07.21.23
U.S. Representatives Darin LaHood (IL-16), Brendan F. Boyle (PA-02), John Curtis (UT-03), and Josh Gottheimer (NJ-05) introduced the Dietary Supplements Access Act, a bill which would qualify dietary supplement purchases for coverage under Flexible Spending Accounts (FSAs) and Health Savings Accounts (HSAs).
The goal of the legislation, its sponsors report, is to improve the availability of vitamins, minerals, and nutritional products, and to “recognize the valuable role nutritional supplements play in helping to achieve better health outcomes and promote cost savings.”
The bipartisan legislation would make an amendment to the Internal Revenue Code to include over-the-counter dietary supplement products as a qualified medical expense, and is supported by the Consumer Healthcare Products Association (CHPA), the American Herbal Products Association (AHPA), Council for Responsible Nutrition (CRN), Natural Products Association (NPA), and United Natural Products Alliance (UNPA).
“Ensuring that Americans are able to utilize their Health Savings Accounts and Flexible Savings Accounts as a tool to make personal healthcare choices for their families remains one of my priorities,” said LaHood. “As enrollment in HSA’s continues to grow, our bill would remove unnecessary barriers to better meet the needs of consumers. This bipartisan approach would allow over-the-counter nutrition and dietary supplements to be considered as qualified medical expenses under HSAs and FSAs so that a patient can choose to utilize their health savings dollars to access these dietary supplements.”
Boyle noted that 22 million Americans are enrolled in a health savings account. “Since HSAs, FSAs, and HRAs, require a prescription for the reimbursement of vitamins it makes sense to remove barriers to supplementing nutrient-deficient diets. This legislation will serve to remove many impediments to self-care, with the goal of creating a sensible path toward better health for all."
The bill proves that “Congress is serious about giving more Americans choice in how they take care of their health care needs, as well as the importance of proactive care,” said Curtis. “What works for one person may not work for another, and too often one-size-fits-all policymaking leads to higher costs for consumers and their families.”
“For many, dietary nutritional supplements like vitamins and minerals are key to supporting their health. I’m proud to help lead the bipartisan Dietary Supplements Access Act to make over-the-counter dietary supplements more affordable. We need to do everything we can to boost access to nutritional supplements,” said Gottheimer.
Unanimous Support from Industry
In a joint statement, the five major dietary supplement trade associations formally in support of the bill pointed to a 2023 study which confirmed that 78% of Americans with an HSA or FSA want to be able to use their pre-tax dollars to purchase dietary supplements. The study suggested that only 34% of FSA/HSA holders would increase their spending, and only 25% of non-account holders said they would open an account and contribute to it as a result of the change introduced. With an average of two percent of one’s household income being the average HSA/FSA contribution, impact on tax revenue would be meager, the study suggested, as has been the case with increased coverage of other types of over-the-counter products.
“By allowing dietary supplements to be added to the list of qualified medical expenses, this bill builds on previous legislative efforts, including a bipartisan victory in 2020, that expanded FSA and HSA eligibility to include over-the-counter medicines and feminine hygiene products,” noted Scott Melville, president and CEO of CHPA.
“Putting consumers in charge of their health choices and allowing them to make informed decisions about their healthcare, as this legislation would do, makes good policy sense,” said Michael McGuffin, AHPA president. “Treating purchases of dietary supplements as eligible expenditures under HSAs and FSAs would incentivize healthy behaviors and consumer choice.”
“[Dietary supplements] not only can reduce risks associated with chronic conditions but can also lead to billions in savings for America’s health care system, as evidenced by the CRN Foundation’s recent health care cost savings study, Supplements to Savings,” said Steve Mister, president and CEO of CRN.
Daniel Fabricant, PhD, president and CEO of NPA, said that this will be the “most cost-effective public health policy of all.” “With industry champions like Reps. LaHood, Boyle, Curtis, and Gottheimer sponsoring this legislation, we have a good foundation for advancing this bill through Congress. As we build momentum and additional support for this proposal, we will work closely with congressional leadership to strengthen the legislation,” Fabricant said.
“Taxpayers deserve the choice to control their own spending, and this long overdue bill will provide greater incentives for adopting and maintaining healthy lifestyles. UNPA will be working hard for its passage,” said Loren Israelsen, president of UNPA.
The goal of the legislation, its sponsors report, is to improve the availability of vitamins, minerals, and nutritional products, and to “recognize the valuable role nutritional supplements play in helping to achieve better health outcomes and promote cost savings.”
The bipartisan legislation would make an amendment to the Internal Revenue Code to include over-the-counter dietary supplement products as a qualified medical expense, and is supported by the Consumer Healthcare Products Association (CHPA), the American Herbal Products Association (AHPA), Council for Responsible Nutrition (CRN), Natural Products Association (NPA), and United Natural Products Alliance (UNPA).
“Ensuring that Americans are able to utilize their Health Savings Accounts and Flexible Savings Accounts as a tool to make personal healthcare choices for their families remains one of my priorities,” said LaHood. “As enrollment in HSA’s continues to grow, our bill would remove unnecessary barriers to better meet the needs of consumers. This bipartisan approach would allow over-the-counter nutrition and dietary supplements to be considered as qualified medical expenses under HSAs and FSAs so that a patient can choose to utilize their health savings dollars to access these dietary supplements.”
Boyle noted that 22 million Americans are enrolled in a health savings account. “Since HSAs, FSAs, and HRAs, require a prescription for the reimbursement of vitamins it makes sense to remove barriers to supplementing nutrient-deficient diets. This legislation will serve to remove many impediments to self-care, with the goal of creating a sensible path toward better health for all."
The bill proves that “Congress is serious about giving more Americans choice in how they take care of their health care needs, as well as the importance of proactive care,” said Curtis. “What works for one person may not work for another, and too often one-size-fits-all policymaking leads to higher costs for consumers and their families.”
“For many, dietary nutritional supplements like vitamins and minerals are key to supporting their health. I’m proud to help lead the bipartisan Dietary Supplements Access Act to make over-the-counter dietary supplements more affordable. We need to do everything we can to boost access to nutritional supplements,” said Gottheimer.
Unanimous Support from Industry
In a joint statement, the five major dietary supplement trade associations formally in support of the bill pointed to a 2023 study which confirmed that 78% of Americans with an HSA or FSA want to be able to use their pre-tax dollars to purchase dietary supplements. The study suggested that only 34% of FSA/HSA holders would increase their spending, and only 25% of non-account holders said they would open an account and contribute to it as a result of the change introduced. With an average of two percent of one’s household income being the average HSA/FSA contribution, impact on tax revenue would be meager, the study suggested, as has been the case with increased coverage of other types of over-the-counter products.
“By allowing dietary supplements to be added to the list of qualified medical expenses, this bill builds on previous legislative efforts, including a bipartisan victory in 2020, that expanded FSA and HSA eligibility to include over-the-counter medicines and feminine hygiene products,” noted Scott Melville, president and CEO of CHPA.
“Putting consumers in charge of their health choices and allowing them to make informed decisions about their healthcare, as this legislation would do, makes good policy sense,” said Michael McGuffin, AHPA president. “Treating purchases of dietary supplements as eligible expenditures under HSAs and FSAs would incentivize healthy behaviors and consumer choice.”
“[Dietary supplements] not only can reduce risks associated with chronic conditions but can also lead to billions in savings for America’s health care system, as evidenced by the CRN Foundation’s recent health care cost savings study, Supplements to Savings,” said Steve Mister, president and CEO of CRN.
Daniel Fabricant, PhD, president and CEO of NPA, said that this will be the “most cost-effective public health policy of all.” “With industry champions like Reps. LaHood, Boyle, Curtis, and Gottheimer sponsoring this legislation, we have a good foundation for advancing this bill through Congress. As we build momentum and additional support for this proposal, we will work closely with congressional leadership to strengthen the legislation,” Fabricant said.
“Taxpayers deserve the choice to control their own spending, and this long overdue bill will provide greater incentives for adopting and maintaining healthy lifestyles. UNPA will be working hard for its passage,” said Loren Israelsen, president of UNPA.
