Making moves on oral health: expanding FSA and HSA eligibility for dental hygiene products
The landscape of healthcare expenses is constantly evolving, with new products entering the market and subsequently gaining approval for inclusion in the 213(d) medical expense list. While some surprising items, like monitors, massagers, heat wraps, electrolyte water mixes, light therapy devices and foot circulators are eligible, there remains a notable gap: over-the-counter dental products. Toothpaste, floss, mouthwash and toothbrushes are conspicuously absent from the list, despite their essential role in oral health. A group of bipartisan congressmen are looking to change that.
The bill: H.R.8599
On June 3, 2024, U.S. Congress introduced H.R.8599, a bipartisan effort aimed at rectifying this oversight. The bill, sponsored by Rep. Jeff Van Drew (R-NJ) and is co-sponsored by Rep. Bradley Scott Schneider (D-IL), Rep. Nicole Malliotakis (R-NY) and Rep. Jimmy Panetta (D-CA), looks to expand the eligibility criteria for Flexible Spending Accounts (FSAs) and Health Savings Accounts (HSAs).
Proposed changes
If passed into law, the bill would allow dental hygiene products to be purchased using pre-tax FSA and HSA funds. These products include:
- Toothbrushes
- Water flossers
- Dental floss
- Anticaries (cavity-fighting) products
- Antiplaque products
- Anti-gingivitis drugs and products
Currently, FSAs and HSAs cover dental expenses, such as x-rays, tooth extractions, fillings, dentures, caps, crowns, implants and fluoride treatments. However, everyday preventable over-the-counter products have been excluded from these tax-advantaged accounts.
Benefits of inclusion
Expanding the eligibility list to include dental hygiene products has several advantages:
- Cost savings: Millions of Americans would benefit from using pre-tax dollars for preventative care. By promoting the use of these products, we can reduce the incidence of more costly dental treatments down the line.
- Consumer-driven healthcare: Including oral care items aligns with the consumer-driven approach to healthcare. Empowering individuals to plan and invest in prevention fosters better overall outcomes.
- Budgeting and financial wellness: Allowing FSA and HSA-funds for dental hygiene products helps individuals budget for essential daily-use items while preserving take-home pay.
Joining other preventative products
Should H.R.8599 progress to passage, oral care products will join other notable preventative care and treatment items already eligible for FSA and HSA reimbursement. These include sunscreen, high blood pressure monitoring devices, menstrual products and diabetes screening supplies.
As industry stakeholders, we welcome efforts to promote the bill’s passage. By expanding the list of eligible expenses, we can enhance tax savings, encourage preventative care and support individuals in managing their healthcare costs effectively.
