Can I Use FSA for Alternative Medical Devices?

If you have a Flexible Spending Account (FSA), it's a great way to save money on health costs using tax-free dollars. But not everything you buy counts. To use your FSA for a medical device, it needs to follow some rules made by the IRS. Knowing these rules can help you get the most out of your FSA and avoid any problems.

What Does "FSA-Eligible" Mean?

The IRS Code Section 213(d) says a device must be used to help diagnose, treat, prevent, or manage a disease or medical condition, or support how the body works. In simple terms: if the device helps with a health problem, there's a good chance it qualifies.

Here are a few examples:

• Blood pressure monitors - usually covered
  
• Crutches or wheelchairs - covered if your doctor gives you a prescription
  
• Thermometers and first aid kits - often covered without a prescription
  
• Fitness trackers - not covered unless your doctor says you need one for a medical condition

When Do You Need a Prescription?

Some items, like bandages and thermometers, are over-the-counter (OTC) and don’t need a prescription. This got easier after the CARES Act passed in 2020.

Items that usually do need a prescription include:

• Wheelchairs
  
• CPAP machines for sleep apnea
  
• Oxygen machines
  
• TENS units for pain relief
  

There are also items that can be used for both general health and medical care. These are called dual-purpose items. For these, you’ll need a Letter of Medical Necessity (LMN) from your doctor. For example, an air purifier might be covered if it helps with asthma, but not if it’s just for cleaner air.

Types of Devices That May Be Covered

Here’s a simple table to help you understand:

What Doesn't Count?

Not everything gets covered, even if it seems helpful. These items are usually not covered:

• Devices for general wellness or fitness, like massage chairs or step counters
  
• Cosmetic items, like teeth whitening kits (unless for a health reason)
  
• Products that aren’t approved by medical experts
  

Even if a device seems health-related, if it’s just for comfort or looks, it probably won’t count.

Your FSA Plan May Have Its Own Rules

The IRS makes the basic rules, but your FSA plan might have extra ones. Some plans are more limited for example, Limited Purpose FSAs usually only cover vision or dental items. It’s always smart to ask your FSA provider before you buy something expensive.

Like, Buying a thermometer at the store? Likely covered. Getting a smart watch to track heart rate while exercising? Not covered unless your doctor says it’s needed for a condition.

So in the end, A device is FSA-eligible if it:

• Helps with a medical condition (diagnosis, treatment, or prevention)
  
• Isn’t just for general health or comfort (unless a doctor says it’s needed)
  
• Might need a prescription or doctor’s note, depending on the item
  
• Follows IRS and your FSA plan’s rules
  

If your doctor says you need it for your health, and your plan allows it, your FSA will likely cover it. But if you’re not sure, always check first. That way, you’ll save money and avoid any headaches later.

Are Alternative Medical Devices Covered by FSA?

If you’re trying to manage a health problem and are wondering if your Flexible Spending Account (FSA) can help pay for alternative medical tools, you’re not alone. Things like red light therapy or TENS units can help with pain or skin issues, but whether they’re covered by your FSA depends on how you use them and what kind of proof you have.

What Are Alternative Medical Devices?

These are devices used in treatments outside of regular doctor visits. They include things like:

• TENS units for pain
  
• Red light panels for skin problems
  
• Acupuncture needles
  
• PEMF (Pulsed Electromagnetic Field) mats
  
• Biofeedback tools to help with stress or focus
  

These tools are different from things like crutches or thermometers but can still treat real health conditions.

Can You Use FSA Money to Pay for Them?

Sometimes. The device has to be used for a specific medical issue. And most of the time, your doctor will need to say that it’s medically necessary. You might also need a special letter a LMN or a prescription.

When These Devices Are Usually Covered?

Here’s a quick guide:

What’s Usually Not Covered

If a device is just for general wellness or relaxation and not tied to a health issue, it usually isn’t covered. Some examples:

• Meditation headbands (unless your doctor recommends it)
  
• Essential oil diffusers
  
• Massage guns or foam rollers (unless for recovery from an injury)
  
• Crystal mats or unapproved healing tools
  

In-Between Cases

Some tools might be covered depending on how they’re used and if your doctor recommends them. These are called "gray areas."

• Using a red light device at home for psoriasis
  
• Using a PEMF mat for back pain
  
• Using cupping kits after surgery for muscle recovery
  

In these cases, your best bet is getting a doctor’s letter explaining why it’s needed.

How to Help Get Your Device Approved?

Ask your doctor for a Letter of Medical Necessity or a prescription
Keep receipts and product info
Make sure your provider is certified (like licensed acupuncturists)

For Examples

• Buying a TENS unit for back pain? Likely covered.
  
• Getting acupuncture needles for yourself? Might be covered, but you’ll probably need a doctor’s letter.
  
• Buying red light therapy for acne? Could be covered if you have the right paperwork.
  
• Purchasing a PEMF mat because it feels good? Probably not covered without medical support.
  

The IRS has rules about what counts as a medical expense, but each FSA plan might be a little different. Some plans are more strict. Always check with your FSA provider before buying something expensive.

Some alternative devices can be paid for with FSA money, but only if they’re really needed for your health. Make sure to have proof and double-check with your provider to avoid surprises.

How to Claim These Devices Using FSA?

Found a health device like a TENS unit or a red light panel that could help you feel better? Awesome! If you have a Flexible Spending Account (FSA), you might be able to use that money to buy it. Here’s how to do it in a few easy steps.

Step 1: Make Sure the Device Is FSA-Eligible

Before you spend any money, double-check that the device is actually eligible for FSA reimbursement. You can:

• Look it up on the FSA Store eligibility list
  
• Check IRS Publication 502
  
• Ask your FSA plan administrator
  

If it’s an over-the-counter (OTC) item like a thermometer, you might not need anything extra. But for devices like red light therapy or PEMF mats, you’ll probably need a Letter of Medical Necessity or a prescription.

Step 2: Get the Right Documentation

To stay on the safe side, gather the following:

• Prescription or LMN (if needed): This should include your diagnosis, the purpose of the device, and your doctor’s credentials.
  
• Itemized receipt: It must include the date, product name, purchase price, and seller info. A receipt that just says “health device” might get your claim denied.
  

💡 Tip: If you’re shopping online, make sure the store accepts FSA cards or plan to submit a claim later.

Step 3: Make the Purchase

You have two options:

• Use your FSA debit card at approved retailers like Walgreens, CVS, Amazon, or Med Paid Market (a trusted store for FSA and HSA eligible products).
  
• Pay out of pocket if your card isn’t accepted, and submit a claim for reimbursement.
  

Step 4: Submit a Claim (If Needed)

If you didn’t use your FSA card or if your purchase gets flagged you’ll need to file a claim. Here’s how:

1. Log into your FSA portal and fill out the claim form.
   
2. Attach your receipt, and your LMN or prescription if required.
   
3. Submit it online, by email, or by mail depending on your provider’s process.
   

Most claims take a few weeks to process. If your paperwork is solid, it should go through smoothly.

Step 5: Watch for Deadlines and Track Your Claim

• Check the deadline for your plan many let you submit claims up until March 31 of the next year.
• Follow up if you haven’t heard back within a few weeks.

💡 Keep a folder with copies of your LMNs, receipts, and claim approvals for at least three years. The IRS can ask for proof during audits.

Examples to Help You Understand

Here’s what the process looks like for different devices:

• TENS unit for chronic back pain → Submit receipt + doctor’s prescription
  
• Red light therapy for psoriasis → Submit receipt + LMN
  
• Acupuncture kit for migraines → Submit LMN + itemized receipt
  

Mistakes You Should Avoid

❌ Submitting a generic receipt (like “wellness device”) with no product name 
❌ Forgetting your LMN for alternative or dual-purpose devices 
❌ Missing your plan’s deadline to file a claim

Quick Tips to Make Things Easier

• Buy from reputable stores like Med Paid Market to avoid issues they clearly label what’s FSA eligible.
  
• Ask for pre-approval for expensive or “gray area” items (like PEMF mats or home-use light therapy)
  
• Keep your documentation organized, even if you used your FSA debit card

Claiming an alternative medical device using your FSA doesn’t have to be stressful. The key is:

• Confirm the item is eligible
  
• Get the right paperwork
  
• Use your FSA card or submit a detailed claim
  
• Keep your records
  

And if you’re not sure where to buy, check out Med Paid Market. They sell tons of FSA-eligible products and clearly mark what qualifies. It’s a great way to stay healthy and use your FSA dollars the smart way!