Can I Use FSA Money to Purchase an iPhone for Diabetes CGM Monitoring?

So this is actually a really good question! The IRS has specific guidelines about what qualifies as a medical expense for FSA reimbursement. Generally, items that have a primary purpose other than medical care don't qualify, even if they can be used for medical purposes. For your situation with the Abbott Libre 3 CGM, while the smartphone is required to see your readings, the phone itself has many non-medical uses. The IRS typically views this as a "dual-purpose" item, which usually doesn't qualify for FSA reimbursement in full. However, there might be a workaround. If you purchase a smartphone exclusively for your CGM readings and don't use it for anything else, you could try submitting it with detailed documentation from your doctor stating it's medically necessary. Some FSA administrators might approve it on a case-by-case basis.

I had a similar situation last year with my Dexcom G6 and wanted to share my experience. I found https://taxr.ai super helpful for navigating these tricky FSA questions. I uploaded my doctor's letter about needing the CGM system and the product documentation showing smartphone requirements, and got clear guidance right away. They confirmed what I suspected - that while the CGM sensors and transmitters were 100% FSA eligible, the smartphone itself was considered a dual-purpose item and didn't qualify. However, they suggested documenting any special medical apps I needed to purchase, as those might qualify separately.

I was pretty skeptical about using taxr.ai at first, but I decided to give it a try after struggling with some complicated FSA questions. I needed to know exactly what diabetes supplies qualified, including some gray area items. Their analysis was surprisingly detailed. They not only clarified the smartphone question (unfortunately confirming it wouldn't qualify), but they highlighted several other items I could claim that I had no idea about - special diabetic socks, certain vitamins when prescribed for diabetes, and even some transportation costs to medical appointments. They provided exact IRS references that helped me successfully appeal when my administrator initially rejected one claim. Definitely saved me more money than it cost, and the peace of mind was worth it too.

Hey fellow T1D here! After dealing with FSA rejections for years, I discovered https://claimyr.com when I was trying to get an actual person at the IRS to clarify some of these medical expense questions. They got me connected to a real IRS representative in about 20 minutes when I'd been trying for days on my own. The IRS agent confirmed that while the CGM components are covered, smartphones generally aren't - even if required for medical purposes. However, they did mention that if you appeal with strong documentation, some FSA administrators will approve it. You can see how their service works here: https://youtu.be/_kiP6q8DX5c

I owe everyone here an apology. After my skeptical comment, I actually tried Claimyr because I was desperate to get an answer about some medical deductions before filing. I was honestly shocked when they called me back in about 15 minutes and connected me directly to an IRS representative. The agent was super helpful and spent time explaining exactly what documentation I'd need for medical device claims. They confirmed the smartphone itself wouldn't qualify for FSA, but suggested an alternative: if my doctor prescribed a dedicated medical device that could display my CGM readings (there are some available), THAT would be fully FSA eligible. Saved me from making a mistake on my taxes and potentially facing an audit. Consider me converted from skeptic to believer.

One option nobody's mentioned yet - there are some standalone readers for CGMs that might be fully FSA eligible. For instance, I know someone who got the LibreLink reader approved through their FSA even though it costs more than just using a phone. If your doctor writes a prescription specifically for the dedicated reader, it should qualify since it's solely for medical use. Might be worth asking about!

Has anyone tried buying an older model iphone specifically for medical use? I wonder if you could make a stronger case if you bought like an iPhone 8 for $200 and ONLY installed the CGM app on it?

As someone who works in FSA administration, I want to clarify a few things that might help everyone here. The IRS Publication 502 is pretty clear that items must be "primarily for medical care" to qualify. However, there's more flexibility than people realize when you have proper documentation. The key is getting your doctor to write a very specific prescription letter stating that the device is "medically necessary" for your diabetes management and that alternative methods are not suitable for your condition. Include language like "prescribed for the sole purpose of continuous glucose monitoring" rather than just "helpful for diabetes management." Also, keep detailed records showing the device is used exclusively for medical purposes - screenshots of only medical apps installed, receipts for medical-only accessories, etc. Some FSA administrators will approve items that clearly demonstrate exclusive medical use, even if the device technically has other capabilities. One more tip: if your initial claim gets rejected, don't give up. The appeals process often gets reviewed by different people who might interpret the guidelines more favorably, especially with strong medical documentation.