The Personal Health Investment Today Act (H.R. 2105)

The following is detailed information on the Personal Health Investment Today (PHIT) Act (H.R. 2105). This bill is currently before the U.S. House of Representatives Committee on Ways & Means. If you would like to support this bill, join the virtual march on Washington by visiting http://campaign4health.org.

The PHIT Act (H.R. 2105) would eliminate a federal policy barrier and create a financial incentive for Americans to engage in physical fitness and exercise.

Americans could utilize up to $1,000 annually from their tax-favored accounts (such as FSAs and MSAs) to make expenditures related to organized individual and team sports, fitness and exercise, recreation and other physical activities. The PHIT Act would not increase the total contribution limits to those pre-tax accounts.

• 64% of American adults and 34% of American children suffer from overweight, obesity, and physical inactivity. These rising rates of obesity and Americans’ proclivity for inactivity are resulting in double digit annual increases in healthcare costs to the government and business.

• The Centers for Disease Control and Prevention (CDC) estimates that healthcare costs directly associated with inactivity were $76.6 billion in 2000; roughly one-third of those costs ($25 billion) fall directly on U.S. taxpayers since approximately one in three Americans is covered by a taxpayer-funded health plan.

• The PHIT Act would help to reverse the trend of increasing physical inactivity and obesity by eliminating a federal policy barrier and providing an important tax incentive to promote exercise.

• Public health experts agree that regular physical activity substantially reduces the risk and symptoms of numerous chronic diseases and medical conditions, resulting in fewer hospitalizations, physician visits, medications and lower health care costs.

• The PHIT Act would change the types of expenditures that could be payable out of tax-favored investment accounts: flexible spending accounts (FSAs), medical savings accounts (MSAs) and/or medical reimbursement arrangements.

• Under the current set-up, Americans predominantly use pre-tax accounts to pay for treatment and detection of illnesses: prescription drugs, doctor visits, examinations and screenings.

• The PHIT Act would allow consumers to to pay with pre-tax dollars for prevention in the form of increased physical activity, including:

• fitness center dues
• group exercise classes
• youth sports league fees
• some exercise equipment
• other fees associated with physical activity programs

• Depending upon their income tax bracket, the PHIT Act could help Americans save 20-30% on the cost of physical activities, exercise programs and related expenses.

• The PHIT Act tax incentive represents an important tangible benefit that the federal government can provide to promote healthier lifestyles and reverse the rising costs of treating obesity-related chronic diseases.

• Fitness-related tax savings would provide a great incentive for Americans to take an important first step toward reversing their sedentary lifestyles and lowering healthcare costs.

Why is the PHIT Act necessary?
The PHIT Act would eliminate a federal policy barrier and create a financial incentive to engage in physical fitness and exercise.

What will the PHIT Act do?
The PHIT Act would change the types of expenditures that could be payable out of tax-favored investment accounts (such as FSAs and MSAs). Under the current set-up, Americans predominantly use pre-tax accounts to pay for treatment and detection of illnesses: prescription drugs, doctor visits, examinations and screenings.

The PHIT Act would allow consumers to set aside up to $1,000 ($2,000 per family) annually from their tax-favored accounts to make expenditures related to prevention in the form of increased physical activity, allowing fitness center dues, payments for some exercise equipment, and other fees associated with physical activity programs to be paid with pre-tax dollars.

What will the PHIT Act cost?
IHRSA has met with the Congressional Joint Committee on Taxation and has requested an immediate “score” for the PHIT Act, which will determine the total cost of implementing the bill over a ten year period.

Who is supporting the PHIT Act?
IHRSA has gathered broad support for the PHIT Act during previous sessions of Congress. The PHIT Act was re-introduced in the U.S. House of Representatives on April 27, 2009 by Representative Ron Kind (D-WI) and referred to the House Committee on Ways and Means. Co-sponsors, at the time of introduction, include Representatives Earl Blumenauer (D-OR), Kevin Brady (R-TX), and Zach Wamp (R-TN). (Full co-sponsor list.)

Legislating a Healthier Future for Our Children

The following is an excerpt from the June 2009 issue of Club Business International, IHRSA's monthly magazine reaching almost 25,000 fitness professionals around the world.

The children of America are on the verge of a health crisis—and, ultimately, so, too, is the nation’s healthcare system. About one in three children and youth are already overweight or obese. In fact, today’s kids could be the first generation of Americans to live shorter lives than their parents.

Across the spectrum, it’s widely agreed that a lack of physical activity and poor nutrition are two of the leading culprits. According to the Alliance for a Healthier Generation, an initiative of the William J. Clinton Foundation, 92% of elementary schools do not offer daily physical education classes year-round, and only about 20% of high school students report eating fruits and green vegetables five or more times a day.

Fortunately, there’s a growing awareness of the issue. Congress, many state legislators, the Centers for Disease Control and Prevention (CDC), the Surgeon General, and political leaders are actively working to improve the health of America’s kids.

So far this year, 26 states have introduced physical education (PE) legislation. Many of the bills seek to impose specific requirements on PE programs’ weekly duration, standards, and implementation requirements, or create an assessment mechanism. In Illinois, House Bill 2291 proposes requiring each school board to have an annual assessment on the physical fitness levels of all students in grades five, seven, and nine. The results would be available in report cards, along with the average number of minutes of exercise PE students receive per week at each grade level.

Legislators in Mississippi are taking a different approach. They’re currently considering House Bill 791, which would require that children’s Body Mass Index (BMI) be measured starting in kindergarten and then every other year through tenth grade. The results, including percentile and an explanation, would be provided to parents. Montana is also considering a similar bill.

During these tough economic times, three states are currently weighing the merits of tax credits to encourage physical activity among youth. In Illinois and Maryland, families could be eligible for $500 tax credits for qualified youth physical fitness programs. The Maryland bill is part of a broader legislation that also includes tax credits for adults and seniors, including $500 tax credits for health club membership dues.

In 2007, the Canadian government began providing parents with a $500 children’s fitness tax credit for eligible expenses for children under age 16. While the U.S. federal government doesn’t offer such an incentive, the Personal Health Investment Today (PHIT) bill, one of IHRSA’s signature pieces of proposed federal legislation, would allow parents to pay for children’s physical fitness expenses with money from their family’s pre-tax savings account. These accounts are typically used for such health-related costs as doctor visits and prescription drug co-pays. This bill would allow parents to pay for exercise expenses that could prevent diseases associated with obesity. The pre-tax savings would grant many families access to youth fitness activities, such as little league and soccer. [Advocate for passage of the PHIT Act on campaign4health.org.]

It’s not just legislators who are taking aim at childhood obesity. Acting Surgeon General Rear Admiral Steven K. Galson, M.D., M.P.H., has launched an initiative called Healthy Youth for a Healthy Future. The goal of the program is to highlight local communities that are coming together to motivate kids to exercise and eat nutritious foods as well as teaching them to make healthy choices.

“Teaching our children the importance of eating well and being physically active at a young age is crucial to reversing the trend of obesity in this country,” said Galson. “Everyone has a role to play in this fight to prevent childhood obesity.”

IHRSA actively supports efforts to improve the health of children through physical activity and proper nutrition. In 2008, via work with the National Coalition for Promoting Physical Activity, IHRSA supported the addition of PE requirements in the Elementary and Secondary Education Act in Congress.

For more information, visit www.ihrsa.org/publicpolicy.

Baucus, Grassley Release Report on Financing Health Care Reform

The following is an excerpt from Capitol Report, a weekly e-newsletter from IHRSA Public Policy. IHRSA Members- subscribe today!

On Monday, Senate Finance Committee Chairman Max Baucus (D-Mont.) and Ranking Member Chuck Grassley (R-Iowa) released a report on policy options for financing comprehensive health care reform. This is the third and final report from the Committee before they begin to mark up legislation in June. Three potential areas for funding are explored in the report; two are significant for IHRSA’s health promotion efforts.

One section the report explores current health care tax expenditures. Among those, are nine different policy options including modifying or eliminating Flexible Spending Accounts (FSAs). Any change to FSAs is of particular importance to the fitness industry as it is the main tax vehicle for the Personal Health Investment Today (PHIT) Act (H.R. 2105).

While this report is not an outline of legislation that the Committee will consider, it does indicate the direction of the policies the Committee could well pursue. IHRSA has been and continues to heavily lobby members of the Senate Finance Committee and other Senators for their support of the PHIT Act. In fact, two Senators have expressed strong interest in introducing the bill in the Senate (it is currently, and historically has been, introduced in the House only). Fitness professionals are also speaking out. Earlier this month during the Summit for a Healthier America, fitness professionals met with staffers on the Committee and the offices of Senators on the Committee. It will be vital to the potential inclusion in any health care reform legislation that there is vocal support for Americans to continue to have access to FSAs and that FSAs be expanded to encourage healthy lifestyles.

The Senate report did address lifestyle tax proposals to “promote wellness and healthy lifestyle choices, and curb activities that increase overall health care costs.” The two policy options presented included the taxation of alcoholic beverages and excise tax on sugar-sweetened beverages. These measures demonstrate the Committee’s recognition that tax policy is a proven way to effect individual behavior change.

While these policies might “curb activities that increase overall health care costs” they do not go far enough to “promote wellness and healthy lifestyle choices.” Diet is only one part of the balance needed for a healthy lifestyle. Physical activity provides health benefits that diet alone cannot achieve. IHRSA will continue to lobby the Finance Committee and key Members of Congress for their support of tax policies that encourage physical activity as part of health care reform.

While IHRSA lobbies key Members, it is important that all Members of Congress hear from fitness professionals in their districts about the power of exercise and its impact on the people that they represent on Capitol Hill. You can make your voice heard by joining the Campaign for a Healthier America’s virtual march on Washington.

- Breanne McGahey

Campaign for a Healthier America

The Campaign for a Healthier America is a national grassroots project bringing together exercise enthusiasts to make healthy lifestyles a priority for all Americans.

The Campaign seeks to bring the fitness industry together with government, employers, medical and public health professionals, insurance providers, schools, and each of us individually.

We must work as one to create a culture and environment of wellness. To achieve this, we will:
- Encourage regular exercise and healthy eating for people of all ages and physical conditions
- Engage Americans in grassroots efforts to make their communities healthier
- Ask policymakers to encourage exercise by creating tax incentives and removing financial barriers

Learn more about the Campaign for a Healthier America and how you can join the movement by visiting, campaign4health.org.