Action Requested
Please Co-sponsor the Health Savings Act of 2017
Background
This legislation was introduced by U.S. Senator Orrin Hatch (R-UT) and Representative Erik Paulsen (R-MN) as S.403 and H.R.1175, respectively.
This legislation allows reimbursement for dietary supplements from Health Savings Accounts (HSA) and Flexible Spending Accounts (FSA), up to a cap of $1,000 per year. This legislation would reinstate their use in covering a broad range of preventive care options as HSAs and FSAs were limited under the Affordable Care Act.
Issue
HSAs and FSAs allow participants certain tax benefits for medical expenditures as defined in section 213(d) of the Internal Revenue Code. Tax regulations interpret such expenses as incurred primarily for the “prevention or alleviation of a physical or mental defect or illness.” Current law allows prescription drugs to be covered by HSA and FSA dollars; however, it does not allow the same treatment for dietary supplements, several dietary ingredients have been FDA-approved for making disease risk reduction health and qualified heath claims. For example, folic acid is recommended by obstetricians to prevent neural tube defects in a developing fetus.
Incentivizing a preventive role for health and wellness disease prevention by establishing tax deductibility for dietary supplements will promote public health and reduce our nation’s out-of- pocket medical expenses. The Health Savings Act would implement these necessary changes to allow families to lead healthier lives, provide more freedom in Americans’ personal healthcare choices, and lower overall healthcare costs.
NPA Position
NPA strongly supports this legislation and urges both chambers to the quickly pass both S.403 and H.R.1175.
