Are Fitness Trackers FSA Eligible?

Flexible Spending Accounts (FSAs) and Health Savings Accounts (HSAs) allow individuals to pay for qualified healthcare expenses with pre-tax dollars. These accounts help manage out-of-pocket medical costs. HSAs typically allow funds to roll over annually, providing a long-term savings vehicle. FSAs generally operate on a “use-it-or-lose-it” basis, though some plans offer a grace period or limited carryover.

General Eligibility for Medical Expenses

The Internal Revenue Service (IRS) defines medical expenses as costs incurred primarily for the diagnosis, cure, mitigation, treatment, or prevention of disease, or for affecting any structure or function of the body. Understanding this definition is fundamental for proper reimbursement from FSAs and HSAs. This definition helps distinguish eligible expenses from those that are not.

Expenses solely for general health, such as vitamins for wellness or gym memberships, are not eligible for reimbursement. The IRS requires the expense to primarily alleviate or prevent a physical or mental disability or illness. Items promoting general well-being without a specific medical directive are usually not covered.

Fitness Trackers and Medical Necessity

Fitness trackers are generally not eligible for reimbursement through FSAs or HSAs, as their primary function is promoting general health. However, a fitness tracker becomes eligible if a licensed healthcare provider determines it is medically necessary for the diagnosis, treatment, mitigation, or prevention of a specific illness or condition.

To qualify, a Letter of Medical Necessity (LMN) or prescription from a healthcare provider is required. The LMN must clearly state the patient’s medical condition, explain how the tracker is a necessary tool for treatment, and indicate the duration needed.

For instance, a fitness tracker might be medically necessary to monitor heart rate for a cardiac condition or track activity levels for obesity or diabetes. The provider must explicitly document this medical necessity, demonstrating a direct link between the device and the patient’s health condition. Without this substantiation, fitness trackers remain ineligible for reimbursement.

Required Documentation for Reimbursement

To obtain reimbursement for an eligible fitness tracker, specific documentation is necessary. The primary document required is a Letter of Medical Necessity (LMN) or a prescription from a licensed healthcare provider. This letter must detail the patient’s medical condition, explain how the fitness tracker is integral to treatment, and specify the duration of its necessity.

An itemized receipt for the fitness tracker is also required. This receipt must clearly display the vendor’s name, purchase date, a detailed description of the tracker, and the exact amount paid. A credit card statement or canceled check alone is not sufficient, as they lack specific item details required by IRS regulations.

These documents substantiate the claim to your FSA or HSA administrator, ensuring IRS compliance. Retain copies of all purchases and medical necessity documentation for any potential audits.

Submitting Your Claim

After preparing the Letter of Medical Necessity and itemized receipt, submit your reimbursement claim. Most FSA and HSA administrators offer online portals, mobile applications, or traditional mail/fax options. Steps may vary by plan administrator.

To submit a claim, access the form through your administrator’s online portal, app, or a printable form. Provide your account holder name, claim amount, and purchase date. Attach or upload the LMN and itemized receipt as supporting documentation.

Claims are typically processed within a few business days. Retain copies of all submitted documents for your records, as administrators may request additional information or clarification.