Are Treadmills HSA Eligible?

Exercise equipment are eligible for reimbursement with a Letter of Medical Necessity (LMN) with a health savings account (HSA), flexible spending account (FSA), or a health reimbursement arrangement (HRA).

However, exercise devices should be used to treat a medical condition in order to qualify for reimbursement. Are you wondering if your treadmill is HSA eligible? Here’s what you need to know.

What is an HSA?

An HSA is a special kind of savings account that allows you to save money for qualified medical expenses like prescriptions or doctors’ visits using pre-tax or tax-deductible funds. Therefore, contributions to an HSA reduce the taxable income.

An HSA can also earn interest tax-free. The best thing is that the funds in your HSA aren’t taxed when you use them. The balance that is left in an HSA at the end of the year is carried on to the next year.

What are HSA-qualified Expenses?

Here’s a list of the HSA-qualified expenses:

  • The weight-loss program has to be a treatment for a specific disease diagnosed by a doctor—for example, heart disease, obesity, and hypertension.
  • Massage treatment for specific diagnosis or treatment.
  • Compression socks/hosiery, anti-embolism hose or socks.
  • CPR classes for children or adults.
  • Improvements of special equipment added to a home for a physically challenged person.

To be an eligible individual and qualify for an HSA, you must meet these conditions:

  • You’re covered under a high deductible health plan (HDHP).
  • You have no other health coverage.
  • You have not enrolled in Medicare.
  • No one can list you as a dependent on someone else’s 2020 tax return.

What is a Letter of Medical Necessity?

If you want to use the funds from your HSA to pay for exercise equipment or an electric bike, you must have been diagnosed with a medical condition. Once your physician diagnoses you with a medical condition, they can issue you with a letter of medical necessity.

A letter of medical necessity is a written statement from your doctor indicating that you have a specific medical condition. Buying a particular medical gadget, medicine, or an electric bike will aid in treating your medical condition. Therefore you can use funds from an HSA.

Are treadmills HSA eligible?

A treadmill is eligible for reimbursement when accompanied by a Letter of Medical Necessity (LMN) with a flexible spending account (FSA), health reimbursement arrangement (HRA), and health saving account (HSA). However, a treadmill isn’t eligible for reimbursement with a dependent care flexible spending account (DCFSA) or a limited-purpose flexible spending account (LPFSA).

Related: Best Treadmill for Heavy Weight

Process for treadmill HSA reimbursement

The IRS states that expenses eligible for reimbursement through HSA, FSA, or HRA must relate to” the costs of diagnosis, cure, mitigation, or treatment of disease, and the costs of treatment affecting any part or function of the body.” Therefore, exercise devices like treadmills can fall in this category, but some factors must be considered.

For a treadmill to be eligible for reimbursement, it must be used to prevent or treat a specific disease, including obesity or hypertension. To ensure that you get reimbursement for the expense, it’s recommended that you obtain the Letter of Medical Necessity (LMN) to be given to a benefits administrator and provide additional documentation for tax purposes.

If your doctor diagnoses you with a medical condition, they can recommend a treadmill that will help in treating or preventing the condition. The LMN should outline how the treadmill will be useful in alleviating your medical condition and how long the treatment will take.

If your treatment plan surpasses the current plan year, another LMN will be issued to the benefits administrator to cover the remaining duration of the treatment.

Common HSA providers

  • Bend
  • Bank of America
  • Blue Cross Blue Shield
  • BenefitWallet
  • Fidelity
  • Cigna
  • Further
  • Fifth Third
  • HealthEquity
  • HSA Authority
  • Lively
  • HSA Bank
  • PNC
  • Optum Bank

What exercise equipment are HAS eligible for?

Are Treadmills HSA Eligible?

Exercise machines are devices used for physical exercise. They include weights, treadmills, among others. These exercise equipment must be used to prevent or treat a specific medical condition to be eligible for reimbursement under a consumer-directed health care account. Exercise equipment meant for general health and wellbeing aren’t eligible for reimbursement.

Some medical conditions may demand exercise equipment, which a physician can determine and recommend. Examples of medical conditions that can demand exercise equipment include high blood pressure, diabetes, obesity, and more. However, weight loss plans aren’t a satisfactory reason for reimbursing the cost of exercise equipment.

Conclusion

If you’ve been diagnosed with high blood pressure, diabetes, or obesity, your doctor will recommend a treadmill or any other medical device which you can purchase with funds from an HSA. Therefore, a treadmill is HSA eligible.