Oral Health Products Inclusion Act
- Sponsor
- Rep. Van Drew, Jefferson [R-NJ-2]
- Committees
- Ways and Means Committee (primary)
- Last action
- Feb 11, 2025
Bottom line
This bill broadens the range of everyday oral hygiene products eligible for purchase with tax-advantaged health savings funds, aiming to reduce out-of-pocket costs for consumers.
What it actually does
This bill amends the Internal Revenue Code of 1986 to expand the definition of qualified medical expenses for Health Savings Accounts (HSAs), Archer Medical Savings Accounts (MSAs), Health Flexible Spending Arrangements (FSAs), and Health Reimbursement Arrangements (HRAs). It specifically adds manual and electric toothbrushes, water flossers, and certain over-the-counter oral healthcare drug products (as defined by FDA regulations) to the list of items that can be purchased with pre-tax funds from these accounts.
Proponents argue
Supporters argue this bill promotes better oral hygiene by making essential preventative products more affordable, especially for low- and middle-income families, and aligns with a broader understanding of preventative healthcare. They contend it simplifies healthcare spending by including common items already purchased by most households, removing a financial barrier to maintaining good oral health.
Opponents contend
Critics might argue that expanding eligible expenses for HSAs/FSAs primarily benefits those who already have access to and utilize these accounts, potentially offering a greater tax advantage to higher earners. They could also raise concerns about the potential for increased administrative complexity for account providers or a slight reduction in federal tax revenue due to expanded tax-advantaged spending.
The bill is very short and easy to read, allowing ample time for a thorough understanding of its provisions.
Section 2(a), 2(b), 2(c)
Expansion of Qualified Medical Expenses for Oral Healthcare Products
This provision amends the Internal Revenue Code to allow individuals to use funds from Health Savings Accounts (HSAs), Archer Medical Savings Accounts (MSAs), Health Flexible Spending Arrangements (FSAs), and Health Reimbursement Arrangements (HRAs) to purchase over-the-counter oral healthcare products. Specifically, it includes manual and electric toothbrushes, water flossers, and certain FDA-recognized anticaries, antiplaque, or antigingivitis drug products. This change makes these common oral hygiene items eligible for purchase with pre-tax dollars, effectively reducing their cost for eligible consumers.
Supporters argue
Supporters argue this expansion removes a barrier to preventative oral care, recognizing these products as essential for health and well-being. They contend it simplifies the tax code by aligning eligible expenses with common health needs and provides a modest financial relief to families, encouraging better health outcomes.
Critics contend
Critics might argue that while seemingly beneficial, this change primarily offers a tax break to those already utilizing HSAs/FSAs, which tend to be higher-income individuals, thus potentially exacerbating existing inequities in the tax system. They may also point to the administrative burden for employers and account administrators to update eligible product lists.
Tradeoffs
The bill balances the goal of promoting public health through accessible oral care against concerns about potential federal revenue loss and whether the tax benefits are equitably distributed across income brackets, given the demographics of HSA/FSA participants.
Defines "oral healthcare product" as an over-the-counter anticaries, antiplaque, or antigingivitis drug product suitable for topical administration to the teeth or gums that is generally recognized as safe and effective under section 505G of the Federal Food, Drug, and Cosmetic Act (21 U.S.C. 355f).
Section 2(a)(2), adding new subparagraph (E) to Section 223(d)(2) of the IRC.
Why it matters:This is standard legislative practice to avoid reprinting lengthy statutory definitions and to ensure consistency with existing regulatory frameworks for drug products. It leverages established expertise from the FDA for product classification rather than creating new criteria.
Case for: Referencing existing FDA regulations ensures that only scientifically validated and safe products are eligible for HSA/FSA reimbursement, preventing the inclusion of unproven or potentially harmful items. It provides a clear, objective standard for eligibility.
Case against: A casual reader might not realize the full scope of "oral healthcare product" without looking up the referenced FDA statute, potentially leading to confusion about which specific products, beyond toothbrushes and water flossers, are truly eligible.
Estimated impact: Ensures that the expanded eligibility for "oral healthcare products" is limited to specific, regulated over-the-counter drug products, preventing a broader, undefined expansion that could have larger fiscal or health implications.