also determines the funding amount for each employee's LSA. This amount can vary based on factors like your job level, tenure, or location.

Once your LSA is set up, you can start spending the funds on approved expenses. The exact process for using the funds may vary depending on your employer's LSA provider. Some providers offer a dedicated debit card for LSA expenses, while others require you to submit receipts for reimbursement.

It's important to note that LSAs are a taxable benefit. This means that your employer must include any reimbursed amounts in your gross income, and you'll pay taxes on those funds. However, the flexibility and choice offered by LSAs often outweigh the tax implications for many employees.

When using your LSA for chiropractic care, you'll want to check with your employer or LSA provider to confirm that this expense is eligible under your specific plan. Some employers may require a letter of medical necessity from your healthcare provider to approve the expense.

If chiropractic care is an eligible expense under your LSA, you can typically use your LSA funds to cover the cost of appointments, adjustments, and other related services. Just be sure to keep any receipts or documentation in case you need to submit them for reimbursement.

Overall, LSAs offer a valuable opportunity to prioritize your health and well-being with financial support from your employer. By understanding how your specific LSA works, you can make the most of this benefit and allocate the funds towards wellness expenses that matter most to you.

Can you use a Lifestyle Spending Account for chiropractic care?

The short answer is: it depends on your employer's LSA plan design and eligible expense categories.

Some employers choose to include chiropractic visits as part of their wellness or alternative care offerings within their LSA. They may view chiropractic care as a proactive way to support musculoskeletal health, reduce pain, and improve overall well-being.

In these cases, you would be able to use your LSA funds to cover the cost of chiropractic appointments, adjustments, and related services. However, it's important to check with your employer or LSA provider to confirm that chiropractic care is an approved expense category under your specific plan.

On the other hand, some employers may consider chiropractic care to be a medical expense rather than a wellness expense. In these situations, including chiropractic care as an eligible LSA expense could trigger additional regulations and compliance requirements.

For example, if an LSA covers medical expenses, it may be subject to ERISA (Employee Retirement Income Security Act) and COBRA (Consolidated Omnibus Budget Reconciliation Act) regulations. These regulations impose specific requirements on plan design, administration, and reporting.

To avoid these additional compliance burdens, many employers choose to exclude medical expenses, including chiropractic care, from their LSA eligible expense categories. Instead, they may offer coverage for chiropractic care through other health benefits, such as a health insurance plan or Health Savings Account (HSA).

If your employer's LSA does not cover chiropractic care, you may still have other options for offsetting the cost of these services. Check with your health insurance provider to see if chiropractic care is covered under your plan. You may also be able to use funds from an HSA or Flexible Spending Account (FSA) to pay for chiropractic expenses if you have one of these accounts available.

Ultimately, the ability to use your LSA for chiropractic care will depend on your employer's specific plan design and eligible expense categories. Be sure to review your LSA plan documents or check with your employer to understand what expenses are covered and how to access your funds for approved wellness activities and services.

What are the benefits of using an LSA for chiropractic care?

If your employer's Lifestyle Spending Account (LSA) covers chiropractic care, you can enjoy several advantages by using your LSA funds for these services. Here are some key benefits of using an LSA for chiropractic care:

Tax advantages

When you use your LSA to pay for chiropractic care, you're using pre-tax dollars. This means you can reduce your taxable income and potentially lower your overall tax liability. While LSA reimbursements are typically included in your gross income, your employer can deduct these reimbursements as a business expense. This can help offset the cost of offering the LSA benefit to employees.

Increased employee satisfaction

Offering chiropractic coverage through an LSA demonstrates your employer's commitment to supporting your health and well-being choices. By providing financial assistance for alternative care options like chiropractic services, your employer shows that they value your individual wellness needs and preferences. This can lead to increased employee satisfaction and a more positive perception of your employer's benefits package.

Improved productivity

Chiropractic care can help address musculoskeletal issues, such as back pain, neck pain, and headaches. These conditions can significantly impact your ability to perform your job duties effectively. By using your LSA to access chiropractic services, you can proactively manage these issues and potentially reduce absenteeism due to pain or discomfort.

Regular chiropractic adjustments may help improve your overall function, flexibility, and range of motion. This can translate to better job performance and increased productivity in the workplace. When you feel your best physically, you're more likely to be engaged and focused at work.

Additionally, using your LSA for chiropractic care can help you avoid more costly medical interventions down the line. By addressing musculoskeletal problems early on through chiropractic treatment, you may be able to prevent these issues from escalating into more serious health concerns that require expensive procedures or medications.

It's worth noting that the specific benefits of using an LSA for chiropractic care may vary depending on your individual circumstances and your employer's LSA plan design. Be sure to review your LSA plan documents and talk to your employer or benefits administrator to understand the full scope of your coverage and how to maximize the value of this benefit for your unique wellness needs.

What are the limitations of using an LSA for chiropractic visits?

While Lifestyle Spending Accounts (LSAs) offer flexibility and choice in supporting your wellness goals, there are some limitations to consider when it comes to using LSA funds for chiropractic care.

One of the main limitations is that LSAs cannot cover medical expenses without triggering additional compliance requirements. If an LSA plan includes medical expenses like chiropractic care, it may become subject to regulations such as ERISA (Employee Retirement Income Security Act), COBRA (Consolidated Omnibus Budget Reconciliation Act), and HIPAA (Health Insurance Portability and Accountability Act).

These regulations impose specific requirements on plan design, administration, reporting, and privacy protections. Employers must carefully navigate these compliance obligations to avoid potential penalties or legal issues.

To steer clear of these regulatory burdens, many employers choose to design their LSA plans with a focus on wellness and lifestyle expenses rather than medical expenses. They may explicitly exclude or limit coverage for services like chiropractic care to maintain the plan's status as a non-medical benefit.

Another limitation to keep in mind is the tax implications of using LSA funds for chiropractic services. When you use your LSA to pay for eligible expenses, your employer must include the reimbursed amounts in your gross income. This means you'll pay taxes on these funds, which can impact your overall tax liability.

It's important to factor in these tax considerations when deciding whether to use your LSA for chiropractic care or other wellness expenses. In some cases, it may be more advantageous to pay for these services using after-tax dollars or explore alternative funding options like HSAs or FSAs.

Additionally, even if your employer's LSA plan does cover chiropractic care, there may be restrictions on the specific services or providers that are eligible for reimbursement. Your employer may require you to use in-network providers, obtain a letter of medical necessity, or adhere to certain frequency or dollar limits for chiropractic visits.

Before using your LSA funds for chiropractic care, review your plan documents carefully and reach out to your employer or LSA provider with any questions. Understanding the specific limitations and requirements of your LSA plan can help you make informed decisions about how to allocate your wellness dollars.

What is a Lifestyle Spending Account (LSA) provides a comprehensive overview of how these accounts work, what expenses they typically cover, and how they differ from other employee benefits. By familiarizing yourself with the ins and outs of LSAs, you can determine whether using these funds for chiropractic care aligns with your personal wellness priorities and your employer's plan design.

Are there alternative ways to support chiropractic care in employee benefits?

If your employer's Lifestyle Spending Account (LSA) doesn't cover chiropractic care, don't worry. There are several other ways your employer can support your chiropractic needs through employee benefits.

One common approach is to include chiropractic coverage in traditional health insurance plans. Many employers offer health insurance that covers a range of medical services, including chiropractic care. Under these plans, you can typically visit a chiropractor for a specified number of visits or up to a certain dollar amount per year.

Another option is to use a Flexible Spending Account (FSA) to pay for chiropractic expenses. FSAs allow you to set aside pre-tax dollars for eligible healthcare expenses, which can include chiropractic care. The downside is that FSA funds are "use it or lose it," meaning you forfeit any unspent money at the end of the plan year.

If you have a high-deductible health plan (HDHP), you may be able to pair it with a Health Savings Account (HSA). HSAs offer a triple tax advantage: contributions are made pre-tax, the account grows tax-free, and withdrawals for eligible medical expenses are also tax-free. Chiropractic care is usually an HSA-eligible expense when used to treat a specific medical condition.

Some employers may offer standalone chiropractic benefits or discount programs. These programs provide access to chiropractic services at a reduced cost without the tax implications of an LSA or FSA. However, these standalone programs may have more limited networks or coverage compared to traditional health insurance.

If you're an employer looking to offer chiropractic benefits through an LSA, exploring LSA options with a provider like Forma can help you design a plan that meets your employees' needs while navigating compliance requirements.

When evaluating your employee benefits, it's always a good idea to review your plan documents and summary plan descriptions. These materials outline your specific coverage options, including any chiropractic benefits available to you. If you have questions, don't hesitate to reach out to your HR department or benefits administrator for guidance.

Remember, even if your employer's LSA doesn't cover chiropractic care, you likely have other avenues to access this valuable service. By understanding your full range of employee benefits, you can make informed decisions about your health and well-being.

Whether you can use a Lifestyle Spending Account (LSA) for chiropractic care depends on your employer’s plan design. Forma helps companies build flexible benefits programs that support employee wellness, including LSAs that can cover a wide range of eligible expenses. Schedule a consultation with one of our experts today to explore how Forma can help your organization create a benefits plan that meets your needs.