Bill would allow flexible spending plan funds to be used to purchase supplements

A bill to make dietary supplements eligible for purchase with tax-advantaged funds has been reintroduced in the U.S. Senate. It joins a similar bill currently before the House.

The bill, introduced by Sen. Kevin Cramer, Republican of South Dakota, would amend the Internal Revenue Code to allow funds from health savings accounts (HSAs), flexible spending accounts (FSAs) and Health reimbursement agreements (HRAs) are used for the purchase of dietary supplements.

These three programs are ways for consumers to set aside pre-tax dollars to pay for health care costs, including out-of-pocket expenses related to medications, medical devices and doctor visits.

Industry support

The legislation amends the Internal Revenue Code to designate certain over-the-counter dietary supplements and certain foods for special dietary uses as qualified medical expenses. It is approved by the Natural Products Association (NPA), Swanson Health Products and the Healthcare Nutrition Council.
Making this change to the IRS code has been a priority for Cramer. He has already presented this bill, notably in 2021.
Nutritional supplements are preventative care, helping to reduce health care costs by keeping Americans healthy, the senator said. By modernizing the rules for savings and spending accounts, my bill would save taxpayers’ money, expand consumer choice, and encourage people to invest in their health and well-being. well-being.
NPA President and CEO Daniel FAbricant, Ph.D., released a statement supporting the bill.
Expanding access to nutritional supplements is an innovative solution to keep more Americans healthy, Fabricant said. For years, Senator Cramer has been a champion of the natural products industry.

Consensus around an idea

The bill Cramer reintroduced is similar to other efforts to make this change. Earlier this year, a similar bill has been introduced in the United States House of Representatives by Reps. Darin LaHood (R-Ill.), Brendan Boyle (D-Pa.), John Curtis (R-Utah) and Josh Gottheimer (D-N.J.).
The bill’s sponsors said the change not only made sense from a health policy perspective, but also seemed to fit what most Americans already wanted.
Sponsors of the House bill pointed to a joint study by the Council for Responsible Nutrition (CRN) and the Consumer Healthcare Products Association (CHPA) that found that 78 percent of Americans with FSA or HSA accounts would like to have the flexibility to use these funds to purchase supplements.
The ACPS notes on its website that HSA plans are used by Americans of all income levelsthe average HSA contribution being 2% of household income, according to the conclusions of theEmployee Benefits Research Institute(EBRI). In fact, 48% of those using HSA/FSA accounts earn less than $71,243 per year and the highest percentage of HSA/FSA account users come from those earning between $50,000 and $59,999 per year. year.

Although previous bills failed, CHPA CEO Scott Melville noted in 2021 that the pandemic has made Americans aware of the importance of dietary supplements to support health. So, repeated reintroductions of the idea might ultimately prove to be a winning strategy.