In a significant move for fitness enthusiasts, several leading brands, including Wahoo and Garmin, have announced that their products are now eligible for purchase using Health Savings Accounts (HSAs) and Flexible Spending Accounts (FSAs). This development allows individuals to use pre-tax dollars to invest in their health and wellness, potentially saving up to 30% on eligible purchases. This shift reflects a growing trend in the healthcare industry, where preventative care and holistic wellness are increasingly prioritized.
What are HSAs and FSAs?
Before diving into the specifics, let’s clarify what HSAs and FSAs are. Both are tax-advantaged plans designed to help individuals pay for healthcare expenses.
- Health Savings Account (HSA): An HSA is available to individuals enrolled in high-deductible health plans (HDHPs). Contributions are tax-deductible, the account grows tax-free, and withdrawals for qualified medical expenses are tax-free. Importantly, HSA funds roll over year to year.
- Flexible Spending Account (FSA): An FSA is an employer-sponsored plan that allows employees to set aside pre-tax dollars for eligible healthcare costs. Unlike HSAs, FSAs typically have a “use-it-or-lose-it” rule, meaning funds must be used within the plan year, although some plans may offer a grace period or allow a small amount to roll over.
Both types of accounts offer a way to reduce your taxable income while paying for health-related expenses.
Wahoo’s HSA/FSA-Eligible Products
Wahoo Fitness, a prominent name in cycling and endurance sports technology, has recently announced that its entire ecosystem of products is now eligible for HSA/FSA purchases. This includes a wide array of equipment:
- KICKR Smart Trainers: These indoor trainers provide a realistic cycling experience, allowing athletes to train effectively regardless of weather conditions.
- KICKR Bikes: Wahoo’s smart bikes offer a comprehensive indoor cycling solution, complete with integrated controls and data tracking.
- KICKR RUN Treadmill: The innovative KICKR RUN treadmill is also now eligible for purchase with HSA/FSA funds, expanding options for runners.
- Heart Rate Monitors: Accurate heart rate data is crucial for effective training, and Wahoo’s heart rate monitors are now covered.
- RPM Bike Cadence Sensors: These sensors help track pedaling speed, a key metric for cyclists.
This broad eligibility means that endurance athletes can significantly invest in their training setups using pre-tax dollars. Wahoo has partnered with Truemed to facilitate these transactions, making the process as seamless as any other online purchase.
Garmin’s HSA/FSA-Eligible Products
Garmin, known for its wide range of fitness and health wearables, also has a selection of products eligible for HSA/FSA purchase. While not all Garmin products are covered, several key items can be purchased with these funds:
- Index™ BPM Smart Blood Pressure Monitor: This FDA-cleared device measures blood pressure and heart rate, syncing with the Garmin Connect™ app for easy tracking and sharing with healthcare providers.
- Index™ S2 Smart Scale: This smart scale measures weight, body fat percentage, and other important metrics, helping users monitor their overall health.
- HRM-Fit™, HRM-Pro™ Plus, HRM-Dual™, and HRM-Swim™: These heart rate monitors provide detailed data for workouts and health tracking.
It is important to note that while Garmin heart rate monitors are eligible, Garmin watches are generally not eligible for HSA/FSA purchase unless you have a Letter of Medical Necessity (LMN).
Other Eligible Fitness Products
Beyond Wahoo and Garmin, several other brands have products that may qualify for HSA/FSA reimbursement. These include:
- Whoop: The Whoop wrist-based activity and wellness tracker, all Whoop memberships, and the Whoop Battery Pack are eligible.
- Oura: The Oura ring and memberships can also be purchased with HSA/FSA funds.
- COROS: Certain watches and heart rate monitors from COROS are eligible.
- Zwift: The Zwift Ride smart bike, and other hardware sold on the Zwift website, can be purchased with HSA/FSA funds.
Additionally, many other fitness-related items may qualify, including:
- Treadmills, stationary bikes, and ellipticals: These are generally eligible with a LMN.
- Massage guns and foam rollers: These recovery tools are often covered under HSA/FSA plans.
- Compression socks and athletic tape: These items are generally considered eligible for reimbursement.
- Electrolyte packs and muscle rubs: These are usually covered as well.
- Fitness Trackers: While fitness trackers like Fitbit or Apple Watch are generally not eligible on their own, they can be if prescribed by a doctor with a LMN.
The Role of a Letter of Medical Necessity (LMN)
While some products like heart rate monitors and blood pressure monitors are directly eligible for HSA/FSA purchases, many other fitness items, including exercise equipment and gym memberships, often require a Letter of Medical Necessity (LMN) from a doctor. An LMN demonstrates that the purchase is not for general fitness but for treating a specific medical condition.
An LMN may be necessary to purchase products such as:
- Fitness trackers and smartwatches not primarily designed for medical monitoring.
- Treadmills, exercise bikes, and other home fitness equipment.
- Gym memberships and fitness classes.
The IRS stipulates that expenses must be for the sole purpose of affecting a structure or function of the body or treating a diagnosed condition. This could include conditions like obesity, hypertension, or heart disease.
How to Purchase with HSA/FSA Funds
The process for using your HSA/FSA funds to purchase eligible fitness products is generally straightforward.
- Verify Eligibility: First, confirm that the product you want to purchase is eligible under your specific HSA/FSA plan.
- Shop from Approved Retailers: Many brands now offer direct HSA/FSA payment options through their websites, often in partnership with companies like Truemed.
- Use Your HSA/FSA Debit Card: If the retailer accepts it, use your HSA/FSA debit card at checkout.
- Submit for Reimbursement: If your card isn’t accepted, or if you paid out-of-pocket, you can submit your receipts to your plan administrator for reimbursement.
- Obtain an LMN (If Needed): If a Letter of Medical Necessity is required, obtain it from your doctor and submit it with your reimbursement request.
- Keep Records: Always keep copies of your receipts and any supporting documentation.
Maximizing Your HSA/FSA Benefits
To make the most of your HSA/FSA funds for fitness, consider these tips:
- Plan Ahead: Review your plan’s eligible expenses and plan your purchases accordingly.
- Use Funds Strategically: Prioritize purchases that will most significantly impact your health and fitness.
- Don’t Overlook Recovery: Remember to use your funds for recovery tools as well as workout equipment.
- Consider a Truemed partnership: Truemed partners with many brands to make the process easier.
- Stay Informed: Keep an eye on updates as more fitness products become HSA/FSA eligible.
Conclusion
The expanding eligibility of fitness products under HSA and FSA plans represents a positive shift in healthcare, recognizing the importance of preventative care and active health management. By leveraging these tax-advantaged accounts, you can invest in high-quality equipment and tools from brands like Wahoo and Garmin, potentially saving money while improving your overall well-being. As always, it is essential to verify eligibility with your specific plan and, when necessary, obtain a Letter of Medical Necessity from your doctor.
