The Council for Responsible Nutrition (CRN) released a new financial analysis it commissioned which found that expanding Health Savings Accounts (HSAs), Flexible Spending Accounts (FSAs), and similar vehicles (Health Reimbursement Arrangements and Archer Medical Savings Accounts) to cover dietary supplements would cost $12.2 billion over 10 years, a figure 75% lower than previous estimates. The analysis was conducted by John Dunham & Associates.

In total $9.8 billion of that cost would be direct income tax reductions, showing a limited effect on federal revenues. The remainder of the costs would be related to “off-budget effects,” such as costs absorbed by Social Security trust funds, the Postal Service fund, and debt services.

The analysis considered the fact that most account holders don’t rush to spend their own balances, and only 27% of HSA and 36% of FSA holders use these accounts for over-the-counter (OTC) products, indicating limited but meaningful adoption for supplements.

Allowing supplements to be purchased through HSAs/FSAs can help consumers fill nutrient gaps, potentially relieving public health burdens, CRN noted.

“This analysis confirms what we’ve long believed,” said Steve Mister, president and CEO of CRN. “Expanding access to supplements through HSAs and FSAs is commonsense policy; affordable, practical, and good for public health.”

Millions of Americans rely on dietary supplements to maintain health, prevent costly conditions, and address nutrition shortfalls, CRN reported. By unlocking this tax-preferred account spending for supplements, policymakers can close nutrient gaps that contribute to rising healthcare costs and align policy with consumer choice.

According to CRN, previous estimates on budget impact 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 said.