Washington, D.C.— The Council for Responsible Nutrition (CRN), the leading trade association for the dietary supplement and functional food industry, today released new data confirming that expanding Health Savings Accounts (HSAs), Flexible Spending Accounts (FSAs), and similar vehicles to cover dietary supplements would have a modest budget impact—just $12.2 billion over 10 years—while delivering enormous health benefits for consumers.
Conducted by John Dunham & Associates, the analysis demonstrates that Americans could gain broad access to supplements through their tax-preferred health accounts at only one-quarter the cost previously suggested.
Key Findings:
- $12.2 billion: True 10-year net fiscal impact—75% lower than earlier estimates.
- $9.8 billion: Portion representing direct income tax reductions, showing limited effect on federal revenues.
- Realistic uptake: Data show most account holders do not rush to spend down balances—only 27% of HSA and 36% of FSA holders currently use these accounts for OTC products, indicating limited but meaningful adoption for supplements.
- Public health upside: Allowing supplements through HSAs/FSAs empowers consumers to fill nutrient gaps, supporting wellness and prevention without significant cost to the Treasury.
“This analysis confirms what we’ve long believed,” said Steve Mister, President & CEO of CRN. “Expanding access to supplements through HSAs and FSAs is commonsense policy—affordable, practical, and good for public health.”
Why It Matters for Consumers
Millions of Americans already rely on dietary supplements to maintain health, prevent costly conditions, and address nutrition shortfalls. By unlocking tax-preferred accounts for supplement purchases, policymakers can:
- Empower families to take preventive health steps on their own terms.
- Close nutrient gaps that contribute to chronic conditions and rising healthcare costs.
- Align policy with consumer choice, just as these accounts already cover OTC medicines and first-aid supplies.
Setting the Record Straight
Previous congressional committee projections suggested that this policy would carry an outsized price tag. In fact, the assumptions behind those forecasts exaggerated consumer uptake and misrepresented off-budget impacts.
“Our data show clearly: original projections were off—the real numbers prove this policy is both affordable and beneficial,” Mister added.
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The full report, Cost Analysis of Potential Changes to Tax-Preferred Health Accounts to Permit Expenditures for Dietary Supplements, is available here for download.
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About CRN
The Council for Responsible Nutrition (CRN), founded in 1973, is a Washington, D.C.-based trade association representing 180+ dietary supplement and functional food manufacturers, ingredient suppliers, and companies providing services to those manufacturers and suppliers. In addition to complying with a host of federal and state regulations governing dietary supplements and food in the areas of manufacturing, marketing, quality control and safety, our manufacturer and supplier members also agree to adhere to additional voluntary guidelines as well as to CRN’s Code of Ethics. Follow us on LinkedIn and X @CRN_Supplements.