| 2024 FSA Contribution Limit | $3,200 |
| 2024 FSA Rollover Max | $610 |
| Grace Period (if offered) | 2.5 months post-deadline |
| HSA Contribution Limit (single) | $4,150 |
| Typical CGM Sensor Cost (3-month) | $150β$300 OOP |
| Average Forfeited FSA Balance | $400+/year |
Key Takeaways
- Most FSA accounts expire December 31 β unused funds are forfeited
- All major diabetes supplies are FSA-eligible without a prescription
- Stocking up on CGMs, test strips, and insulin syringes is a smart year-end move
- Some plans offer a 2.5-month grace period or $610 rollover (2024 limit)
What Is an FSA and Why Does the Deadline Matter?
A Flexible Spending Account (FSA) is an employer-sponsored benefit that lets you set aside pre-tax dollars for qualified medical expenses. The critical catch: most FSAs operate on a "use it or lose it" basis, resetting every December 31. The average forfeited FSA balance is over $400 per year β money that could have been spent on essential diabetes supplies.
FSA-Eligible Diabetes Supplies
Continuous Glucose Monitors (CGMs)
CGM systems like the Dexcom G7 and FreeStyle Libre 3 are fully FSA-eligible. Sensors, transmitters, and reader devices all qualify. A 3-month supply of sensors can cost $150β$300 out of pocket, making year-end purchasing ideal.
Blood Glucose Meters and Test Strips
Traditional BGMs and test strips remain FSA-eligible and cost-effective. Stocking 3β6 months of strips before year-end maximizes savings. MDS Diabetes offers a wide selection of FSA-eligible meters and strips at competitive prices.
Insulin Delivery Supplies
- Insulin syringes and pen needles
- Insulin pump supplies (infusion sets, reservoirs, insertion devices)
- Lancets and lancing devices
Additional Eligible Items
- Diabetes logbooks and management apps (some)
- Diabetic socks and footwear (with prescription)
- Ketone test strips
- Glucose tablets and gels
Smart Year-End FSA Spending Strategy
Step 1: Check Your Remaining Balance
Log into your FSA portal or call your benefits administrator to confirm your exact remaining balance and deadline type (run-out, grace period, or rollover).
Step 2: Estimate 3β6 Month Supply Needs
Calculate how much you use monthly and multiply by 3β6 months. Diabetes supplies have long shelf lives, making bulk purchases practical.
Step 3: Prioritize High-Cost Items First
CGM sensors and insulin pump supplies offer the greatest savings. Use remaining funds on consumables like test strips and lancets.
FSA vs. HSA: Key Differences
| Feature | FSA | HSA |
|---|---|---|
| Rollover | Limited or none | Full rollover |
| Deadline pressure | High | None |
| Eligibility | Any employer plan | HDHP only |
| 2024 contribution limit | $3,200 | $4,150 single |
Where to Buy FSA-Eligible Diabetes Supplies
MDS Diabetes (mdsdiabetes.com) stocks a comprehensive range of FSA-eligible diabetes supplies including CGM sensors, test strips, pen needles, lancets, and pump supplies. All eligible products are clearly marked, making it easy to spend your FSA balance before the deadline.