Selling diabetic test strips is legal in most cases, provided the strips are yours, still sealed, unexpired, authorized for sale in the United States, and were not paid for by Medicare, Medicaid, or another government healthcare program. Strips obtained through those programs are the main thing that turns a routine resale into a federal crime. Everything else is a matter of condition, source, state rules, and taxes.
Strips From Medicare, Medicaid, or TRICARE Are Off Limits
The clearest prohibition involves test strips obtained through Medicare, Medicaid, TRICARE, or any other federal healthcare program. Reselling those strips is a federal crime. Packaging on government-program strips usually carries markings showing they were paid for with federal funds, which makes them identifiable to investigators and to buyers.
Under 18 U.S.C. § 1347, anyone who executes a scheme to defraud a healthcare benefit program faces up to 10 years in prison. If the fraud results in serious bodily injury, the maximum rises to 20 years. If someone dies as a result, the sentence can be life.1Office of the Law Revision Counsel. 18 USC 1347 – Health Care Fraud
A second statute, 42 U.S.C. § 1320a-7b, targets trafficking in items connected to federal health programs. Violations carry up to 10 years in prison and fines reaching $500,000 for individuals or $1,000,000 for corporations. The HHS Office of Inspector General investigates these cases and can add civil monetary penalties and exclusion from federal healthcare programs on top of any criminal sentence.2Office of Inspector General. Fraud and Abuse Laws
If your strips came through any government-funded program, don’t sell them. This is not a gray area.
Strips You Shouldn’t Sell Even If You Bought Them Yourself
Being the lawful owner of a box of strips isn’t enough on its own. Certain categories of strips create legal exposure or real safety risk regardless of how you got them.
Expired Strips
FDA labeling regulations require in vitro diagnostic devices like test strips to carry expiration dates under 21 CFR 809.10, and selling a product past that date creates potential liability. The FDA has warned that expired strips can produce inaccurate readings, which can lead someone to take too much or too little medication, potentially causing serious injury or death.3U.S. Food and Drug Administration. FDA Warns About Risks of Using Home Use Test Strips That Are Pre-Owned or Not Authorized for Sale in U.S. Major platforms also prohibit expired healthcare listings.
Opened, Tampered, or Previously Used Strips
Once a vial or foil pack has been opened, humidity, temperature, and contamination can affect the strips inside. The FDA has specifically warned that pre-owned strips may contain small amounts of blood from a previous user, exposing the next person to infection risk.3U.S. Food and Drug Administration. FDA Warns About Risks of Using Home Use Test Strips That Are Pre-Owned or Not Authorized for Sale in U.S. Sealed, original packaging is the baseline.
Strips Not Authorized for the U.S. Market
Test strips made for sale in other countries have not been reviewed or authorized by the FDA and may differ in formulation, calibration, or quality control from the domestic version. The FDA notes that prescription-only strips being offered without a prescription is a red flag that the product may be unauthorized for U.S. sale, and recommends buying only from a local pharmacy or directly through the manufacturer.4U.S. Food and Drug Administration. Blood Glucose Monitoring Devices
State Rules and the One-Time Seller vs. Regular Business Line
Federal law isn’t the whole picture. Many states regulate the resale of medical devices, and the rules vary widely. Some states require test strips sold by retail establishments to be sourced directly from the manufacturer or an authorized distributor. Some require a medical device wholesaler or distributor license for anyone engaged in regular resale. Others restrict who can purchase these items in the first place.
The practical line most state laws draw is between a one-time sale of your own surplus and an ongoing resale business. Offloading a few unopened boxes you no longer need generally sits in a very different legal position from operating as a regular seller, and licensing requirements typically target the latter. Before selling with any regularity, check your state’s medical device distribution laws.
Platform Rules Where Sales Actually Happen
Most secondhand test strip sales run through online platforms. The FDA has noted that pre-owned or unauthorized strips appear on marketplaces like Amazon, eBay, and Craigslist, along with direct seller websites, and dedicated buying sites that purchase unused strips from consumers have grown alongside them.3U.S. Food and Drug Administration. FDA Warns About Risks of Using Home Use Test Strips That Are Pre-Owned or Not Authorized for Sale in U.S.
Each platform sets its own policy on top of the law. eBay, for example, permits diabetic test strip listings but requires a clearly marked expiration date and delivery to the buyer before the strips expire. Violating a platform’s medical device or healthcare policy can cost you your account on top of anything the law does. Read the relevant policy before you list.
Reporting the Income at Tax Time
Money you make selling test strips is taxable. The IRS treats the sale of personal medical supplies the way it treats selling other personal property. If you originally deducted the strips’ cost as a medical expense on Schedule A, the portion of the sale price above your adjusted basis is a taxable gain, split between ordinary income (recovering the prior deduction) and capital gain (anything above that).5Internal Revenue Service. Publication 502 (2025) – Medical and Dental Expenses
Form 1099-K reporting from platforms and payment processors kicks in at a specific threshold. For 2026, third-party settlement organizations must file a 1099-K only when a seller’s gross payments exceed $20,000 and the number of transactions exceeds 200.6Internal Revenue Service. IRS Issues FAQs on Form 1099-K Threshold Under the One Big Beautiful Bill Falling below the threshold doesn’t make the income tax-free. You still owe tax on the profit; the platform simply isn’t required to report it. If sales are a regular activity generating consistent income, reporting on Schedule C as self-employment income is the safest approach.
A Short Checklist Before You List
The strips are your own, bought with your own money, and not paid for by Medicare, Medicaid, TRICARE, or any other federal program. They are unexpired. The packaging is sealed and untampered. They are the U.S.-authorized version, not a foreign import. You know your state’s rule on medical device resale, especially if you plan to keep selling. You’ll report what you earn at tax time. Clear all six and selling is legal; miss any of them and you’re either breaking a law or putting a buyer at risk.