Tech-based healthcare devices are all the rage, but here’s what you may not know: If you have a Flexible Spending Account (FSA) for out-of-pocket medical expenses, you may be able to use that money to purchase a wide range of high-tech healthcare items.
What is a Flexible Spending Account?
An FSA is money you can set aside to cover healthcare expenses such as copays, deductibles and some medications.
What’s special about an FSA is that you don’t pay taxes on the money in the account. And no payroll tax means more money in your paycheck — about 30% more on average — and less taxable income. You can also use the money for eligible expenses for your partner (if you are married) and dependents.
How does a flexible spending account work?
You enroll in an FSA during open enrollment or when joining the health insurance marketplace or when looking for a new job. You decide how much you want to contribute to the account (up to a maximum of $3,400 per person for 2026) based on how much you think you will spend on medical, dental, vision and health-related expenses that year.
From there, the entire amount is available to you, but will be deducted from your paycheck throughout the year before taxes are deducted. Depending on your FSA, you may have an FSA debit card or may be asked to submit receipts for reimbursement.
Tech-tastic FSA approved items
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Most of us associate FSA with basic things like copays, prescriptions, glasses, and health-related items like ibuprofen and acne cream. You know, boring stuff.
But there are a surprising number of technology-based health devices you can also buy with your tax-free money.
- Smart glasses: If you need prescription glasses to see, you can buy smart glasses and use AI to monitor your health and fitness status in real time, among other things.
- Rings: These wearables can help manage, monitor and even diagnose health problems such as irregular heart rhythm (AF) and sleep disorders. Depending on the model, you may be able to track menstrual and ovulation cycles, as well as other data specific to women’s health.
- Health bands: Health bands go beyond the basic steps of a fitness tracker to provide deeper insights into biometrics, cardiovascular health, recovery and general data that you can share with your healthcare provider (HCP) and use in everyday health decisions.
Other standout tech-inspired items include blood pressure monitors that connect to smart devices, red light therapy devices for skin care and oral health—even toothbrushes with high-resolution cameras so you can find problem areas for healthier gums.
FSA-approved technologically advanced tools for women’s health include:
- Fertility tracker
- Help against hot flashes
- Devices for menstrual cramps
Read: Period pain meets innovation: New devices interrupt menstrual cramps >>
What makes an item FSA eligible?
The IRS sets the guidelines for what is considered medical necessity and FSA eligible. Before purchasing, check the list of eligible items.
Some items may require a Certificate of Medical Necessity, which your HCP must complete before determining whether the product is eligible to be purchased with FSA funds.
The increase in eligible technology-based items on the list is a good reminder that there are innovative tools that can make a big difference in the way we manage our health.
It’s not just Band-Aids: You can also use your FSA for health tech
For most of us, it is difficult to prioritize our own health between work, family, caregiving and an endless to-do list. But a little technology can go a long way in supporting health goals and detecting potential health problems early when they are easier to treat.
Are you using your FSA to get the latest innovations in health technology? Great investment.
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