You may be able to use HSA funds to buy your next bike

If you have a Health Savings Account (HSA) or a Healthcare Flexible Spending Account (FSA), you might just be able to use those funds to purchase a new bike. Truemed has partnered with select bike brands and retailers, including Canyon, Ari, and BikesOnline, to offer HSA or FSA as a payment option at checkout, which could save buyers 30%, depending on their tax situation.

What’s an HSA?

In the United States, HSA and FSA programs allow holders to contribute pre-tax dollars throughout the year to be applied toward qualified medical expenses. These accounts are tax advantaged since contributions are considered pre-tax money. There are limits to how much savers can contribute, and in the case of FSAs, funds typically do not roll over year to year, forcing account holders to “use it or lose it.”

Qualified medical expenses, according to the IRS, can include the costs of equipment for the purpose of “diagnosis, cure, mitigation, treatment, or prevention of disease.” IRS Publication 502 goes on to state, “Medical care expenses must be primarily to alleviate or prevent a physical or mental disability or illness. They don’t include expenses that are merely beneficial to general health, such as vitamins or a vacation.”

HSA plans are available to individuals and families enrolled in a high-deductible health plan, while FSA plans are only offered through an employer.

The idea of using HSA funds to pay for fitness equipment that directly supports patient health is not a new one. In a 2015 article, Singletracks contributor Chris Daniels wrote, “Imagine a world where pediatricians prescribe Rockhoppers instead of Ritalin, or the day you purchase your dream bike with a health savings account.”

Qualified buyers can use HSA funds to buy a bike

To use HSA funds to purchase a bike on a Truemed partner website, buyers simply add a bike to their cart and choose HSA / FSA for their payment. Buyers then fill out a brief health survey, which a licensed physician will review to determine whether the purchase meets the eligibility criteria. Alternatively, you could request a Letter of Medical Necessity from your own doctor and purchase the bike anywhere you like, even your local bike shop.

“As someone with a qualifying medical condition, this is a game-changer for purchasing a bike,” Singletracks reader Scott Jensen told me over email. “With [FSAs] only good for a year, it may not buy the whole bike, but it would certainly put a dent in the cost.”

Because savings account contributions are considered pre-tax funds, they are not subject to state or federal income taxes. On average, that advantage alone saves account holders about 30% compared to using taxable income for a purchase. For FSA account holders in particular, when faced with a use-it-or-lose-it situation at the end of the year, it’s almost like free money.

Truemed says buyers typically qualify if they are “working to mitigate, treat, or reverse a health condition such as depression, anxiety, chronic fatigue, insomnia, obesity, infertility, diabetes, or heart disease.” Upon approval, Truemed provides a Letter of Medical Necessity, which allows account holders to reimburse themselves with HSA or FSA funds.

Both the Canyon and BikesOnline websites highlight a selection of bikes they suggest are “approved” for HSA fund purchases. However, a quick check shows buyers can select the HSA option for most bikes, though it’s unclear if certain types of bikes are more likely to be approved than others.

Mountain bikers have always known that riding is good for our health, both physical and mental. A Letter of Medical Necessity just makes it official.