Sponsors (7)
The bill lets people use HSA/FSA/HRA dollars for routine OTC oral-care items—reducing out-of-pocket costs and clarifying coverage—but may raise plan/admin costs, modestly lower federal revenue, and produce disputes over which products qualify.
Low- and middle-income people who use HSAs/FSAs/HRAs will face lower out-of-pocket costs for basic oral care because qualifying OTC toothbrushes, water flossers, and certain anticaries/antigingivitis products can be paid for pre-tax.
People with HSAs/FSAs/HRAs (and their families) can buy a wider set of everyday oral-care items with tax-advantaged dollars, increasing the effective value of those accounts.
Employers and plan administrators will have clearer IRS guidance about which oral-care items qualify under HSAs, Archer MSAs, FSAs, and HRAs, simplifying plan administration and claims processing for those products.
Consumers seeking reimbursement may face denials or disputes because it's unclear which OTC oral products meet the FDA standard referenced, creating access and fairness issues for patients with chronic conditions or other users.
Employers, plan administrators, and ultimately taxpayers may incur higher administrative costs or operational burdens as plans update eligible-expense lists and process new types of claims.
Expanding pre-tax coverage to commonly purchased consumer oral products will slightly reduce federal tax revenue over time by allowing more purchases to be taken pre-tax.
Based on analysis of 2 sections of legislative text.
Allows reimbursement from HSAs/FSAs/HRAs for specified OTC anticaries/antiplaque topical drug products and for toothbrushes and water flossers.
Allows common over-the-counter oral care items to be paid or reimbursed from tax-advantaged medical accounts. The bill adds a legal definition of “oral healthcare product” and explicitly permits reimbursement from HSAs, FSAs, HRAs for specified OTC anticaries/antiplaque topical drug products and for toothbrushes (manual or electric) and water flossers for expenses incurred after enactment. The change is implemented by amending Internal Revenue Code provisions that govern Archer MSAs, HSAs, and employer-provided account reimbursements so these oral care items qualify as eligible medical expenses.
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