FSA year-end spending checklist for diabetics

FSA Year-End Spending Checklist for Diabetics

Flexible Spending Accounts (FSAs) are powerful tax-advantaged tools — but they come with a critical catch: most funds expire at year's end. For people managing diabetes, the final weeks of the plan year represent a prime opportunity to stock up on essential supplies, address deferred healthcare needs, and stretch every pre-tax dollar. This checklist ensures you don't leave money on the table.

Understanding FSA Deadlines

Most FSA plans follow a calendar year (January–December), though employer plans vary. Key dates to know:

• Spend-down deadline: Typically December 31
• Grace period: Some plans offer a 2.5-month extension (until March 15)
• Rollover option: Certain plans allow rolling over up to $640 (2024 IRS limit) into the next year
• Run-out period: Many plans allow claims submission for 60–90 days after the plan year ends

Check with your HR department or FSA administrator immediately to confirm your specific deadlines and rules.

Diabetes-Specific FSA Spending Checklist

1. Continuous Glucose Monitors (CGMs) and Supplies

CGM sensors, transmitters, and receivers are FSA-eligible. If you're due for a sensor upgrade or running low on supplies, now is the time to reorder. Devices like the Dexcom G7 or FreeStyle Libre 3 systems and their associated sensors qualify.

2. Blood Glucose Meters and Test Strips

Stock up on test strips, lancets, lancing devices, and replacement glucose meters. These are among the most straightforward FSA-eligible diabetes expenses. MDS Diabetes carries a wide selection of FSA-eligible meters and strips at mdsdiabetes.com — ideal for year-end restocking.

3. Insulin and Prescription Medications

Insulin is FSA-eligible whether it's rapid-acting, long-acting, or premixed. Use remaining funds to fill a 90-day supply if your plan allows. Other prescription diabetes medications — metformin, GLP-1 agonists, SGLT2 inhibitors — also qualify.

4. Insulin Delivery Supplies

• Insulin syringes and pen needles
• Insulin pump supplies (infusion sets, reservoirs, cartridges)
• Insulin pump itself (FSA-eligible as a durable medical device)
• Insulin cooling cases and travel pouches

5. Diabetes Footcare

Diabetic foot health is critical and often overlooked at year's end. FSA-eligible footcare items include:

• Therapeutic diabetic socks and compression stockings (with a Letter of Medical Necessity in some cases)
• Orthotic insoles prescribed for diabetic foot conditions
• Prescription footwear
• Antifungal creams and wound care products

6. Medical Appointments and Lab Tests

Schedule your A1C test, annual dilated eye exam, podiatry visit, and diabetes educator consultation before year-end. Copays and deductibles for these visits are FSA-reimbursable.

7. Over-the-Counter Items (Now Broadly Eligible Post-CARES Act)

8. Mental Health Support

Diabetes distress and burnout are real. Copays for therapist visits, psychologist sessions, and telehealth mental health appointments are FSA-eligible. Don't neglect this category at year's end.

Tips for Smart Year-End FSA Spending

• Check your balance now: Log into your FSA portal and confirm your exact remaining balance.
• Order online early: Shipping delays in December are common. Order from trusted retailers like MDS Diabetes (mdsdiabetes.com) well before the 31st.
• Save all receipts: Even for FSA-card purchases, keep itemized receipts in case of audit.
• Avoid non-eligible purchases: Vitamins, gym memberships, and cosmetic items are not reimbursable and can trigger repayment demands.
• Use the FSA Store: Curated FSA-eligible product lists remove the guesswork.

Key Takeaways

• Most FSA funds expire December 31 — act before the deadline.
• CGMs, test strips, insulin, pump supplies, and footcare are all FSA-eligible.
• The CARES Act expanded OTC eligibility, including glucose tablets and ketone strips.
• Schedule end-of-year medical appointments to use FSA funds on copays.
• MDS Diabetes offers FSA-eligible diabetes supplies with fast shipping to help you spend wisely before the deadline.

Frequently Asked Questions

Are CGM sensors FSA-eligible?

Yes. CGM sensors, transmitters, and receivers are fully FSA-eligible as medical devices used to manage diabetes.

Can I use my FSA for insulin without a prescription?

Yes. Following the CARES Act of 2020, insulin is FSA-eligible without a prescription requirement at the federal level, though some states may vary.

What happens to unused FSA funds after December 31?

Unless your plan has a grace period or rollover provision, unused funds are forfeited. Check with your FSA administrator for your specific plan rules.

Are diabetic shoes covered by FSA?

Prescription diabetic shoes and custom orthotics are generally FSA-eligible. Standard retail footwear, even marketed for diabetics, may require a Letter of Medical Necessity.

Can I buy diabetes supplies from MDS Diabetes with my FSA card?

Yes. Many FSA-eligible diabetes products available at mdsdiabetes.com can be purchased directly with your FSA debit card. Always save your itemized receipt for your records.