Don’t Leave Money on the Table This December
As the calendar year draws to a close, now is the critical time to help your aging-in-place clients leverage their remaining flexible spending accounts (FSA) and year-end budgets for essential home modifications. Many clients may be unaware that unused FSA funds are subject to the “use it or lose it” rule, with most plans requiring expenses to be incurred by December 31, 2025.
FSA Eligibility for Home Modifications
While traditional FSAs typically cover medical products and services, certain home modifications may qualify when prescribed by a physician as medically necessary for a specific diagnosis or condition. Educate your clients that equipment such as grab bars, raised toilet seats, and transfer benches often qualify as eligible medical expenses when recommended as part of their occupational therapy treatment plan. However, structural modifications like ramp installation or bathroom remodeling generally do not qualify for FSA reimbursement unless they accommodate a specific medical condition.
Important Deadlines and Options
Remind clients to check with their FSA administrators about their specific plan rules, as employers may offer either a carryover provision (allowing up to $660 to roll into 2026) or a 2.5-month grace period extending into mid-March 2026. However, not all employers offer these options, making December planning essential for those with standard December 31 deadlines.
Year-End Budget Strategies
For clients who have allocated home improvement budgets or are considering modifications, December offers several advantages. Many clients receive year-end bonuses or have budgeted funds earmarked for home improvements that reset annually. Additionally, scheduling assessments and ordering equipment now ensures installations can begin in early 2026, allowing clients to start the new year with improved safety and accessibility.
Your Role as the OT Professional
As home modification experts, you can support clients by providing detailed recommendations and documentation that clearly connects modifications to their functional needs and safety goals. Offer to prepare letters of medical necessity that clients can submit to their FSA administrators or insurance companies. This documentation strengthens their case for reimbursement and positions you as an invaluable partner in their aging-in-place journey.
Consider reaching out proactively to clients who have mentioned financial constraints earlier in the year, as December may present unexpected opportunities to move forward with previously postponed modifications.
References
FSA Store. (2024, December 31). FSA deadline 2025: Use it or lose it rule explained. https://fsastore.com/articles/learn-flexible-spending-account-use-it-or-lose-it-rule-changes-fsa-deadline.html
Dartmouth College Human Resources. (2024, December 31). 2025 Dependent Care Flexible Spending Account (DCFSA). https://www.dartmouth.edu/hr/benefits_compensation/benefits/2025_benefits/dcfsa.php
The Home Accessibility Therapist LLC 
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