Does an FSA Cover Exercise Equipment?

A Flexible Spending Account (FSA) is an employer-sponsored benefit that allows individuals to set aside pre-tax money for qualified medical expenses. This reduces taxable income, offering a financial advantage for managing healthcare costs. The funds deposited into an FSA can be used for a variety of health-related services and products throughout the plan year.

Understanding FSA Qualified Expenses

To be eligible for reimbursement through an FSA, an expense must meet the Internal Revenue Service (IRS) definition of a “qualified medical expense.” These expenses are for the diagnosis, cure, mitigation, treatment, or prevention of disease. They also include costs to affect any structure or function of the body. This broad definition covers a range of medical services, prescription medications, and certain over-the-counter items.

However, expenses for general health, such as vitamins or health club membership dues, typically do not qualify. Items with a dual purpose often require additional substantiation to prove their medical necessity. This distinction is important because exercise equipment, while potentially beneficial for health, is not automatically considered a qualified medical expense under these guidelines.

Obtaining a Letter of Medical Necessity

Exercise equipment can become an FSA-eligible expense if it is deemed medically necessary for a specific health condition. This determination requires a Letter of Medical Necessity (LMN) from a licensed healthcare provider, such as a doctor. The LMN serves as certification that the item or service is required to treat or mitigate a diagnosed medical condition, rather than being for general personal use.

The LMN must contain specific details to be valid for FSA reimbursement. It should clearly outline the patient’s diagnosed medical condition and describe how the recommended exercise equipment will alleviate or treat this condition. It might specify a particular piece of equipment, like a stationary bike for a cardiac rehabilitation patient, and explain its therapeutic role. The letter must also indicate the duration for which the equipment is needed to treat the condition, which could range from a defined period to a lifetime for chronic conditions. Individuals should proactively discuss their medical needs with their healthcare provider and request an LMN before purchasing the equipment.

Submitting Your Claim for Reimbursement

Once you have obtained the necessary Letter of Medical Necessity and purchased the qualified exercise equipment, you can submit a claim for reimbursement. The process typically involves completing a reimbursement request form provided by your FSA administrator. This form will usually ask for basic account holder information and details about the expense.

Along with the completed form, you must include specific supporting documentation. Include an itemized statement or receipt for the exercise equipment. The documentation must clearly show the date of service or purchase, the provider or vendor, a detailed description of the item, and the exact amount charged.

Credit card receipts or balance-forward statements are usually not sufficient, as they lack the necessary itemized detail. Most FSA administrators offer multiple ways to submit claims, including online portals, mail, or fax. After submission, claims are typically processed within a few business days, though some may require further review.