Sponsors (8)
The bill makes routine oral-care products eligible for tax-advantaged reimbursement—reducing consumer out-of-pocket costs and clarifying IRS treatment—at the cost of some administrative work for plans, potential coverage disputes over product eligibility, and a small reduction in federal revenue.
People who use HSAs, FSAs, HRAs, or Archer MSAs can pay for common oral-care items (toothbrushes, water flossers, and qualifying OTC anticaries/antigingivitis topicals) with pre-tax funds, effectively lowering the after-tax cost of routine oral hygiene.
Low- and middle-income people face lower out-of-pocket barriers to basic oral care because qualifying OTC oral-health products become eligible for tax-advantaged reimbursement, which can improve preventive oral health access.
Employers and plan administrators get clearer IRS guidance on how to treat oral-care items under HSAs, Archer MSAs, FSAs, and HRAs, simplifying plan administration and claims processing.
Employers, plan administrators, and taxpayers may incur higher plan costs or increased administrative burden as plans update eligible-expense lists and handle new claims for OTC oral-care products.
Consumers (especially those with chronic conditions) could face claim denials or disputes because it may be unclear which OTC products meet the FDA 'generally recognized as safe and effective under 505G' standard.
Expanding pre-tax coverage for common consumer oral products slightly lowers taxable income and could modestly reduce federal revenue over time.
Based on analysis of 2 sections of legislative text.
Allows reimbursement from HSAs, FSAs, HRAs, and Archer MSAs for toothbrushes, water flossers, and qualifying OTC anticaries/antigingivitis topical products.
Official title: To amend the Internal Revenue Code of 1986 to include over-the-counter oral healthcare products as qualified medical expenses which can be purchased with HSA and FSA funds.
Introduced February 11, 2025 by Jefferson Van Drew · Last progress February 11, 2025
Treats certain over-the-counter oral care items as eligible medical expenses for tax-advantaged accounts. The bill adds a new definition of “oral healthcare product” tied to an FDA safety standard and specifically allows reimbursement for toothbrushes (manual or electric), water flossers, and defined OTC anticaries/antigingivitis topical products from HSAs, FSAs, HRAs, and Archer MSAs for expenses incurred after enactment. This changes Internal Revenue Code provisions that govern which out-of-pocket oral-care items can be paid or reimbursed using pre-tax medical accounts, expanding consumer access to common oral hygiene products through employer-provided and individual tax-advantaged accounts.