A bipartisan group of lawmakers reintroduced the Personal Health Investment Today (PHIT) Act, which has been floating around in Congress since 2006 but could have a renewed shot at passing under the administration of President Donald Trump.
On Wednesday, U.S. Sens. John Thune (R-S.D.) and Chris Murphy (D-Conn.), and U.S. Reps. Mike Kelly (R-Pa.) and Jimmy Panetta (D-Calif.), reintroduced the bill, which seeks to make fitness and sports-related purchases more affordable for Americans.
More specifically, the PHIT Act would amend the IRS tax code to allow Americans to spend pre-tax healthcare dollars from health savings accounts (HSA) and flexible spending accounts (FSA) on fitness-related purchases like gym memberships and workout equipment, along with sports-related purchases like sports equipment and league membership dues.
“For some Americans, certain gym or athletic league membership costs can be prohibitive, keeping them from pursuing healthy habits like exercising or participating in other physical activities,” Thune said in a statement. “The PHIT Act would reduce some of the cost barriers that Americans face when pursuing healthy lifestyles and make it easier and more affordable for folks to stay active throughout their lives.”
“By giving Americans greater flexibility with their HSAs and FSAs, we can empower people to make healthy choices, get active, and hopefully prevent the onset of costly chronic conditions as we work to make America healthy again,” Thune added.
The PHIT Act has long been championed by fitness industry stakeholders including the Health & Fitness Association (HFA), who believe the bill will go a long way in getting more Americans inside gyms and studios.
“Nearly 60% of Americans say cost is a major reason they don’t use fitness facilities,” HFA president and CEO Liz Clark wrote in a note to HFA members. “The PHIT Act is a smart investment in prevention. It helps families take charge of their health, supports local fitness businesses and ultimately saves the healthcare system billions.”
According to HFA research, the PHIT Act could inspire up to 17 million more Americans to become physically active and save an estimated $12.2 billion in healthcare costs. The organization also says the bill could generate up to $12.3 billion in additional consumer spending and create 230,000 new jobs.
A New Chance for the PHIT Act?
While the PHIT Act enjoys broad support from the public – 85% of Americans including roughly equal numbers of Democrats, Republicans and Independents support the expansion of pre-tax fitness eligibility, per HFA – it’s yet to break through the gridlock of Congress and become law.
Some political insiders believe the PHIT Act has a better chance to pass under the Trump administration’s “Make America Healthy Again” movement, which seems to emphasize the importance of preventive healthcare measures like healthy eating and physical activity.
Speaking at Athletech News’ CEO Summit earlier this year, HFA executives said they were bullish on the fitness industry’s future under President Trump.
“We’re super excited because we’re facing an administration (where) for the first time … we see a receptive voice to understanding the benefits of physical activity and the intervention that’s needed from the federal government to allow more people to have access to it,” HFA vice president of government affairs Mike Goscinski said.
The PHIT Act also enjoys broad support from sports organizations and leagues, including the Sports and Fitness Industry Association (SFIA) and the NFL.
HFA will host its annual Fly-In and Advocacy Summit on May 6-7 in Washington, D.C., where fitness industry leaders meet with members of Congress in an effort to push for beneficial legislation including the PHIT Act.
