2026 Legal Guide

Is It Legal to Sell
Diabetic Test Strips?

Yes — selling unused diabetic supplies is completely legal in all 50 US states, with one important exception: supplies funded by Medicare or Medicaid cannot be resold under federal law. Everything else you need to know is on this page.

Sell My Supplies Now How It Works

The Short Answer

Yes. It is completely legal to sell unused diabetic test strips and other diabetic supplies in the United States.

The FDA does not prohibit the private resale of legally purchased medical devices. You have the legal right to sell personal property you own, including diabetic supplies. The sole exception is supplies funded by Medicare, Medicaid, or other federal healthcare programs — those cannot legally be resold. If your supplies were purchased out-of-pocket or through private insurance, you are free to sell them.

The Federal Law

The U.S. Food and Drug Administration (FDA) regulates the manufacturing, labeling, and initial commercial sale of medical devices, including diabetic test strips and CGM sensors. However, the FDA does not prohibit individuals from reselling legally purchased medical devices they own.

This means that if you legally purchased diabetic supplies — whether out-of-pocket at a pharmacy, through private health insurance, or as a gift from someone who purchased them privately — you are legally permitted to resell them. This is the same legal principle that allows people to sell used electronics, books, clothing, and other consumer goods.

The FDA's primary jurisdiction covers commercial manufacturers and distributors, not individual sellers reselling their own legally obtained property. There is no federal statute that criminalizes the private resale of diabetic test strips, CGM sensors, insulin pump supplies, or lancets that were legally purchased.

Key principle: Under US property law, when you legally purchase goods, you generally have the right to resell them. This doctrine, known in intellectual property contexts as "first sale doctrine," reflects a broader legal principle that a lawful purchaser of an item may resell that item.

The One Exception: Medicare and Medicaid

Reselling supplies funded by Medicare or Medicaid is a federal crime.

Under 42 U.S.C. § 1320a-7b (the federal anti-kickback statute and related healthcare fraud provisions), it is illegal to sell, offer, or transfer medical supplies that were obtained at government expense through Medicare, Medicaid, CHIP, or other federal healthcare programs. This law exists to prevent fraud against federal healthcare programs.

Applies to ALL supplies covered by Medicare Part B or Medicaid
Applies even if you received the supplies for free or at a copay
Criminal penalties can include fines and imprisonment

How to know if your supplies were Medicare/Medicaid-funded:

You receive a Medicare Summary Notice (MSN) or Explanation of Benefits (EOB) showing the supplies were billed to Medicare or Medicaid
A durable medical equipment (DME) supplier delivered the supplies and billed Medicare directly
You paid little or nothing for the supplies through a government health plan

When in doubt, do not sell. Contact your insurer or DME provider to confirm the payment source before selling any supplies.

All 50 States

State Laws: Is It Legal Across the US?

No US state has passed a law specifically prohibiting the private resale of unused diabetic supplies that were legally purchased. The legal landscape for selling diabetic supplies is governed primarily by federal law, and at the federal level, the only prohibition is the Medicare/Medicaid rule described above.

Some states have general laws regulating the commercial distribution of medical devices, but these apply to businesses engaged in the commercial distribution of devices — not to individuals selling their own legally obtained supplies. In all 50 states, selling factory-sealed, privately purchased diabetic test strips, CGM sensors, or other diabetic supplies is a legally permissible private transaction.

Bottom line: Whether you are in Texas, California, New York, Florida, or any other state, selling unused diabetic supplies you legally own is permitted — provided they were not funded by Medicare or Medicaid.

Legal Checklist

What Makes a Sale of Diabetic Supplies Legal

Supplies were purchased out-of-pocket by you

Supplies were covered by private health insurance

Supplies are in original, factory-sealed packaging

You are the original purchaser of the supplies

Supplies are NOT funded by Medicare or Medicaid

Supplies are NOT from any federal healthcare program

Supplies funded by Medicare Part B — illegal to sell

Supplies obtained through Medicaid programs — illegal to sell

Our Process

How Surplus Rx Ensures Full Legal Compliance

Seller Certification Required

Every seller must confirm — before completing their transaction — that their supplies were not purchased or funded by Medicare, Medicaid, or any federal healthcare program. This certification is part of our quote submission process.

Original Sealed Packaging Only

We accept only factory-sealed, completely unopened supplies. This requirement helps ensure supplies are in their original state as purchased and have not been tampered with or transferred from federal program packaging.

No Resale of Opened Items

We do not accept any open packages or partial units. This policy ensures that every item we purchase represents a legitimate private sale of intact, unopened supplies.

Identity Verification for Large Transactions

For large-volume transactions, we may request additional verification to ensure compliance with applicable laws and to confirm the legitimacy of the transaction.

Full Compliance with Federal and State Law

Surplus Rx operates in full compliance with all applicable US federal and state laws. Our legal team reviews our processes regularly to ensure ongoing compliance.