HSA and FSA funds could soon cover toothbrushes and toothpaste tax-free

What does this do?

HR 1219 would amend the tax code to classify FDA-recognized over-the-counter oral care products as approved medical expenses under health savings accounts. Eligible products would include toothbrushes, electric toothbrushes, water flossers, toothpaste, and mouthwash. The change would apply to HSAs, FSAs, Health Reimbursement Arrangements, and Archer Medical Savings Accounts, effective for purchases made after the bill is signed into law.

Who does it affect?

The bill would directly affect the tens of millions of Americans who hold an HSA or FSA through an employer or on their own. People without these types of accounts would not be directly affected.

Why does it matter?

Because contributions to HSAs and FSAs are not taxed, expanding eligible purchases to include routine oral care products would allow account holders to apply pre-tax dollars to everyday dental hygiene expenses. Under current law, most basic oral care items do not qualify as approved medical expenses under these accounts.

Where does it stand?