Medicare and Diabetic Supplies: Can You Sell Them?

This is the number one question we receive from sellers: "Can I sell diabetic supplies that were paid for by Medicare?" The short answer is no — and here's why.

What Federal Law Says

Under 42 U.S.C. § 1320a-7b (the Anti-Kickback Statute and related provisions), it is illegal to sell, transfer, or otherwise dispose of items that were paid for by a federal health care program. This includes Medicare, Medicaid, CHIP, and other federal programs.

Doing so can result in:

• Criminal prosecution and fines up to $25,000 per violation
• Civil monetary penalties
• Exclusion from federal health programs
• Potential imprisonment

What This Means Practically

If Medicare or Medicaid paid for your test strips, sensors, or other diabetic supplies — even partially — you cannot legally sell them. This applies even if you have an excessive supply and have never opened the boxes.

When You CAN Sell

You can legally sell diabetic supplies when:

• You paid for them out of pocket (cash or debit/credit card)
• They were covered by a private insurance plan (not government-funded)
• You received them as a gift from someone who meets the above criteria

How to Know How Your Supplies Were Paid For

Check your Explanation of Benefits (EOB) from your insurance provider. If the payer is Medicare, Medicaid, or any government program, do not sell those supplies.

If you paid at a pharmacy with your own money and have a receipt showing no insurance involvement, those supplies are eligible for resale.

Our Compliance Requirement

At Surplus Rx, all sellers must affirmatively confirm before submitting any order that their supplies were not purchased with Medicare, Medicaid, or any federal program funds. This protects both you and us.

If you're unsure, please don't sell. Contact us and we can help you understand your options.