Yes, rental costs for medical equipment are eligible for reimbursement with a Flexible Spending Account (FSA) or Health Savings Account (HSA) when the equipment is used to treat or manage a diagnosed medical condition.
Why Are Rental Costs for Medical Equipment FSA/HSA Eligible?
According to IRS Publication 502, the cost of renting medical equipment qualifies as a reimbursable expense if the equipment is primarily used to treat or alleviate a medical condition and is prescribed or recommended by a licensed medical provider. Eligible rentals must be for equipment that is not for general health, convenience, or personal comfort.
FSA- and HSA-eligible medical equipment rentals may include:
Wheelchairs and mobility aids
Hospital beds for home use
CPAP machines and accessories for sleep apnea
Oxygen equipment
Breast pumps and breastfeeding supplies
Crutches, walkers, and canes
Nebulizers and other respiratory therapy devices
In many cases, rental costs are eligible in lieu of or in addition to the option to purchase equipment.
What’s Not Covered?
The following are not eligible:
Equipment rented for personal comfort or convenience (e.g., massage chairs or general-use recliners)
Equipment used for athletic performance or general wellness rather than medical necessity
Long-term rentals that are more economical as purchases (if not deemed medically appropriate)
Equipment rented without a valid medical need
The rental must be medically necessary and used to treat or manage a specific medical issue to qualify.
How to Use Your FSA or HSA for Medical Equipment Rentals
To pay for medical equipment rentals with your FSA or HSA:
Use your FSA or HSA card through a qualified medical supplier or pharmacy
Obtain an itemized invoice that details the equipment rented, dates of rental, and provider information
Keep a doctor’s note or prescription confirming medical necessity in case your plan administrator requests documentation
For full details on eligible medical equipment and rental expenses, refer to IRS Publication 502.
