Can Your FSA Help You Live Healthier? The Answer Might Surprise You

If you’re trying to eat healthier, stay active, or better manage a medical condition, your Flexible Spending Account (FSA) may be able to help. But before you start swiping your benefits card for protein powder and gym memberships, there’s one important rule to remember:

The IRS allows FSA funds to be used for expenses that diagnose, treat, mitigate, or prevent a medical condition. It’s not simply to maintain general health.

In other words, the expense must have a medical purpose.

So what health, wellness, and nutrition expenses qualify? Let’s learn more about FSA wellness expenses.

Nutrition and Dietary Support

Many people are surprised to learn that some nutrition-related expenses can be eligible for FSA reimbursement.

For example, visits with a licensed nutritionist or registered dietitian may qualify if the services are used to treat a diagnosed medical condition such as diabetes, obesity, high blood pressure, or heart disease. In some cases, you may need a Letter of Medical Necessity (LMN) from your doctor.

The same is true for certain nutritional supplements and meal replacement products. A daily multivitamin purchased to support general wellness typically does not qualify. However, supplements prescribed or recommended to treat a specific medical condition may be eligible when supported by appropriate documentation.

What About Gym Memberships?

Here’s the question everyone wants answered.

Unfortunately, a standard gym membership is generally not an eligible FSA expense.

The IRS considers gym memberships, health clubs, and fitness classes to be personal expenses that promote general health. That means your monthly dues to the local fitness center usually won’t qualify.

However, there can be exceptions. If your physician prescribes a specific exercise program to treat a diagnosed medical condition, some related expenses may qualify with a Letter of Medical Necessity. Eligibility depends on the specific circumstances and the requirements of your benefits administrator.

Managing Diabetes with Pre-Tax Dollars

This is where FSAs can shine. Many diabetes-related expenses are eligible, including:

• Blood glucose monitors
• Test strips
• Lancets
• Insulin
• Continuous glucose monitoring (CGM) supplies
• Diabetes education programs

These expenses can add up quickly throughout the year, making an FSA a valuable tool for managing out-of-pocket healthcare costs.

FSA Wellness: Don’t Forget Preventive and Wellness-Related Items

A number of products that support your health may also qualify, including:

• Blood pressure monitors
• First-aid supplies
• Sunscreen (SPF 15 or higher)
• Smoking cessation programs
• Breast pumps and supplies
• Certain weight-loss programs prescribed to treat a medical condition

Again, the determining factor is whether the expense primarily treats or prevents a medical condition rather than simply improving overall wellness.

When in Doubt, Check Before You Buy

FSA eligibility isn’t always black and white. A protein shake, nutrition consultation, fitness program, or supplement might be reimbursable in one situation and ineligible in another.

Before making a purchase, consider these questions:

• Is the expense related to a diagnosed medical condition?
• Does it require a Letter of Medical Necessity?
• Do I have documentation from my healthcare provider?
• Will my benefits administrator consider it eligible?

A quick check now can help you avoid reimbursement headaches later.

FSA Wellness and Your Health

A healthier lifestyle may be closer than you think (and your FSA might be able to help pay for part of the journey). Your account can do much more than cover doctor visits and prescriptions. From diabetes supplies to nutrition counseling and certain medically necessary wellness expenses, there are plenty of opportunities to put those pre-tax dollars to work.

Just remember: healthy living is great, but for FSA purposes, eligibility usually depends on medical necessity (not simply good intentions).

Captain Contributor is an award-winning employee education and engagement program designed to make benefits simple and easy to understand. Contact DataPath, Inc. for more information.