Warranties on products are not eligible for reimbursement with a Flexible Spending Account (FSA) or Health Savings Account (HSA).
Why Are Warranties on Products Not FSA/HSA Eligible?
A warranty is considered a service or insurance-style agreement, not a medical expense. Under IRS Code Section 213(d), only expenses paid for the diagnosis, cure, mitigation, treatment, or prevention of disease are eligible for FSA/HSA reimbursement. Warranties simply provide protection or replacement coverage for a product—not medical care itself.
According to IRS Publication 502, expenses that are not directly related to medical care—including warranties, service plans, or insurance policies—do not qualify as medical expenses, even when they cover eligible medical equipment.
For example, purchasing a warranty for a blood pressure monitor, glucose meter, or CPAP machine does not make the warranty itself eligible, even though the underlying device is.
What’s Not Covered?
Product warranties or protection plans (including extended warranties)
Accidental damage coverage for eligible medical devices
Service contracts or maintenance plans
Replacement guarantees or product insurance plans
Any non-medical support or coverage fees attached to a product purchase
LMN and Exceptions
Warranties and product protection plans are never eligible, even with a Letter of Medical Necessity (LMN).
The warranty itself does not constitute medical care—it is a financial safeguard, not a treatment or diagnosis tool. Only the purchase of the medical product or device (e.g., blood glucose meter, hearing aid, or blood pressure cuff) may qualify for FSA/HSA reimbursement.
To ensure you’re reimbursed properly:
Separate the warranty cost from the main product at checkout if possible.
Submit receipts that show the medical product cost independently from the warranty or protection plan.
Only claim reimbursement for the eligible product portion of the purchase.
Extended warranties, service plans, and protection programs are strictly ineligible under FSA or HSA rules.
