H.R. 8933: Dietary Supplements Access Act

This bill, known as the Dietary Supplements Access Act, proposes changes to the Internal Revenue Code to classify dietary supplements as qualified medical expenses. Here is a summary of the key provisions of the bill:

Inclusion in Health Savings Accounts (HSAs)

The bill amends Section 223(d) of the Internal Revenue Code to allow individuals to treat amounts spent on dietary supplements as medical care. Specifically:

• Individuals can claim up to $500 per year for dietary supplements, or $250 for married individuals filing separately.

Definition of Dietary Supplements

The bill provides a definition for dietary supplements, referencing Section 201(ff) of the Federal Food, Drug, and Cosmetic Act. Importantly, it excludes products commonly recognized as energy drinks, soft drinks, or sodas.

Inclusion in Archer Medical Savings Accounts (MSAs)

Similarly, the bill allows amounts paid for dietary supplements to be treated as medical care under Archer MSAs. The same limits apply: up to $500 for individuals and $250 for married individuals filing separately.

Health Flexible Spending Arrangements and Health Reimbursement Arrangements

The bill also modifies Section 106 of the Internal Revenue Code to include dietary supplement expenses as eligible for reimbursement in health flexible spending arrangements and health reimbursement arrangements, again subject to the same annual limits of $500 and $250, respectively.

Effective Dates

• The provisions regarding HSAs and Archer MSAs apply to amounts paid after December 31, 2025.
• The provisions regarding reimbursements for health flexible spending and health reimbursement arrangements apply to expenses incurred after December 31, 2025.

Public Impact

By qualifying dietary supplements as medical expenses, the bill aims to provide individuals with more flexibility in using their health savings accounts and similar arrangements for purchasing these products. This could lead to potential increases in consumer spending on dietary supplements.

Relevant Companies

• UNFI - United Natural Foods, Inc. may see an increase in sales as more consumers might purchase dietary supplements with tax-advantaged dollars.
• THRY - Thryv Holdings, which is involved in health supplements, could benefit from the increased classification of their products as qualified medical expenses.
• AMCN - American Communications Network, given its involvement in health-related products, could also have a stake in increased sales from the consumer market influenced by this bill.