A bill to amend the Internal Revenue Code of 1986 to include certain over-the-counter dietary supplement products and foods for special dietary uses as qualified medical expenses.

This bill expands the tax deduction for qualified medical expenses to include dietary supplement products (i.e., nutritional products with labeling relating to their effects on bodily functions) and foods for a special dietary use (i.e., vitamins and minerals). The bill also allows payments from certain tax-preferred spending and reimbursement accounts for these products.

[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[S. 3172 Introduced in Senate (IS)]

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118th CONGRESS
  1st Session
                                S. 3172

To amend the Internal Revenue Code of 1986 to include certain over-the-
counter dietary supplement products and foods for special dietary uses 
                     as qualified medical expenses.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                            October 31, 2023

  Mr. Cramer introduced the following bill; which was read twice and 
                  referred to the Committee on Finance

_______________________________________________________________________

                                 A BILL


 
To amend the Internal Revenue Code of 1986 to include certain over-the-
counter dietary supplement products and foods for special dietary uses 
                     as qualified medical expenses.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. INCLUSION OF DIETARY SUPPLEMENT PRODUCTS AS QUALIFIED 
              MEDICAL EXPENSES.

    (a) HSAs.--Section 223(d)(2) of the Internal Revenue Code of 1986 
is amended--
            (1) by inserting ``, dietary supplement products, or foods 
        for a special dietary use'' after ``menstrual care products'' 
        in the last sentence of subparagraph (A); and
            (2) by adding at the end the following new subparagraphs:
                    ``(E) Dietary supplement product.--For purposes of 
                this paragraph, the term `dietary supplement product' 
                means a nutritional product that is labeled with--
                            ``(i) a statement describing how the 
                        product is intended to affect the structure or 
                        function of the human body, or
                            ``(ii) a statement characterizing the 
                        mechanism by which the product acts to maintain 
                        such structure or function.
                    ``(F) Food for a special dietary use.--For purposes 
                of this paragraph, the term `food for a special dietary 
                use' means any food which section 411 of the Federal 
                Food, Drug, and Cosmetic Act (21 U.S.C. 350) 
                applies.''.
    (b) Archer MSAs.--The last sentence of section 220(d)(2)(A) of such 
Code is amended by inserting ``, dietary supplement products (as 
defined in section 223(d)(2)(E)), or foods for a special dietary use 
(as defined in section 223(d)(2)(F)'' after ``menstrual care products 
(as defined in section 223(d)(2)(D))''.
    (c) Health Flexible Spending Arrangements and Health Reimbursement 
Arrangements.--Section 106(f) of such Code is amended--
            (1) by inserting ``, dietary supplement products (as 
        defined in section 223(d)(2)(E)), or foods for a special 
        dietary use (as defined in section 223(d)(2)(F)'' after 
        ``menstrual care products (as defined in section 
        223(d)(2)(D))''; and
            (2) in the heading, by inserting ``M Dietary Supplement 
        Products, and Foods for a Special Dietary Use'' after 
        ``Menstrual Care Products''.
    (d) Effective Dates.--
            (1) Distributions from savings accounts.--The amendment 
        made by subsections (a) and (b) shall apply to amounts paid 
        after December 31, 2022.
            (2) Reimbursements.--The amendment made by subsection (c) 
        shall apply to expenses incurred after December 31, 2022.
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