Sponsors (6)
The bill makes common OTC oral-care products eligible for tax-advantaged reimbursement—reducing out-of-pocket costs and clarifying coverage for many account-holders—while creating modest federal revenue loss, some employer/admin adjustments, and potential uncertainty about which products qualify that could trigger claim disputes.
People who use HSAs, FSAs, HRAs, or Archer MSAs (including many middle-class families and individuals with employer-sponsored accounts) can use tax-advantaged funds to buy common over-the-counter oral-care items such as toothbrushes, water flossers, and qualifying anticaries/antigingivitis topical products.
Low- and middle-income individuals who rely on these accounts face lower out-of-pocket barriers to basic oral care because qualifying OTC products become reimbursable with pre-tax dollars.
Employers and plan administrators get clearer IRS guidance on treatment of oral-care items across HSAs, FSAs, HRAs, and Archer MSAs, which should simplify plan administration and claims processing.
Consumers may face claim denials or disputes because it may be unclear which OTC oral-care products meet the FDA/505G 'generally recognized as safe and effective' standard for eligibility.
Employers and plan administrators could incur added administrative burden and costs updating eligible expense lists and processing new types of claims, which could indirectly affect employees or plan sponsors.
Expanding pre-tax coverage for consumer oral products reduces taxable income and could slightly lower federal revenue over time.
Based on analysis of 2 sections of legislative text.
Permits HSAs, FSAs, and HRAs to reimburse toothbrushes, water flossers, and certain qualifying OTC anticaries/antiplaque topical products by amending tax-code definitions.
Introduced February 11, 2025 by Jefferson Van Drew · Last progress February 11, 2025
Changes to tax rules let people use HSAs, FSAs, and HRAs to pay for certain over-the-counter oral care items. Manual or electric toothbrushes, water flossers, and specific OTC anticaries or antiplaque/antigingivitis topical drug products that meet FDA-related safety/effectiveness standards become eligible for tax-advantaged reimbursement. The change applies to expenses incurred after the law takes effect.