LEGAL ALERT: HSA/FSA/RSA supplement legislation introduced in U.S. House (Congress.gov)

Editor's Note

Representatives John Curtis (R-UT) and Josh Gottheimer (D-NJ) introduced bipartisan legislation last Friday that would allow consumers to use funds from health savings accounts, flexible spending arrangements, and health reimbursement arrangements (commonly known as HSAs, FSAs, and HRAs) on dietary supplements. Money spent on dietary supplements had previously only been a qualifying medical care expense under limited, specific circumstances.

“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 AHPA President Michael McGuffin. “Permitting dietary supplements to be eligible expenditures under HSAs, FSAs, and HRAs would incentivize healthy behaviors and consumer choice. Reps. Gottheimer and Curtis recognize the contributions of these products in leading to better health and wellness of Americans. AHPA is grateful for their leadership on this issue and wholeheartedly supports this important measure.”

September 10, 2021

Congress.gov

HSA/FSA/RSA supplement legislation introduced in

U.S. House

H. R. 5214

To amend the Internal Revenue Code of 1986 to permit expenditures from health savings accounts, flexible spending arrangements, and health reimbursement arrangements for dietary supplements.

Be it enacted by the Senate and House of Representatives of the

United States of America in Congress assembled,

Section 1. Expenditures from health savings accounts, flexible spending arrangements, and health reimbursement arrangements for dietary supplements.

(a) In General.--Section 223(d)(2) of the Internal Revenue Code of

1986 Code is amended by adding at the end the following:

``(E) Dietary nutritional supplement.--Amounts paid for a dietary supplement (as defined in section 201(ff) of the Federal Food, Drug, and Cosmetic Act (21 U.S.C. 321(ff)) shall be treated as amounts paid for medical care.''.

(b) Reimbursements From Flexible Spending Arrangements and Health Arrangements for Dietary Nutritional Supplements.--Section 106 of such Code is amended by adding at the end the following:

``(h) Reimbursements for Dietary Nutritional Supplements.--For

purposes of this section and section 105, expenses incurred for a

dietary supplement (as defined in section 201(ff) of the Federal Food, Drug, and Cosmetic Act (21 U.S.C. 321(ff)) shall be treated as incurred for medical care.''.

apply to taxable years ending after the date of the enactment of this

Act.