04.20.23
Vitamins and supplements don’t automatically count as expenses covered by Americans’ health savings accounts (HSAs) or flexible spending accounts (FSAs), aside from exceptions such as if they’re prescribed with a letter of medical necessity and used to treat a medical condition.
However, a survey conducted by Ipsos which was jointly commissioned by the Council for Responsible Nutrition (CRN) and Consumer Healthcare Products Association (CHPA) concludes that 78% of Americans believe that all supplements should receive automatic coverage.
Under current law, FSAs and HSAs allow employees to put aside money before it has been taxed to pay for healthcare costs related to medical care, prescription drugs, dental and vision care, over-the-counter medications, menstrual products, and other items. That law doesn’t cover all spending on dietary supplements.
“Although 75 percent of Americans use some type of dietary supplement, tens of millions of these same people, who invest into FSAs and HSAs, can’t then use that money to purchase, for example, children’s vitamins for their kids,” said Steve Mister, president & CEO of CRN. “Our interpretation of this survey tells us people don’t want to be penalized any longer for being proactive about their health by purchasing products that will help to keep their families healthy.”
Surprisingly, one third (33%) of FSA/HAS account owners mistakenly believe that they can already use their pre-tax account savings to purchase vitamins and other dietary supplements for general health. Another 29% said they didn’t know whether these products were covered.
“Consumers deserve and want the ability to choose how to best use their money to stay healthy and practice self-care,” said Scott Melville, president & CEO of CHPA. “With more Americans incorporating dietary supplements into their overall self-care plans, we must recognize the ever-increasing role they play in helping people improve their health and wellness. Today’s proactive consumers want flexibility to make pre-tax purchases of a range of health products, from OTC medicines and devices to dietary supplements, and these accounts should be a resource that encourages people to take charge of their health.”
Of note, a separate study commissioned by CRN revealed that tens of billions of dollars might be saved annually if target populations used specific supplements for the prevention of common conditions.
While critics of the expanded FSA/HSA coverage are worried about reduced tax revenue for the federal government, only a minority of people would change their investment behavior as a result of the expanded coverage. 34% of FSA/HSA holders said they’d be likely to increase their current investment levels, and just 25% of non-account holders said that the change would make them open an account and contribute to it.
“Americans are using dietary supplements and saving the country billions in healthcare costs,” said Mister. “Any tax-revenue hit the federal government would experience would be offset by the overall savings to the healthcare system. It makes sense for consumers—and the country.”
However, a survey conducted by Ipsos which was jointly commissioned by the Council for Responsible Nutrition (CRN) and Consumer Healthcare Products Association (CHPA) concludes that 78% of Americans believe that all supplements should receive automatic coverage.
Under current law, FSAs and HSAs allow employees to put aside money before it has been taxed to pay for healthcare costs related to medical care, prescription drugs, dental and vision care, over-the-counter medications, menstrual products, and other items. That law doesn’t cover all spending on dietary supplements.
“Although 75 percent of Americans use some type of dietary supplement, tens of millions of these same people, who invest into FSAs and HSAs, can’t then use that money to purchase, for example, children’s vitamins for their kids,” said Steve Mister, president & CEO of CRN. “Our interpretation of this survey tells us people don’t want to be penalized any longer for being proactive about their health by purchasing products that will help to keep their families healthy.”
Surprisingly, one third (33%) of FSA/HAS account owners mistakenly believe that they can already use their pre-tax account savings to purchase vitamins and other dietary supplements for general health. Another 29% said they didn’t know whether these products were covered.
“Consumers deserve and want the ability to choose how to best use their money to stay healthy and practice self-care,” said Scott Melville, president & CEO of CHPA. “With more Americans incorporating dietary supplements into their overall self-care plans, we must recognize the ever-increasing role they play in helping people improve their health and wellness. Today’s proactive consumers want flexibility to make pre-tax purchases of a range of health products, from OTC medicines and devices to dietary supplements, and these accounts should be a resource that encourages people to take charge of their health.”
Of note, a separate study commissioned by CRN revealed that tens of billions of dollars might be saved annually if target populations used specific supplements for the prevention of common conditions.
While critics of the expanded FSA/HSA coverage are worried about reduced tax revenue for the federal government, only a minority of people would change their investment behavior as a result of the expanded coverage. 34% of FSA/HSA holders said they’d be likely to increase their current investment levels, and just 25% of non-account holders said that the change would make them open an account and contribute to it.
“Americans are using dietary supplements and saving the country billions in healthcare costs,” said Mister. “Any tax-revenue hit the federal government would experience would be offset by the overall savings to the healthcare system. It makes sense for consumers—and the country.”
