Senate Bill Would Allow Patients to Purchase Supplements with Flexible Spending Accounts

U.S. Senator Kevin Cramer, R-South Dakota, has reintroduced legislation aimed at allowing dietary supplements to be purchased with Health Savings Accounts (HSA), Flexible Savings Accounts (FSA), and Health Reimbursement Arrangements (HRA). 

“Nutritional supplements are preventative care, helping lower health care costs by keeping Americans healthy,” said Senator Cramer in a press release. “By modernizing the rules for savings and spending accounts, my bill would save taxpayer funds, increase consumer choice, and encourage people to invest in their health and wellness.”

The Senate bill amends the Internal Revenue Code to designate certain over-the-counter dietary supplement products and foods for special dietary uses as qualified medical expenses. Endorsed by the Natural Products Association (NPA), Swanson Health Products, and the Healthcare Nutrition Council, the initiative has garnered support for expanding access to nutritional supplements.

“Expanding access to nutritional supplements is an innovative solution aimed at keeping more Americans healthy… NPA is grateful for Senator Cramer’s leadership and is excited to continue working with him to expand access to nutritional supplements,” said Daniel Fabricant, Ph.D. President and CEO, Natural Products Association.

According to a statement by the Integrative Health Policy Consortium, the bill, which was introduced in October of 2023, will most likely not move forward this year. However, the looming sunset of many tax bills in 2025 could prompt a comprehensive tax overhaul, offering an opportunity to garner momentum for the legislation.