Do Health Apps Qualify for FSA? How to Check Eligibility for Health Trackers and Devices

Many people ask: do health apps qualify for FSA reimbursement? The answer depends on the app's medical purpose, your FSA provider's rules, and whether you have proper documentation. FSAs don't list most health apps by name, which makes eligibility confusing. This guide explains how FSAs categorize apps and devices — and how to check your provider's eligibility list accurately.

Health apps and devices can be FSA-eligible when they serve a specific medical need — but finding them in your provider's eligibility database requires searching for function, not brand name.

Do Health Apps Qualify for FSA? The Direct Answer

Health apps can be FSA-eligible if they meet IRS standards for medical care. According to IRS Publication 502, eligible expenses include costs to diagnose, cure, mitigate, treat, or prevent disease. Health apps qualify when they:

• Address a specific diagnosed medical condition
• Are recommended by a licensed healthcare provider
• Track medical data such as blood pressure, glucose, labs, or vitals
• Have supporting documentation (typically a Letter of Medical Necessity)

General wellness apps without a documented medical purpose typically do not qualify. Your FSA provider makes the final determination.

IRS Rules: What Makes a Health App FSA Eligible

The IRS defines medical care broadly in Publication 502, covering expenses for diagnosis, treatment, mitigation, or prevention of disease. For health apps and FSA eligible devices, this means:

• Medical necessity: The app or device must serve a medical purpose beyond general wellness
• Healthcare provider recommendation: A licensed clinician (MD, DO, NP, PA) should recommend it
• Documented condition: You need a diagnosed condition the app helps manage (e.g., hypertension, diabetes, high cholesterol)
• Substantiation: You must provide receipts and supporting documentation upon request

Apps and devices for general fitness, weight loss, or wellness without a medical diagnosis typically do not meet IRS standards for medical care.

What FSA Providers Look For

Beyond IRS rules, your FSA administrator evaluates health app FSA eligible claims based on:

• Category match: Does the expense fit an eligible category in their system?
• Medical purpose: Is there clear documentation showing medical necessity?
• Provider approval: Did a healthcare provider recommend this specific type of tracking?
• Condition specificity: Is the app/device tied to a diagnosed condition (not general wellness)?

Different providers use different eligibility lists. An item approved by one administrator may require additional documentation from another.

How to Search Your Provider's Eligibility List

Most FSA providers — including FSAFEDS, Optum, WageWorks, and HealthEquity — offer an online eligibility tool. Use these search strategies:

Search by Function, Not Brand

FSA databases categorize by medical function. Searching for exact product names often fails.

Example:

• Searching "smart scale" → No results
• Searching "body composition monitor" → Eligible item found

Try Multiple Keyword Variations

If your first search shows nothing, try related terms. The same device may appear under different names across providers.

Keyword Categories to Try

For Monitoring Devices:

• monitor
• body composition
• medical monitoring
• test kit
• health tracking
• biometric tracking

For Health Tracker FSA Searches:

• activity tracker
• wearable
• step counter
• fitness monitor

For General Medical Equipment:

• medical equipment
• medical supplies
• diagnostic devices

Letter of Medical Necessity (LMN) Requirements

Many FSA providers require a Letter of Medical Necessity for health apps and tracking devices. An LMN is a signed statement from your licensed healthcare provider explaining:

• Your diagnosed medical condition (with ICD-10 code if applicable)
• The recommended device or app type
• The medical purpose (e.g., blood pressure monitoring, lab trend tracking)
• The recommended duration (often 12 months)

Without an LMN, many providers will deny claims for apps and devices, even if the item appears in their eligibility database.

For a ready-to-use LMN template you can share with your healthcare provider, see our complete guide on using HSA or FSA with a Letter of Medical Necessity.

Examples: HSA vs FSA Eligible Apps and Devices

What Does Not Qualify for FSA Reimbursement

The following typically do not meet IRS or FSA provider standards:

• General wellness apps: Apps for meditation, stress reduction, or habit tracking without a diagnosed medical condition
• Fitness-only devices: Pedometers, basic fitness trackers, or gym equipment without medical necessity documentation
• Weight loss programs: Weight loss apps, meal planning tools, or diet programs unless prescribed for a specific condition (e.g., obesity with comorbidities)
• Subscription services: Streaming fitness classes, wellness coaching, or general health content without documented medical purpose

If your item falls into one of these categories but your clinician believes it serves a medical purpose, ask for an LMN. Provider discretion varies.

Frequently Asked Questions

Q: Do health apps qualify for FSA reimbursement?
A: Health apps can qualify when they serve a documented medical purpose, are recommended by a licensed healthcare provider, and meet your FSA provider's eligibility standards. General wellness apps typically do not qualify.

Q: What is the difference between HSA vs FSA eligible apps?
A: HSA and FSA eligibility follow the same IRS Publication 502 standards. Both require medical necessity. The main difference is account structure: HSAs roll over annually and are owned by you; FSAs are employer-sponsored and often "use-it-or-lose-it."

Q: How do I know if my health tracker is FSA eligible?
A: Check your FSA provider's eligibility tool using functional keywords (e.g., "activity tracker," "monitor," "body composition"). If the device tracks medical data and your clinician recommends it for a diagnosed condition, it may qualify with an LMN.

Q: Can I use my FSA for wearable devices like smartwatches?
A: Wearables may qualify if they track medical data (heart rate, blood pressure, activity, sleep) and are recommended by your healthcare provider for managing a diagnosed condition. Check your provider's eligibility list and obtain an LMN.

Q: What documentation do I need for FSA reimbursement?
A: You need a receipt showing the purchase date, amount, and vendor name, plus a Letter of Medical Necessity from your healthcare provider explaining the medical purpose and your diagnosed condition.

Summary: Do Health Apps Qualify for FSA?

Health apps qualify for FSA reimbursement when they meet IRS medical care standards: they must address a diagnosed condition, be recommended by a licensed healthcare provider, and have supporting documentation (typically an LMN). FSA eligible devices and apps rarely appear by brand name in eligibility databases — search by function (e.g., "monitor," "body composition," "medical tracking") to find the correct category.

For step-by-step instructions on submitting FSA claims with a Letter of Medical Necessity, see our complete HSA/FSA guide with free LMN template. For more health education resources, visit our Learn page.

*This article is for educational use only and does not provide medical, tax, or legal advice. FSA eligibility is determined by your plan administrator. Consult your healthcare provider, FSA provider, and tax professional for guidance specific to your situation. References: IRS Publication 502 (Medical and Dental Expenses).*