The Council for Responsible Nutrition (CRN) released new data confirming that expanding Health Savings Accounts (HSAs), Flexible Spending Accounts (FSAs) and other similar accounts, would have a “modest” budget impact while delivering “enormous” health benefits for consumers.
Conducted in partnership with John Dunham & Associates, the analysis shows Americans could gain broad access to supplements through their tax-preferred health accounts at one-quarter of the cost previously suggested, the association said.
Some of the key findings of the analysis include:
- $12.2 billion: the true 10-year fiscal impact—75 percent lower than previous estimates
- $9.8 billion: the portion representing direct income tax reductions—a limited effect on federal revenues
- Most account holders to not rush to spend down balances—only 27 percent of HSA and only 36 percent of FSA holders use these accounts for over the counter (OTC) products
- Allowing supplements through HSA/FSA empowers consumers to fill nutrient gaps and support wellness without significant cost to the Treasury.
“This analysis confirms what we’ve long believed. Expanding access to supplements through HSAs and FSAs is commonsense policy—affordable, practical, and good for public health,” said Steve Mister, president and CEO of CRN.
According to CRN, millions of Americans rely on dietary supplements to maintain health, prevent costly conditions and address nutrition shortfalls. By allowing tax-preferred accounts to be used to supplement purchases, policymakers can empower families to take preventative health on their own terms, close nutrients gaps that contribute to chronic conditions and rising health care costs, and align policy with consumer choice.
Previous congressional committee projections suggested this policy would carry an outsized price tag, but these assumptions exaggerated consumer uptake and misrepresented off-budget impacts, the association said.
“Our data show clearly: original projections were off—the real numbers prove this policy is both affordable and beneficial,” Mister said.
For more information, visit www.crnusa.org.
