💡 Quick Answer: Peloton is HSA/FSA eligible because it helps prevent, manage, and reverse a variety of health conditions including cardiovascular disease, obesity, and depression, and many others. According to IRS Publication 502, all you need is a Letter of Medical Necessity.
Luckily, we make it ridiculously simple. Crates Health is the fastest way to get your personalized and compliant letter for Peloton and thousands of other wellness products, plus we handle your reimbursements directly through our platform with just one click.
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What is Peloton
Peloton is the connected fitness platform that turned home workouts into a cultural phenomenon and honestly, made sweating at home cooler than going to the gym. Think of it as having a boutique fitness studio, personal trainer, and motivational squad all streaming through a sleek touchscreen while you work out in your living room. With the iconic Bike ($1,445), the upgraded Bike+ ($2,495), the Tread ($2,995), and the premium Tread+ ($5,995), Peloton offers equipment that’s engineered to make you actually want to exercise.
What makes Peloton different isn’t just the hardware, it’s the experience. The All-Access Membership ($44/month) unlocks thousands of live and on-demand classes across cycling, running, strength, yoga, meditation, and more. You’re not just following along with an instructor; you’re competing on the leaderboard, getting shoutouts during live classes, and becoming part of a community that celebrates your PRs like they’re Olympic medals. Whether you’re crushing a 45-minute climb with Robin Arzón at 6 AM or taking a recovery ride with Cody Rigsby while he dishes about pop culture, Peloton has mastered the art of making fitness addictive. Plus, with features like auto-resistance on the Bike+ and the Tread’s shock-absorbing slat belt, the technology actually enhances your workout rather than just tracking it.
Why Peloton Qualifies for HSA/FSA
According to IRS regulations, gym memberships can qualify as eligible medical expenses with a Letter of Medical Necessity under specific circumstances outlined in Publication 502.
IRS Publication 502 states that medical expenses are “the costs of diagnosis, cure, mitigation, treatment, or prevention of disease, and for the purpose of affecting any part or function of the body,” but “must be primarily to alleviate or prevent a physical or mental condition or illness.”
This means Peloton equipment and membership can qualify for HSA/FSA reimbursement for prevention or treatment of:
- Cardiovascular disease and hypertension
- Obesity and weight management disorders
- Type 2 diabetes
- Depression and anxiety disorders
- Chronic stress and sleep disorders
- ADHD and attention disorders
- Osteoporosis and bone density issues
- Musculoskeletal conditions requiring physical therapy
The key requirement is that your healthcare provider must note the exercise equipment and connected fitness platform as medically necessary for managing your specific health condition, not just for general wellness. This documentation comes in the form of a Letter of Medical Necessity (LMN).
How to Assess Your Eligibility
Traditional Route: Schedule an appointment with your primary care physician, discuss your health conditions and fitness goals, and request a Letter of Medical Necessity if exercise is recommended as part of your treatment plan. This typically requires an office visit, potential wait times, and can cost $50-100+ depending on your insurance.
Faster, Smarter Route: Use Crates Health to get your Letter of Medical Necessity online in just a few minutes. Our platform connects you with licensed healthcare providers who can evaluate your conditions remotely and issue the appropriate documentation if you qualify. No office visits, no waiting weeks for appointments, and no surprise medical bills.
Frequently Asked Questions
Do other connected fitness equipment and subscriptions qualify for HSA/FSA?
Absolutely! With the right medical documentation, you can potentially use HSA/FSA funds for other smart fitness equipment, exercise bikes, treadmills, fitness apps, and streaming workout subscriptions, as long as they’re recommended for treating specific medical conditions.
How does reimbursement work?
Some retailers accept HSA/FSA cards (most don’t though). When they don’t, you need to use your personal card and then reimburse yourself. This means finding and storing receipts and then uploading them and your LMN to your HSA/FSA admin portal. With Crates, we make this process simple: upload your receipt and get one-click reimbursements all from our platform.
What is a Letter of Medical Necessity?
A Letter of Medical Necessity (LMN) is a document from a licensed healthcare provider that explains why a specific expense like your Peloton equipment and membership is medically necessary for treating a diagnosed condition. It’s the official paperwork that proves your connected fitness platform isn’t just for general wellness. Each LMN typically remains valid for 12 months from the date of issue.
Will my claim get denied?
Every HSA/FSA admin is unique and may initially deny some claims. Usually, it is related to receipt format (must be itemized), LMN format, or other supporting documentation. With Crates, we will support you through this process and make sure you get your money back.
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