Senators Push Tax Deductions for Healthy Lifestyle Choices
“Here’s the reality: obesity and diabetes are costing taxpayers billions, and we should be using our tax code to incentivize people to stay in shape and out of the health care system.”
By - Would being paid to purchase a new gym membership promote you to take up a new workout routine? Such a concept may soon become a reality, even without a government mandated initiative.
Last week, four United States Senators – John Thune (R-SD), Chris Murphy (D-Conn), Johnny Isakson (R-Ga), and Joe Donnelly (D-Ind) – introduced legislation intended to make specific sports and fitness purchases payable with pre-tax healthcare savings accounts.
During the 113th Congress, The Personal Health Investment Today (PHIT) Act was introduced in the House of Representatives with over 50 bipartisan cosponsors and as part of a greater Senate legislative package, pushing for amendments to the Internal Revenue Code. Neither cleared its respective chamber, according to a Senate press release.
What qualifies for a medical care tax deduction?
If such changes become tangible, medical care tax deductions will be granted for qualified purchases of up to $1,000 per taxpayer or $2,000 for jointly filing married couples or household heads
Numerous sports and fitness purchases are considered allowable for tax deductions, such as signing up for a new gym membership, purchasing fitness equipment, or joining a youth sports league.
Some restrictions apply. Regarding sports equipment, reimbursement for a single item cannot exceed $250. Pre-tax dollars cannot be associated with apparel or footwear.
Similarly, expenses associated with private clubs or facilities such as golf, hunting, sailing, or riding are not considered qualified expenses, according to the legislation.
Senators weigh in on the importance of embracing healthy lifestyles
Each of the four senators confirmed active support for the PHIT ACT within a press release last week.
Said Senator Thune, perhaps the PHIT Act incentives will encourage others to join the movement for expanding purchasing power efforts. “Americans are living healthier, more active lifestyles and prioritizing wellness and prevention for themselves and their families,” Thune stated.
“The PHIT Act encourages families to continue living a healthy lifestyle by making it easier for them to purchase certain fitness-related items using money they’ve already saved in their flexible spending accounts and health savings accounts,” said Thune.
Added Senator Murphy, the PHIT ACT is a solid first step towards encouraging the general population to start incorporating healthy lifestyle changes.
“Gym memberships and sports fees often cost too much," stated Murphy. “Here’s the reality: obesity and diabetes are costing taxpayers billions, and we should be using our tax code to incentivize people to stay in shape and out of the health care system."
Said Senator Isakson, “This legislation empowers Americans to make healthy choices and advances health without creating a new government program.”
“Regular physical activity is a form of preventive health care and one of the most important things you can do for your health,” added Senator Donnelly. Embracing a healthy lifestyle cuts down on disease risk and ultimately keeps healthcare costs low, he maintained.
Healthy lives, healthy revenue cycle
If large groups of people embrace a long-term healthy lifestyle – gym memberships and all – another thing that may remain healthy is revenue cycle management.
As RevCycleIntelligence.com reported, avoidable patient visits cost the healthcare industry a sizable amount of money. Within the state of Minnesota alone, potentially avoidable hospital and emergency department visits cost nearly $2 billion within the span of a single year.
In regard to ever-increasing chronic care conditions, perhaps people generally stay healthy when they simply take proper care of themselves.
