Sponsors (10)
The bill lets people use tax-advantaged health accounts for up to $500/year in dietary supplements—reducing out-of-pocket costs and helping some patients, but raising federal costs, potentially encouraging spending on unproven products, and imposing administrative updates on employers.
Taxpayers can use HSA, Archer MSA, FSA, and HRA funds to pay up to $500/year for dietary supplements, lowering out-of-pocket health spending for many families.
People who rely on supplements to manage chronic conditions can get tax-advantaged coverage for some products, reducing their effective treatment costs.
Employers and HSA/FSA/HRA administrators receive clearer guidance to reimburse certain supplement purchases, simplifying plan administration and claims processing.
Expanding tax-advantaged reimbursements to supplements could increase federal budget costs and deficits, which may mean higher taxes or fewer funds for other programs over time.
Allowing tax-free dollars for supplements may encourage purchases of marginal or unproven products, exposing consumers to ineffective treatments and possible health risks.
Employers and plan administrators will need to update plan documents and eligibility rules to reflect the change, creating administrative costs and added complexity.
Based on analysis of 2 sections of legislative text.
Allows up to $500/year ($250 if married filing separately) of dietary supplements to be paid from HSAs, Archer MSAs, FSAs, and HRAs, excluding energy drinks, soft drinks, and sodas.
Official title: To amend the Internal Revenue Code of 1986 to include dietary supplements as qualified medical expenses.
Introduced May 20, 2026 by Darin Lahood · Last progress May 20, 2026
Allows individuals to use health savings accounts (HSAs), Archer MSAs, health flexible spending accounts (FSAs), and health reimbursement arrangements (HRAs) to pay for certain dietary supplements up to $500 per taxpayer (or $250 for married filing separately) each tax year. The bill defines “dietary supplement” by referring to the Food, Drug, and Cosmetic Act definition while excluding energy drinks, soft drinks, and sodas. The change amends the tax code to add a $500 annual cap for HSA and Archer MSA qualified medical expenses for dietary supplements and creates a new rule treating up to $500 of dietary supplement expenses as medical care for FSAs and HRAs. HSA/Archer MSA rules apply to amounts paid after Dec 31, 2025; FSA/HRA rules apply to expenses incurred after Dec 31, 2025.