A new legislative push in the U.S. Senate aims to make dietary supplements eligible for purchase using funds from tax-advantaged health plans like Health Savings Accounts (HSAs), Flexible Spending Accounts (FSAs), and Health Reimbursement Arrangements (HRAs). The bill, reintroduced by Senator Kevin Cramer (R-South Dakota), could bring significant changes to how consumers can use their pre-tax dollars for health-related expenses.
This bill proposes an amendment to the Internal Revenue Code, enabling consumers to use their HSA, FSA, and HRA funds for dietary supplements and foods designed for specific dietary needs. These accounts currently allow individuals to set aside pre-tax income for healthcare expenses, including doctor visits, medications, and medical devices.
Industry Support and Legislative Advocacy
The bill has received backing from prominent industry groups such as the Natural Products Association (NPA), Swanson Health Products, and the Healthcare Nutrition Council. Senator Cramer has pushed for this legislative change in previous years, including introducing a similar bill in 2021. His advocacy emphasizes the preventative role of supplements in maintaining health and reducing overall healthcare costs. “Nutritional supplements are preventative care, helping lower healthcare costs by keeping Americans healthy,” Cramer said. He believes the bill would not only save taxpayer money but also offer greater consumer choice, encouraging people to prioritize their health and wellness.
Dr. Daniel Fabricant, President and CEO of the NPA, expressed his support for the bill, highlighting the importance of expanding access to supplements as a way to promote better health for more Americans. “For years, Senator Cramer has been a natural product industry champion,” said Fabricant.
Growing Consensus Across Government and Consumers
The reintroduced Senate bill aligns with similar efforts in the House of Representatives. Earlier this year, Representatives Darin LaHood (R-Ill.), Brendan Boyle (D-Pa.), John Curtis (R-Utah), and Josh Gottheimer (D-N.J.) introduced a comparable bill. The sponsors of both bills argue that allowing supplement purchases with tax-advantaged funds makes sense from a healthcare policy standpoint and reflects what many Americans want.
A joint study by the Council for Responsible Nutrition (CRN) and the Consumer Healthcare Products Association (CHPA) found that 78% of people with an FSA or HSA account would like the flexibility to use these funds for supplements. This statistic underscores the growing demand for such a change.
According to CHPA, HSA plans are utilized by Americans across various income levels. Data from the Employee Benefits Research Institute (EBRI) shows that nearly 50% of HSA/FSA users earn under $71,243 annually, with the largest group falling between $50,000 and $59,999 in income.
A Strategy for Success
Although similar bills have failed in the past, the ongoing push to pass this legislation may finally succeed. The COVID-19 pandemic has highlighted the role of supplements in supporting overall health, increasing public awareness of their benefits. As consumer interest grows, repeated reintroductions of the bill could eventually lead to a successful outcome, helping millions of Americans access the supplements they need with the funds already available to them.
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