Final Push for HSA Fitness Coverage as Congress Finalizes Tax Package
Krissy Vann | Host, All Things Fitness and Wellness
As Congress prepares to finalize its tax reconciliation package, there is growing urgency around a proposal that would allow Health Savings Accounts to cover gym memberships, fitness classes, and youth sports. The provision, which would permit individuals to use up to $500 per person or $1,000 per household in pre-tax HSA funds for physical activity expenses, is not currently included in the Senate's version of the bill.
The measure originated as part of the PHIT (Personal Health Investment Today) Act, which has long aimed to classify physical activity expenses as eligible for tax-advantaged medical spending. Although the Senate recently removed the PHIT provision from its draft package, industry advocates are working to reinstate the fitness-related language before the final bill is set.
The Health & Fitness Association is urging fitness clubs and operators across the country to take action. Through its advocacy channels, the organization is asking businesses to share a preformatted letter with their members and staff that can be sent to congressional representatives. The letter, which can be accessed through a provided link, is designed to make it easier for individuals to express their support for including fitness in HSA coverage.
In a LinkedIn post, Mike Goscinski, Vice President of Government Affairs at the HFA, noted that although the Senate removed the PHIT provision, the opportunity to influence the outcome is not yet closed. He called on fitness professionals and club members to voice their support directly to lawmakers.
The proposed change is considered significant for both the fitness industry and public health. Currently, HSA funds can be used for certain medical costs but do not include general physical activity expenses. Proponents argue that allowing fitness-related use of HSAs would encourage preventive health behaviors, potentially reducing long-term healthcare spending.
Industry stakeholders are distributing posters with QR codes, using mobile app notifications, and sending email campaigns to mobilize club members and staff. The call to action is focused on raising awareness among those who would be most directly affected by the legislation.
The timing is critical, as the tax package is nearing completion. If successful, this provision could represent a long-sought policy shift toward recognizing physical activity as an essential component of healthcare spending.
