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Dietary Supplements Seek IRS Revision to Align with Make America Healthy Again Movement

Strategic Insights

— 1 min read

The Natural Products Association and other industry trade groups have appealed to the IRS to revise Publication 502, urging the agency to classify dietary supplements as "medical expenses" under the Internal Revenue Code. This move aims to align with the Make America Healthy Again movement, allowing Americans to use Health Savings Accounts (HSAs) and Flexible Spending Accounts (FSAs) for dietary supplement expenses, promoting healthier lifestyles.

Key Takeaways:

  • The Natural Products Association (NPA), American Herbal Products Association (AHPA), Consumer Healthcare Products Association (CHPA), Council for Responsible Nutrition (CRN), and United Natural Products Alliance (UNPA) have jointly called on the IRS to revise Publication 502 to include dietary supplements as "medical expenses" under the IRC.
  • The proposed revision would align with the Make America Healthy Again movement and President Trump's executive order, which aimed to promote health across the lifespan and ensure the availability of expanded treatment options.
  • The NPA has sent a letter to the IRS Commissioner on August 6, urging the revision, and a joint letter from other industry groups echoed these calls on August 20.
  • Dietary supplements are currently not eligible for reimbursement from HSAs and FSAs, unless a doctor's prescription is provided, despite millions of Americans having tax-preferred accounts.
  • Almost 40 million Americans have nearly $147 billion in tax-preferred HSAs, while 37 million Americans have FSAs through their employment.
  • The IRS dictates how HSA/FSA dollars can be spent, only allowing purchases that prevent or treat a medical condition, excluding dietary supplements unless prescribed by a physician.
  • Members of Congress have introduced bills, such as the Dietary Supplements Access Act, to achieve this goal, but none have been signed into law.

Statistics:

  • Almost 40 million Americans have nearly $147 billion in tax-preferred HSAs.
  • 37 million Americans have FSAs through their employment.
  • The U.S. government aims to "aggressively combat critical health challenges" under the Make America Healthy Again movement.
  • The proposed revision to Publication 502 would "modernize a 20th-century rule to reflect 21st-century science and consumer health behavior," according to Dr. Daniel Fabricant, NPA's president and CEO.

Sources:

  • Natural Products Association (NPA)
  • American Herbal Products Association (AHPA)
  • Consumer Healthcare Products Association (CHPA)
  • Council for Responsible Nutrition (CRN)
  • United Natural Products Alliance (UNPA)
  • IRS Publication 502
  • Executive Order of President Trump (Feb. 13, 2025)

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