Use It or Lose It: How to Use Your FSA/HSA for Medical Weight Loss Before Year-End
Don’t let your tax-free health dollars expire on December 31st. Here is how to invest them in your metabolic health.
As we approach the end of the year in Greenwood Village, the to-do lists are getting longer. Between holiday shopping at Park Meadows and planning family gatherings, there is one financial deadline that often slips through the cracks: Your Flexible Spending Account (FSA).
If you have an FSA, you likely know the “use it or lose it” rule. Any unused funds remaining in that account on December 31st are typically forfeited back to your employer.
Rather than scrambling to buy extra pairs of glasses or boxes of bandages you don’t need, consider investing those pre-tax dollars where they matter most: your long-term metabolic health.
Here is what patients in the Denver Tech Center area need to know about using health savings for medical weight loss.
The Difference Between “Weight Loss” and “Medical Care”
One of the most common questions we get is, “Can I use my FSA or HSA card here?”
The short answer is: Yes, in most cases.
The IRS draws a clear line between “general health” (like a standard gym membership or weight loss foods and supplements) and “treatment for a specific disease” (obesity, hypertension, or metabolic syndrome). Because we are a medical clinic treating a diagnosed condition, our services generally fall under eligible medical expenses.
What Can You Spend Your FSA/HSA Funds On?
If you are looking to utilize your remaining balance before the ball drops on New Year’s Eve, here are the most common eligible expenses at a medical weight loss practice:
- Clinic Visits & Consultations: Fees for seeing a physician, registered dietitian nutritionist or physician associate for weight management are eligible.
- Prescription Medications: FDA-approved anti-obesity medications (such as GLP-1 agonists) are typically eligible expenses.
- Lab Work: Metabolic panels and blood work ordered by your provider.
- Body Composition Analysis: Medical-grade body composition scans that track visceral fat and muscle mass are diagnostic tools, unlike standard bathroom scales.
The “Letter of Medical Necessity” (LMN)
Some FSA/HSA administrators require a specific document called a Letter of Medical Necessity.
Because general weight loss can sometimes be viewed as “cosmetic” by insurance adjusters, an LMN from your doctor proves that the service is treating a specific medical condition (like obesity, BMI >30, or BMI >27 with comorbidities).
Tip: If you are planning to use a large amount of FSA funds for a program package, ask us for an LMN during your next visit. We can provide the documentation you need to submit to your benefits administrator to ensure the expense is approved.
Why December is the Best Time to Start
Waiting until January 1st is the standard “New Year’s Resolution” playbook, but starting in December is the smarter financial move for three reasons:
- Deductibles are Met: For many of you, your annual insurance deductible has already been met for 2024. This means your out-of-pocket costs for labs or visits might be significantly lower right now than they will be in January when the deductible resets.
- FSA Expiration: As mentioned, that money disappears on January 1st. Using it to prepay for a program or stock up on eligible supplies locks in that value.
- Momentum: Starting medical management before the holiday feasts gives you a biological advantage (such as appetite regulation) during the most calorie-dense weeks of the year.
The Bottom Line
Your health is your most valuable asset. Don’t let your hard-earned money go to waste. If you have remaining FSA or HSA dollars, contact our office this week. We can help you check your eligibility and set up a plan that maximizes your benefits before the year ends.
Disclaimer: This article is for informational purposes only. Every insurance plan and FSA administrator has different rules. Please check with your benefits administrator to confirm eligibility.
