News

1. HSA Eligibility Basics: What Counts as Medical Expense?

A. The IRS Rulebook

• Medical Necessity: The key criterion—items must treat or prevent a specific health condition (not just general fitness).
• Examples: A heart rate monitor used to manage tachycardia or a GPS watch prescribed for cardiac rehab exercise.

B. Gray Areas & Clarifications

• Fitness Apps vs. Devices: Standalone apps are typically ineligible, but watches with medical-grade sensors (e.g., EKG functionality) may qualify.
• Doctor’s Note: For ambiguous items, request a Letter of Medical Necessity (LMN) from your healthcare provider to support HSA claims.

2. HSA-Eligible Fitness Gear: Top Categories

A. Heart Rate Monitors & Smart Watches

• Medical Use Cases:
  • Monitoring arrhythmias, post-workout recovery for cardiac patients, or stress-induced tachycardia.
• Eligible Models:
  • HSA smart watches with FDA-cleared heart rate sensors (e.g., EZON Heart Rate Series).
  • Chest strap monitors (e.g., Polar H10) prescribed for heart condition management.

B. GPS Running Watches for Therapeutic Exercise

• Qualifying Scenarios:
  • Rehab from joint injuries (e.g., knee surgery) with doctor-recommended walking/running plans.
  • Diabetes management through structured aerobic activity tracking.
• Key Features:
  • GPS for distance accuracy, heart rate zones to maintain therapeutic intensity (50–70% MHR).

C. Nutrition Plans & Supplements

• Eligible Services:
  • Registered dietitian-led plans for conditions like obesity, diabetes, or food allergies.
• Supplements:
  • Protein powders prescribed for muscle wasting (e.g., after surgery), with an LMN.

3. How to Budget HSA Funds for Fitness

A. Allocation Strategies

B. Smart Spending Tips

• Pre-Tax Contributions: Max out HSA contributions ($3,850 individual/$7,750 family in 2023) to fund fitness purchases with pre-tax dollars.
• Year-Round Tracking: Use apps like HSA Bank Mobile to categorize fitness expenses in real time.

4. Claiming HSA Reimbursement: Step-by-Step

1. Purchase with HSA Card: Swipe directly for eligible items when possible.
2. Retain Documentation:
   • Item receipts, LMN for ambiguous purchases, and doctor’s notes for services.
3. Submit Claims:
   • Upload documents to your HSA provider’s portal (e.g., Optum, HealthEquity) within 12 months of purchase.

5. Common HSA Fitness Pitfalls to Avoid

1. Buying “Fitness-Only” Devices:
   • Solution: Prioritize watches with dual functionality (medical + fitness), like HSA smart watches.
2. Neglecting LMNs:
   • Solution: For products like GPS running watches, ask your doctor to specify “therapeutic exercise tracking” on the LMN.
3. Overspending on Luxury Features:
   • Solution: Focus on medical-grade features (e.g., FDA-cleared sensors) over aesthetic upgrades.

6. FAQs: HSA Fitness Eligibility Clarified

Q: Can I use HSA for a gym membership?

• Rarely, unless it’s part of a doctor-prescribed rehab program. Request an LMN stating “medically necessary for weight management” if applicable.

Q: Do fitness trackers qualify if they monitor heart rate?

• Only if used to treat a specific condition. A general fitness tracker for wellness won’t qualify, but a heart rate monitor prescribed for arrhythmia will.

Q: How to handle cross-border purchases?

• Ensure the product has local medical certification (e.g., FDA in the U.S., CE in Europe) and retain all international receipts.

Maximize Health & Savings with Strategic HSA Use