Dexcom Stelo HSA FSA Eligibility Checklist (2026) | HSA

Confirm you are enrolled in an HSA-eligible High Deductible Health Plan (HDHP).

You cannot contribute to an HSA without an HDHP. Using existing HSA funds for Stelo is allowed, but you must have the account first. FSA users only need to be enrolled in their employer's plan.

Check that your HSA or FSA has sufficient funds for the purchase.

Dexcom notes reimbursement depends on your account's available balance. An overdraft or failed reimbursement can happen if you don't verify funds first, especially with FSA use-it-or-lose-it rules.

Verify you are in the intended user group: 18+ and not on insulin.

Stelo is indicated for adults not using insulin and excludes those with problematic hypoglycemia. Using HSA funds for a product clearly outside its intended use increases audit risk.

Contact your HSA provider or FSA plan administrator to ask about OTC purchase rules.

Some plans require pre-approval for certain OTC items, specific receipts, or use of a designated payment card. A 5-minute call can clarify the exact process for your dexcom stelo hsa fsa eligibility.

Determine if your plan allows direct card payment or requires manual reimbursement.

This dictates your purchasing strategy. If manual reimbursement is required, you must pay with personal funds first and keep impeccable records.

Review your plan's documentation deadline for submitting expenses.

FSAs often have a strict deadline (like March 31 of the following year). Missing it means you lose the chance to get reimbursed for your Stelo purchase.

Bookmark Dexcom's official Stelo product page stating HSA/FSA eligibility.

This is your first line of evidence. Having the URL ready helps if your plan administrator questions the purchase. Print or save a PDF of the page for your records.

Save the FDA clearance announcement or news article citing Stelo as an OTC CGM.

This establishes Stelo as a legitimate medical device, not a general wellness product. The FDA clearance in 2024 is a key point differentiating it from non-eligible fitness trackers.

Note the product's intended use for prediabetes and type 2 diabetes not using insulin.

Aligning the purchase with a specific medical condition strengthens its status as a qualified expense. This context is important for your personal tax records.

Record the current pricing: $99 for a 2-sensor, 30-day supply or $89/month subscription.

Your receipt should match these public price points. A significant discrepancy might raise a flag with your administrator. Knowing the cost helps you budget your HSA/FSA funds.

Understand the sensor's 15-day wear time and the 77.9% full-duration reliability statistic.

If a sensor fails early (about 20% might), the cost of the replacement sensor is also likely eligible. Documenting failure can support additional reimbursement claims.

Check the IRS Publication 502 for current rules on diabetes care supplies.

While Stelo is new, IRS guidelines for blood sugar test kits and monitors set the precedent. Knowing this rule helps you argue eligibility if challenged.

Buy directly from Dexcom, a major pharmacy, or an authorized retailer.

Purchases from unauthorized third-party sellers on marketplaces may not generate acceptable receipts or could involve non-eligible bundled items, complicating reimbursement.

Ensure your receipt clearly states 'Dexcom Stelo Continuous Glucose Monitoring System'.

A vague receipt showing only 'medical supplies' or a SKU number is often rejected. The product name must be identifiable as an eligible device.

Choose a one-time purchase for your first claim instead of a subscription.

Subscription payments can be messy for reimbursement; you're paying for future deliveries. A one-time purchase is a clear, single expense that is easier to justify and document.

Use a personal credit/debit card if manual reimbursement is required.

Paying with a personal method creates a clear transaction record. Using the HSA/FSA card incorrectly when not allowed can lead to penalties and tax corrections.

If using an HSA/FSA card, verify the merchant category code is eligible.

Some cards may block transactions at certain retailers. A test purchase or call to your provider can prevent a declined transaction at checkout.

Save both the digital order confirmation and the final shipping receipt.

The order confirmation shows intent and product details; the shipping receipt proves delivery and finalizes the transaction date. Keep both in your tax file.

Submit your claim or receipt to your HSA/FSA administrator promptly.

Delaying submission increases the chance of losing the receipt or missing a plan deadline. Process it while the purchase details are fresh.

Include a note linking the expense to diabetes monitoring if required.

Some administrators ask for a Letter of Medical Necessity (LOMN). While not required for Stelo, a brief doctor's note can preemptively address any questions.

File the approved reimbursement confirmation with your tax documents.

This proves the expense was properly vetted and paid by your HSA/FSA. It is critical documentation if the IRS ever questions the transaction.

Keep all Stelo purchase records for at least 3 years after filing the relevant tax return.

The IRS typically has three years to audit a return. You need to be able to produce proof that the HSA distribution was for a qualified medical expense.

Log the purchase in your personal HSA/FSA tracking spreadsheet or app.

This helps you monitor annual contribution limits, track remaining funds, and have a quick summary of all medical expenses for tax planning.

Set a reminder to re-verify Stelo's eligibility status annually with the IRS list.

IRS qualified expense lists can change. A product eligible in 2024 might not be in 2026. Annual verification prevents unexpected tax liabilities.