Medicare does not cover acupuncture, states Medicare.gov. Acupuncture is considered an out-of-pocket expense. One option to consider is pairing a high-deductible insurance plan with a health savings account that allows its tax-free funds to be allocated for eligible health care expenses, reports HSAcenter.com.
In order to remain tax-free and not accrue a 20-percent tax penalty, health savings account funds must be used for services that prevent or reduce the symptoms of physical or mental defects, states HSAcenter.com. Acupuncture is included in the list of eligible health care expenses, which also includes other types of alternative medicine, such as chiropractic treatment and massage therapy.