Sponsors (5)
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—while risking increased federal costs, potential subsidization of unproven products, and modest administrative burden on employers.
Taxpayers (including middle-class families) can use HSA, Archer MSA, FSA, and HRA funds to pay up to $500/year for dietary supplements, lowering their out-of-pocket health spending.
People who use dietary supplements to manage chronic conditions can get tax-advantaged coverage for some products, reducing their effective treatment costs.
Employers and other plan administrators gain clearer guidance to reimburse certain supplement purchases, simplifying some aspects of FSA/HRA/FSA administration.
All taxpayers may face higher federal budget costs from expanded tax-advantaged reimbursements for supplements, which could increase deficits or crowd out funding for other programs.
Taxpayers (including middle-class families) might use tax-advantaged dollars to buy supplements with marginal or unproven benefits, effectively subsidizing low-value or unnecessary purchases.
Employers and plan administrators will need to update plan documents and eligibility rules, creating administrative costs and implementation complexity.
Based on analysis of 2 sections of legislative text.
Allows up to $500 per taxpayer ($250 if married filing separately) of dietary supplements to be treated as qualified medical expenses for HSAs, Archer MSAs, FSAs, and HRAs, excluding energy 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 people to use health savings accounts (HSAs), Archer MSAs, flexible spending accounts (FSAs), and health reimbursement arrangements (HRAs) to pay for certain dietary supplements as qualified medical expenses up to $500 per taxpayer per year ($250 if married filing separately). It defines “dietary supplement” by referencing the federal food law but excludes energy drinks, soft drinks, and sodas. The HSA/Archer MSA rule applies to amounts paid after Dec 31, 2025; the FSA/HRA rule applies to expenses incurred after Dec 31, 2025.