Industry hails proposed US legislation to let consumers buy dietary supplements with pre-tax dollars

US senators Kevin Cramer and John Curtis have introduced legislation to allow citizens to purchase dietary supplements using pre-tax health accounts. If enacted by 2027 as planned, the Dietary Supplements Access Act would classify over-the-counter (OTC) dietary supplements as medical expenses. 

Under the proposed bill, individuals would be able to use up to US$250 annually from their health accounts for supplements, while married couples could use up to US$500 per year. This would effectively lower out-of-pocket costs for consumers.

Applicable health accounts include Health Savings Accounts, Flexible Spending Accounts, and Health Reimbursement Arrangements.

Several industry organizations expressed their support for the bill, including the National Products Association (NPA), Council for Responsible Nutrition (CRN), and Consumer Health Products Association (CHPA).

“The Dietary Supplement Access Act is a commonsense, pro-consumer bill that empowers Americans to take charge of their own health and wellness,” says Daniel Fabricant, Ph.D., president and CEO of NPA.

“Millions of Americans use dietary supplements as part of their daily health routine, yet current tax law treats these products as a luxury rather than the legitimate health tool they are. We urge Congress to move swiftly on this important legislation.”

Integral components of health care

Dietary supplements, including vitamins, minerals, herbs, botanicals, and other nutritional products, are defined under the US Federal Food, Drug, and Cosmetic Act. These products currently do not qualify as reimbursable medical expenses under federal law, limiting consumers’ ability to use pre-tax dollars to offset their costs.

Applicable health accounts include Health Savings Accounts, Flexible Spending Accounts, and Health Reimbursement Arrangements.

Supplements are a key focus under the US Make America Healthy Again campaign, helping to fill nutritional gaps, prevent deficiencies, and support overall health.

“Yet despite their widespread use and growing role in preventative care, federal law generally prevents Americans from freely using their own Health Savings Accounts to purchase them,” says Cramer.

“Nutritional supplements are a crucial form of preventative care, keeping people healthier in the long run and, ultimately, driving down health care costs,” he stresses. “But right now, the rules don’t fully reflect this reality.”

“By modernizing how health savings accounts and flexible spending accounts can be used, this bill gives families more freedom, more choice, and more ability to invest in their own well-being.”

Steve Mister, president and CEO of CRN, applauds the new bill, noting its “modern understanding of health care” in recognizing the role dietary supplements can play in supporting health and wellness.

“Consumers increasingly use supplements as part of their proactive health regimens, yet current tax policy has failed to keep pace with how Americans approach preventive care,” he adds. “This legislation helps empower consumers to make health investments using the same tax-advantaged tools already available for many other wellness and medical expenses.”

Expanding OTC supplements affordability

During the COVID-19 pandemic, CRN supported successful efforts to expand the list of eligible OTC health products covered by Health Savings Accounts and Flexible Spending Accounts through the CARES Act. 

The association notes it has also consistently backed proposals that would recognize dietary supplements as eligible preventive health expenses and reduce barriers to consumer access.

Scott Melville, president and CEO of CHPA, echoes support for the bill, calling it a “smart health care policy” offering greater flexibility and affordability for consumers.

“Giving consumers the ability to use their own pre-tax dollars to purchase supplements makes health care more affordable and accessible and empowers Americans to take a more proactive approach to their health and wellness.”

In parallel industry developments, Niagen Bioscience partnered with payment platform Truemed earlier this year to allow eligible US consumers to purchase its NAD+ booster supplement, Tru Niagen, using pre-tax health care dollars. The partnership utilizes Truemed’s role as a clinical intermediary to qualify the wellness product for Health Savings Account and Flexible Spending Account funds.