LaHood, Boyle Introduce Legislation to Allow Nutritional Supplements to be Covered Under Flex/Health Spending Account

[October 28, 2021] 

Washington, D.C. – Congressmen Darin LaHood (R-IL) and Brendan F. Boyle (D-PA) today introduced the Dietary Supplement Tax Fairness Act, which will promote Americans ability to make personal healthcare decisions, help Americans support healthy lifestyles by modernizing the treatment of vitamins and minerals, and recognize the valuable role nutritional supplements play in helping to achieve better health outcomes and promote cost savings.

“Ensuring that Americans are able to utilize their Health Savings Accounts (HSA) as a tool to make personal healthcare choices for their families remains one of my priorities”, said Congressman LaHood. “As we work to climb out of the pandemic, ensuring my constituents have the resources they need to support opportunities for a healthy lifestyle, including the purchasing of vitamins and minerals, is important. 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 vitamins and minerals to be considered as qualified medical expenses under HSAs, FSAs, and HRAs, so that a patient can utilize their health savings dollars to access these dietary supplements.”

“The recent global health pandemic has taught us the importance of maintaining a nutrient-rich diet to maintain our health”, said Congressman Boyle. “More than 22 million Americans have chosen to enroll in a health savings account coupled with a consumer-direct health plan.

Given this significant growth, action should be taken to better meet consumer needs. Since HSAs, FSAs, and HRAs, require a prescription for the reimbursement of vitamins it makes sense to remove barriers to supplementing nutrient-deficient diets. Our bill takes a step in that direction.”

Roughly 80% of Americans use vitamins and dietary supplements for a range of benefits, from addressing nutrient deficiencies to strengthening bones and helping to prevent osteoporosis. Vitamins and dietary supplements can be a part of preventative care that can create cost savings to employers, consumers, and the entire healthcare system. Current tax code does not allow Americans with health-related savings accounts to be reimbursed for the out-of-pocket expenses they pay for nutritional and dietary supplements.

This bipartisan legislation would amend the Internal Revenue Code (IRC) to include certain over-the-counter dietary supplement products as a qualified medical expense. This change would allow Americans to be reimbursed from their Health Savings Accounts (HSAs), their Flexible Spending Accounts (FSAs), or their Health Reimbursement Arrangements (HRAs) for the out-of-pocket expenses they pay for nutritional and dietary supplements.

[Congressman Darin LaHood]