Quick Answer: Yes. Crates Health is a legitimate company that helps you use your HSA/FSA funds for eligible wellness products - fully in compliance with IRS rules. Everything we do is grounded in IRS Publication 502, which defines what qualifies as a medical expense for tax-advantaged health accounts.
Why This Is Legal
The IRS allows you to use HSA and FSA funds for expenses that "diagnose, cure, mitigate, treat, or prevent disease" - as long as you have proper documentation. This isn't a loophole. It's how the tax code is designed to work.
Here's the key: many wellness products (gym memberships, fitness trackers, supplements) can serve both personal and medical purposes. The IRS calls these "dual-purpose items." To use HSA/FSA funds for them, you need a Letter of Medical Necessity (LMN) from a licensed healthcare provider that connects the product to a specific health condition.
That's exactly what Crates provides - licensed medical professionals who review your health profile and issue LMNs when clinically appropriate.
What the IRS Actually Says
From IRS Publication 502 (the official guide to medical expense deductions):
"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."
And from the IRS FAQ on Nutrition, Wellness, and General Health (March 2023):
Gym memberships are eligible "if the membership was purchased for the sole purpose of affecting a structure or function of the body... or treating a specific disease diagnosed by a physician."
Nutritional supplements are eligible "if recommended by a medical practitioner as treatment for a specific medical condition diagnosed by a physician."
Crates doesn't create new rules - we help you follow existing ones.
About Our Medical Team
Every LMN issued through Crates is reviewed by a licensed healthcare provider - not auto-generated by software. Our providers:
Hold active medical licenses (MD, DO, PA, NP)
Review your individual health profile
Only issue LMNs when clinically appropriate (not everyone qualifies)
Include specific diagnoses and ICD-10 codes
Follow IRS guidelines for what an LMN must contain
About Crates Health
Crates Health was founded by Anchor Ebanks, a Harvard Business School graduate who previously spent nearly a decade at Google, YouTube, and Deloitte. He's also an AI research fellow at the Berkman Klein Center for Internet & Society at Harvard, focused on healthcare access.
Crates has been featured in Yahoo Finance, The American Journal of Healthcare Strategy, and other publications.
What If My HSA/FSA Admin Questions a Claim?
If your admin ever asks for documentation, you'll have everything you need:
Your Letter of Medical Necessity from a licensed provider
Your itemized receipt from the retailer
A clear connection between your health condition and the product
If a claim is ever denied, our in-house claims team will work with you to provide additional documentation or appeal the decision. We've got your back.
What Crates Is NOT
To be clear:
We don't provide medical advice. Our providers issue LMNs, not treatment plans.
We don't provide tax advice. For specific tax questions, please consult your tax advisor.
We don't guarantee your admin will approve every claim. Different admins have different requirements, and we help you navigate them.
Related Articles
Still Need Help?
Chat with us using the widget in the bottom-right corner or email us at [email protected]. We're here to help!