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PHIT Act

From Wikipedia, the free encyclopedia

The Personal Health Investment Today (PHIT) Act - H.R.1679 and S.680 is bipartisan legislation that would allow Americans to use flexible spending accounts (FSAs) and health savings accounts (HSAs) to pay for fitness equipment, exercise videos, participation fees associated with youth sports leagues, and health club memberships.

Currently, the IRS code allows these accounts to be used for traditional medical expenses like prescription medications and doctor visits. If passed, PHIT will allow individuals to use up to $1,000 per year to cover exercise-related costs and families to use up to $2,000 per year. Consumers will be able to save 20 to 30% on fitness expenses through the use of pre-tax accounts.[1]

PHIT supporters say the aim is to make the healthy choice the easiest choice for families and individuals. The bill amends the IRS definition of a medical expense to include exercise-based preventative expenses. Decades of research prove that leading a physically active lifestyle is integral to good health. Physical inactivity and obesity are associated with several types of cancer, diabetes, Alzheimer's, and a host of other ailments that are detrimental to our health, pocketbooks, and economy.[2]

What the PHIT Act Would and Would Not Cover

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In its current form, the PHIT Act would create a tax incentive for qualified sports and fitness expenses.

Expenses that would be covered include

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  • health club memberships
  • personal training services
  • exercise DVDs
  • exercise equipment
  • exercise competition fees (e.g., 5k entrance fee, marathon)
  • yoga and other group fitness classes
  • sports camps and clinics

Expenses that would not be covered include

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  • membership fees at specific private clubs
  • footwear and apparel that can be utilized outside of sport/exercise (e.g., sneakers or yoga pants)

Cost of PHIT

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As of 2018, the Joint Committee on Taxation (JCT) estimates the cost of this bill to be $3.5 billion over the next 10 years.[3] The federal budget for just the 2020 fiscal year was set at $4.79 trillion.[4][5] Assuming similar yearly budgets over the next decade, PHIT would cost 0.007% or less than 1/100 of 1% of the federal budget over the next decade.

There is ample evidence showing that health care savings derived from Americans becoming more active would offset this cost. According to the Centers for Disease Control, $117 billion in annual health care costs are associated with inadequate physical activity.[6][7]

In 2019, a bipartisan group of Congress members introduced the Preventive Health Savings Act of 2019, which would direct the Congressional Budget Office (CBO) to more accurately reflect the cost-savings of preventive healthcare, including health screenings. This would allow Congressional Committees reviewing healthcare legislation—like the PHIT Act—to request up to two additional ten-year projection windows to provide a better understanding of the legislation's long-term effect on the nation's healthcare spending.[8]

Congress Members Who Have Introduced PHIT

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The PHIT Act was first introduced in the House on May 25, 2006.

Year Sponsor
2006 Rep. Jerry Weller (R-IL)
2006 Rep. Jim Ramstad (R-MN)
2006 Rep. Bill Shuster (R-PA)
2006 Rep. Sanford Bishop (D-GA)
2006 Rep. Adam Smith (D-WA)
2007 Rep. Jerry Weller (R-IL)
2009 Rep. Ron Kind (D-WI)
2011 Rep. Kevin Brady (R-TX)
2013 Rep. Ron Kind (D-WI)
2015 Rep. Charles Boustany (R-LA)
2018 Rep. Jason Smith (R-MO)
2019 Sen. John Thune (R-SD)

PHIT Bill Numbers in Previous Congress Sessions

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Congress House Bill Number Senate Bill Number
109th Congress H.R. 5479 (Introduced May 25, 2006) N/A
110th Congress H.R. 245 N/A
111th Congress H.R. 2105 N/A
112th Congress H.R. 2649 N/A
113th Congress H.R. 956 N/A
114th Congress H.R. 1218 S. 2218 (Introduced in Senate for 1st time, Oct 2015)
115th Congress H.R. 6312, H.R. 1267 S. 482
116th Congress H.R. 1679 S. 680
117th Congress H.R. 3109 S. 844

Bills PHIT Has Been Attached To

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In 2018, during the 115th Congress, PHIT was attached to H.R.6199 - Restoring Access to Medication and Modernizing Health Savings Accounts Act of 2018.

Total PHIT Sponsors Per Congressional Session

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Congress House/Senate Bill Number Total Sponsors Number of Bill Co-Sponsors Democrat Sponsors Republican Sponsors Third-Party Sponsors
109th Congress H.R. 5479 (Introduced May 25, 2006) 10 10 3 7 N/A
110th Congress H.R. 245 25 25 8 17 N/A
111th Congress H.R. 2105 23 23 11 12 N/A
112th Congress H.R. 2649 27 27 15 12 N/A
113th Congress H.R. 956 50 50 26 24 N/A
114th Congress H.R. 1218 101 89 51 38 N/A
S. 2218 12 7 5 N/A
115th Congress H.R. 6312, 153 2 1 1 N/A
S. 482 16 6 9 1
H.R. 1267 135 71 64 N/A
116th Congress H.R. 1679 109 95 49 46 N/A
S. 680 14 4 9 1

PHIT Passes the House of Representatives

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On August 8, 2018, the Personal Health Investment Today (PHIT) Act passed the House of Representatives for the first time, as part of a larger HSA bill package (H.R. 6199) by a vote of 277 to 142. However, the 115th Congress adjourned before the Senate could vote.[9]

Since the Senate was unable to vote on PHIT before adjourning the 115th Congress, PHIT will need to pass House again in the current Congress before it can become a law.

References

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  1. ^ "Apply Pressure Here: PHIT Coalition Seeks Bipartisan Support for PHIT Act in Divided Congress". ClubIndustry. 28 May 2019. Retrieved 2020-07-31.
  2. ^ CDC (2020-05-19). "Physical Activity". Centers for Disease Control and Prevention. Retrieved 2020-07-31.
  3. ^ "Description Of An Amendment In The Nature Of A Substitute To The Provisions Of H.R. 6312, The "Personal Health Investment Today Act" Or The "PHIT Act"". July 10, 2018.
  4. ^ "H. Rept. 115-846 - THE PERSONAL HEALTH INVESTMENT TODAY ACT OR THE PHIT ACT". www.congress.gov. Retrieved 2020-07-31.
  5. ^ "Federal Budget: Breaking down the US Federal Budget | Charts and Graphs". www.itsuptous.org. Retrieved 2020-07-31.
  6. ^ "Fact Sheets & Infographics | Physical Activity | CDC". www.cdc.gov. 2019-03-24. Retrieved 2020-07-31.
  7. ^ "Physical Activity Builds a Healthy and Strong America [PDF-2.53MB], Infographic, CDC" (PDF). CDC. March 24, 2019.
  8. ^ "King Introduces Bill to Encourage, Incentivize Preventive Healthcare". www.king.senate.gov. Retrieved 2020-07-31.
  9. ^ "PHIT Passes House For First Time, Makes History". IHRSA. Retrieved 2020-07-31.

Further reading

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