Senators to IRS: Expand HSAs to Include Dietary Supplements

Senators to IRS: Expand HSAs to Include Dietary Supplements

WASHINGTON, D.C. – Senators Tim Scott (R-SC), Kyrsten Sinema (D-AZ) this week asked Internal Revenue Services (IRS) Commissioner Charles P. Rettig to allow nutritional and dietary supplements that carry health or structure/function claims to be considered “medical expenses” under Health Savings Accounts (HSA) and Flexible Spending Accounts (FSA). Senators Scott and Sinema were joined by Senators Mike Braun (R-IN), Rand Paul (R-KY), John Boozman (R-AR) and Senator Mike Lee (R-UT). A similar letter was sent by House lawmakers on Nov. 14.

“We are blessed to live in a nation where we have enough of what we need, but we need to empower folks to be able to make the best choices as it relates to their wellbeing and that of their families,” said Senator Tim Scott. “I applaud my colleagues for joining me in taking action to enable Americans to make proactive choices that will improve their overall health and expand their access to more nutritious options in the future.”

“Giving people more ways to save money in their preventative health care costs is a commonsense solution that can reduce costs for patients and taxpayers,” said Daniel Fabricant, Ph.D., President and CEO of NPA. “Too much of our focus in this country is on disease treatment rather than prevention. This simple change in our regulations promotes the proactive, preventive approach that we need to support if we wish to improve Americans’ health and healthcare costs.”

NPA is asking the IRS to revise Publication 502 for tax years 2020 and beyond to read as follows:

“you can include in medical expenses the cost of nutritional supplements, vitamins, herbal supplements, ‘natural medicines,’ etc., provided that such products are labeled with a health claim authorized by the Food and Drug Administration, bear statements describing how they are intended to affect the structure or function of the human body, or bear statements characterizing the mechanism by which the product acts to maintain such structure or function.”

Read the Senators’ Nov. 19 letter here.

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Natural Products Association

The Natural Products Association (NPA) is the trade association representing the entire natural products industry. We advocate for our members who supply, manufacture and sell natural ingredients or products for consumers. The Natural Products Association promotes good manufacturing practices as part of the growth and success of the industry. Founded in 1936, NPA represents over 1,000 members accounting for more than 10,000 locations of retailers, manufacturers, wholesalers and distributors of natural products, including foods, dietary supplements, and health/beauty aids. Visit