No, a smart watch is not eligible for purchase via a Flexible Spending Account (FSA) or a Health Savings Account (HSA). However, one may be eligible for reimbursement if you attain a Letter of Medical Necessity (LMN) from your healthcare provider.
Exceptions exist for smart watches that are marketed and designed primarily as biometric tracking devices for medical purposes. These products may qualify for reimbursement without a Letter of Medical Necessity (LMN), depending on their features and intended use.
Why Are Smart Watches Not FSA/HSA Eligible?
Smart watches are not generally eligible for reimbursement through a Flexible Spending Account (FSA) or Health Savings Account (HSA) because they are considered general-purpose consumer electronics rather than medical devices.
Although many smart watches include health-related features like heart rate monitoring, step tracking, and oxygen saturation measurement, these functions are primarily designed for general wellness and fitness rather than addressing a diagnosed medical condition. Products intended to promote overall health or lifestyle improvements are not considered medically necessary and therefore do not meet the criteria for FSA/HSA eligibility.
If a smart watch is prescribed by a healthcare provider for a specific medical condition—such as continuous monitoring of irregular heart rhythms or managing a chronic illness—it may qualify for reimbursement. In such cases, a Letter of Medical Necessity (LMN) from your healthcare provider is required to document the medical purpose of the device. Without an LMN, smart watches remain ineligible for reimbursement.
Do Any Smart Watches Qualify For FSA/HSA Reimbursement?
Certain smart watches, such as the Withings ScanWatch , qualify for FSA/HSA reimbursement because they are marketed primarily as biometric tracking devices for medical purposes. These devices go beyond general fitness tracking by offering features designed to assist in managing specific health conditions, such as:
Continuous Monitoring: Heart rate variability, oxygen saturation, and ECG functionality for tracking irregular heart rhythms or other cardiac conditions.
Health Insights: Metrics intended to aid in diagnosing or managing conditions like sleep apnea or chronic fatigue.
By focusing on medical applications rather than lifestyle enhancements, these devices align with IRS guidelines for medical expense eligibility. This distinction allows them to qualify for FSA/HSA reimbursement without requiring an LMN.
