Analysis of the Impact of the U.S. PHIT Act Setback and Health Savings Account Policies on the Fitness Equipment Industry

HSA/FSA

Analysis of the Impact of the U.S. PHIT Act Setback and Health Savings Account Policies on the Fitness Equipment Industry

In recent years, the U.S. fitness industry has closely followed the legislative developments of the Personal Health Investment Today (PHIT) Act. Recently, during the review process of a tax bill, the U.S. Senate removed the PHIT-related provisions, dealing a blow to the possibility of categorizing fitness expenses as tax-deductible medical expenses.

This news has sparked heated discussions among U.S. fitness service providers and fitness equipment brands and is regarded as a major event with potential industry-wide implications.

This article uses this event as a starting point to analyze the issue in depth from six aspects: the content of the legislation, the health savings account mechanism, industry cooperation cases, future impact, international comparisons, and the role of industry associations.

I.   Content and Background of the PHIT Act and Its Expected Impact on the Fitness Industry

Main Provisions of the PHIT Act:The PHIT Act aims to amend U.S. tax law to classify sports and fitness-related expenses as eligible pre-tax medical expenses. Specifically, it would allow individuals to deduct up to $1,000 annually (or up to $2,000 per household) in qualified fitness expenses from their taxable income.

Eligible expenses under the act include gym memberships, fees for fitness or sports classes, and equipment used to engage in physical activity. In other words, if the PHIT Act were enacted, U.S. consumers could use pre-tax funds from Health Savings Accounts (HSAs) or Flexible Spending Accounts (FSAs) to pay for such expenses, thereby effectively lowering their out-of-pocket costs.

Background and Driving Forces Behind the Act:The PHIT Act is not a new proposal. Industry leaders began advocating for it nearly two decades ago, with the goal of lowering the cost of fitness through tax incentives and increasing physical activity rates. The bill has seen multiple rounds of introduction and stagnation in Congress: it passed the House of Representatives in 2018 but failed in the Senate. In 2023–2024, the proposal was reintroduced with rare bipartisan support.

In recent years, the U.S. government has also placed increasing emphasis on preventive healthcare. For example, the Trump Administration’s “Make America Healthy Again” initiative has positioned fitness as a vital part of preventive health, helping the PHIT Act gain some political momentum. As a result, many in the industry and among analysts had grown optimistic about its potential passage.

Against this backdrop, the House of Representatives included PHIT-related provisions in a 2025 tax bill, allowing individuals to use up to $500 per person or $1,000 per household annually from HSA funds for gym memberships and similar expenses. However, the Senate version of the bill removed these provisions, once again casting doubt on the future of the PHIT Act.

Expected Impact on the Fitness Industry:Although the PHIT Act has not yet become law, its potential impact has been widely discussed. According to research by the Health & Fitness Association (HFA), reducing the cost of fitness by approximately 10% (the expected result of tax deductions) could encourage up to 17 million Americans to begin exercising regularly. This could significantly expand gym membership and sports participation, generating an estimated $12.3 billion in new annual consumer spending.

For fitness equipment manufacturers and retailers, this would represent a massive market expansion—more households would consider purchasing treadmills, strength training equipment, and other home fitness machines, as these expenses could be paid pre-tax or with HSA funds, thus lowering the actual financial burden. Moreover, the increased demand for fitness services and equipment is expected to create approximately 230,000 new jobs, including positions for personal trainers, group fitness instructors, and fitness equipment production personnel.

On a macro level, broader participation in physical activity could prevent hundreds of thousands of chronic disease cases each year and potentially save the healthcare system approximately $12.2 billion in long-term medical costs. Therefore, if passed, the PHIT Act could achieve a dual benefit of driving growth in the fitness industry and improving public health outcomes across the U.S.

HFA advocacy

II. The HSA Mechanism and Its Role in Promoting Fitness Spending

Overview of the HSA Policy Mechanism:

A Health Savings Account (HSA) is a tax-advantaged savings plan within the U.S. healthcare system. Individuals who are enrolled in a qualified high-deductible health plan (HDHP) are eligible to contribute a certain amount of money annually to an HSA. These contributions are tax-deductible, the funds grow tax-free, and withdrawals for qualified medical expenses are also tax-free—a structure commonly referred to as the “triple tax advantage.”

Flexible Spending Accounts (FSAs), on the other hand, are typically employer-sponsored. They allow employees to set aside pre-tax income to cover certain medical or dependent care expenses. While FSAs do not offer investment growth, they provide similar tax benefits on qualified expenses.

Under current regulations, HSA/FSA funds may only be used for “qualified medical expenses” as defined by the IRS, which includes insurance deductibles, prescription drugs, vision and dental services, etc. Unfortunately, routine fitness costs—such as gym memberships and general fitness equipment—are not included in the IRS definition of qualified medical expenses. Therefore, for consumers to use HSA funds to purchase fitness-related products, they generally need to provide documentation of medical necessity, such as a physician’s note prescribing exercise.

Practical Benefits to Consumers:

If fitness-related expenses were officially included in the list of eligible HSA/FSA expenditures, the general public would directly benefit from tax relief. For a typical middle-income household with a marginal tax rate of 20% to 30%, spending \$100 on fitness could result in $20 to $30 in tax savings, effectively making the purchase around 30% cheaper. In some cases, the effective discount could be as high as 40%—as illustrated in the partnership between Peloton and health payment platform TrueMed, where the use of HSA/FSA funds to purchase Peloton’s connected bikes and other products was promoted as a 40% cost saving opportunity for consumers.

Moreover, many Americans contribute to HSA/FSA accounts each year but often find it difficult to fully utilize those funds. For instance, FSA balances must typically be used by year-end or they are forfeited, while HSA balances often accumulate for future medical needs. As of 2024, the combined balances of HSA and FSA accounts across the U.S. totaled approximately $150 billion. If fitness expenses were deemed reimbursable, this substantial pool of pre-allocated health funds could be redirected toward purchasing fitness equipment, paying for exercise programs, and making other **preventive health investments.

For individuals who wish to exercise but are concerned about the associated costs, the HSA offers a readily available and tax-favored funding source, lowering the financial barrier to entry. More importantly, such a change in policy would help reshape public perception by establishing fitness spending as a legitimate form of preventive healthcare, thereby normalizing and justifying such expenditures and subtly transforming consumer behavior and attitudes over time.

Benefits to Fitness Equipment Brands:

An optimized health savings account policy would also create significant opportunities for fitness equipment manufacturers and retailers.

First, enabling HSA payments is akin to leveraging consumer health budgets: since these funds are already allocated and subject to limited use, consumers are more likely to spend them on health-related products, thereby stimulating incremental purchases. According to data from third-party payment platform Flex, enabling HSA/FSA transactions not only attracted a large number of new customers but also increased the average order value and transaction volume. This indicates that when using pre-tax funds, consumers are more willing to purchase higher-priced or additional equipment.

Secondly, offering HSA/FSA payment options can enhance customer loyalty and conversion rates. For example, iFIT, one of the world’s leading fitness equipment brands, began supporting HSA/FSA payments for its NordicTrack and ProForm product lines at the end of 2024. This significantly expanded its potential customer base and improved its checkout experience, resulting in a noticeable boost in sales. By collaborating with professional health payment platforms, brands can easily integrate account-based payment technologies and capture the growth potential of this emerging payment channel.

Lastly, from a branding and industry standpoint, those who are first to meet consumers’ HSA-related spending needs will establish themselves as advocates for consumer health and well-being, gaining competitive edge and brand goodwill. This explains why a growing number of fitness-related companies are proactively aligning with HSA/FSA programs, hoping to convert policy incentives into tangible market advantages.

III. Collaboration Cases Between Fitness Equipment Brands and HSA/FSA Programs

Although the PHIT Act has yet to be enacted, forward-thinking players in the fitness industry have already sought alternative solutions. Through innovative partnerships, they have enabled consumers to indirectly use HSA/FSA funds to purchase fitness products and services.

Below are several representative cases:

Peloton × TrueMed:In October 2024, premium connected fitness brand Peloton announced a partnership with health payment startup TrueMed, launching an “HSA/FSA Payment” option on its official website. When consumers select Peloton bikes, treadmills, and other products, they can choose this option and be redirected to the TrueMed platform, where they follow a process to obtain an online Letter of Medical Necessity (LMN). With this documentation, the purchase qualifies as an eligible medical expense. Once the process is complete, consumers can use their HSA/FSA account balances to pay for the products.

Through this model, U.S. consumers can save up to 40% off the retail price of Peloton equipment—essentially equivalent to making the purchase tax-free. Peloton’s initiative has become a benchmark in the industry, tapping into the estimated $150 billion HSA/FSA market and aiming to make premium fitness equipment more affordable for a broader population.

NordicTrack (iFIT) × Flex:

At the end of 2024, iFIT, parent company of NordicTrack and ProForm, partnered with fintech firm Flex to launch an HSA/FSA payment gateway. Flex provided an API interface that allowed iFIT to complete system integration within just a few weeks. As a result, consumers can now use HSA/FSA funds to purchase NordicTrack treadmills, ellipticals, and other smart fitness equipment without the need for additional documentation.It should be noted, however, that reimbursement eligibility still depends on the specific administrator of the HSA/FSA plan. iFIT clearly advises users on its website to review the terms of their plan. Nonetheless, this initiative has greatly simplified the process, making the use of pre-tax funds for purchasing fitness equipment as easy as swiping a credit card. The strategy has led to significant new customer acquisition and increased revenue for iFIT.

IFIT Products on HSA/FSA List

Tempo × Flex:

Tempo, a newer player in smart fitness mirrors and AI-powered strength training devices, also partnered with Flex in 2024 to allow its products to be purchased using HSA/FSA funds. This demonstrates that not only traditional equipment brands, but also emerging smart fitness startups are actively embracing the trend of health account-based payments.

Gyms and Fitness Classes:

It is worth noting that HSA/FSA collaboration is not limited to equipment brands—fitness service providers are also participating actively. In addition to working with equipment companies, TrueMed has expanded its services to support fitness chains and studios. Notable examples include:

• Crunch Fitness (a gym franchise)

• CrossFit (a functional training brand)

• CorePower Yoga (a national yoga chain)

These companies have all partnered with TrueMed to allow members, after verification, to use HSA/FSA funds to pay for gym memberships and fitness class fees.

Other digital health and technology platforms have also entered the space:

• Dr.B, a telehealth company, provides medical documentation support for members of F45, SoulCycle, and other fitness chains, enabling them to pay for courses with pre-tax accounts.

• Sika Health, a health payment platform, has collaborated with recovery tech brand Hyperice, allowing consumers to use HSA/FSA funds to purchase massage guns, recovery wearables, and other muscle therapy products.

Conclusion of the Cases:

These cases demonstrate that even before any formal legislative change, the market has proactively pursued mechanisms to treat fitness as a form of healthcare spending. Fitness equipment manufacturers and gym operators are leveraging fintech and telehealth services to create pathways for consumers, framing fitness consumption as part of a health intervention.

This approach not only meets consumer demand for utilizing idle health savings to offset fitness costs, but also reinforces the core philosophy behind the PHIT Act: exercise is medicine, and prevention is more effective than treatment.

IV. Potential Impact of Expanding HSA Policies to Cover Fitness Services

If the PHIT Act or a similar policy is enacted in the future, and the range of eligible HSA/FSA expenditures is officially expanded to include fitness services (such as gym memberships, workout classes, and personal training sessions), a chain reaction of effects will likely follow across several stakeholder groups:

Impact on Gyms and Fitness Studios:

First and foremost, membership numbers are expected to rise significantly. When fitness costs become eligible for pre-tax payment, it effectively acts as a discount, making gym memberships more accessible to cost-sensitive consumers. According to estimates by the Health & Fitness Association (HFA), even a 10% reduction** in the cost of fitness could prompt millions of previously hesitant individuals to sign up for gym memberships. As such, the implementation of such a policy could lead to a wave of new customers for gyms and studios.

Secondly, member retention and engagement would improve. When users can pay membership fees consistently through pre-funded health accounts, fitness spending shifts from being a discretionary expense to a recurring health expenditure, increasing both renewal rates and attendance.

Moreover, gyms may begin offering bundled service packages, such as annual memberships combined with personal training sessions, partially or fully payable via HSA funds. Overall, the policy incentive would translate into revenue growth across the fitness industry, potentially leading to expansion in facility size and service offerings.

Impact on Fitness Professionals and Personnel:

Growth in demand will naturally extend to the workforce. More gym members mean more demand for guidance and services, thereby increasing the need for personal trainers and group class instructors. HFA has projected that the policy could create up to 230,000 new jobs in the industry. A large portion of these positions would be service roles such as trainers and rehabilitation specialists, who help meet the health and wellness needs of newly active populations.

Furthermore, if class fees become reimbursable, consumers may be more inclined to purchase higher-value personal training or small group classes, since these expenses become effectively subsidized. This gives trainers the opportunity to reach client segments that previously avoided personal training due to cost. It would also expand the trainer’s market reach and raise income potential.

In the long term, fitness professionals may gain social recognition on par with healthcare workers, as their services are increasingly seen as an integral part of healthcare and disease prevention.

Impact on Consumers:

The most immediate benefit is financial. Through tax deductions or the use of designated account funds, consumers' out-of-pocket expenses for fitness would decrease, transforming fitness from a luxury into an affordable health investment.

This would encourage greater participation in physical activity across income levels and age groups. For instance, families who previously considered gym memberships a luxury may now see them as a viable option for the entire household, due to tax advantages.

Moreover, the social and cultural impact of such a policy should not be underestimated. When the government formally recognizes fitness expenses as part of healthcare, public awareness of the health value of fitness is enhanced. Exercise could be perceived as a necessity—much like buying insurance—rather than an optional activity.

This helps foster a culture of nationwide physical activity** and could lead to long-term changes in consumer behavior. Additionally, a healthier lifestyle may result in reduced individual healthcare costs, with some insurance companies already offering premium discounts or incentives for policyholders who exercise regularly—further reinforcing a positive feedback loop.

Impact on Insurance Companies and the Healthcare System:

From the standpoint of commercial health insurance, increased participation in fitness activities may lead to fewer future claims. Over time, insurers would benefit from improved health among policyholders and lower chronic disease risk, which would in turn reduce the frequency of high-cost claims.

This may prompt insurers to more actively promote wellness management programs, and even to subsidize fitness costs directly as a preventive health measure. In fact, some U.S. insurance plans already reimburse gym membership fees or offer HSA contribution bonuses for achieving specific fitness goals, such as meeting a daily step count.

If policies like PHIT are passed, the insurance industry may begin to systematically incorporate fitness into product design—for instance, launching high-deductible health plans with fitness benefits, or partnering with fitness chains to offer discounts for insured members. These would serve as competitive advantages to attract health-conscious customers.

From the perspective of public healthcare systems such as Medicare and Medicaid, improved population health would ease the fiscal burden of government healthcare spending. PHIT Act advocates emphasize this point, calling it a "smart investment in preventive medicine," with the potential to prevent 500,000 cases of chronic illness annually and save the healthcare system approximately $12.2 billion.

Of course, in the short term, the federal government may lose tax revenue due to expanded deductions, which requires careful balancing. But from a broader societal standpoint, the philosophy of "prevention is better than cure" has gained widespread consensus.

The World Health Organization (WHO) has highlighted physical inactivity as the fourth leading risk factor for global mortality, causing approximately 3.2 million deaths per year, and leading to an estimated $54 billion in direct healthcare costs and productivity losses globally.

Therefore, for both the insurance sector and public health authorities, expanding support for fitness is increasingly viewed as a forward-looking and cost-effective investment.

V. International Policy Comparisons: Lessons from Global Fitness Tax Incentives

In encouraging public participation in physical activity, several other countries have experimented with tax incentives or similar policies—offering valuable lessons that the U.S. could draw upon:

Canada:

As early as 2007, the Canadian federal government introduced the Children’s Fitness Tax Credit, which allowed parents to claim a tax credit for eligible physical activity expenses for children under the age of 18. Initially capped at CAD 500 per child per year and later raised to CAD 1,000, the credit was in effect for nearly a decade. It was found to have a positive impact on youth sports participation.

However, research revealed that the primary beneficiaries were middle-income families who were already enrolling their children in sports, with limited impact on low-income households or children who were completely sedentary. In 2016, the federal government discontinued the national version of the credit, opting instead to support other health-focused programs.

That said, some provincial governments continued or introduced their own local fitness tax credits. For example, Manitoba and Newfoundland still offer annual tax deductions ranging from CAD 500 to 2,000 per child, depending on the program.

Canada’s experience highlights the importance of designing tax incentives that are broadly accessible and accompanied by public education campaigns. Without these, the benefits may disproportionately favor populations who already engage in fitness, limiting the policy's potential to foster broad-based behavioral change.

Romania:

In 2023, Romania took a bold step forward by including gym membership fees as an income tax-exempt employee benefit. Under new legislation passed by the Romanian Parliament, companies that provide gym memberships for employees can receive a personal income tax exemption of up to €400 per employee per year.

In practice, this means that when a company reimburses employees for fitness subscriptions within this limit, it is not counted as taxable income for the employee and is tax-deductible for the employer. Effectively, the government is helping to subsidize workplace fitness expenses, with the goal of improving workforce health.

Romania Active, the country’s fitness industry association, played a key role in lobbying for the legislation. Association president Kent Orrgren noted that multiple rounds of discussions with the government led to successful policy implementation.

Romania’s model demonstrates the viability of corporate-sponsored fitness incentives: employees benefit directly, companies improve their public image and productivity, and the state reduces long-term healthcare costs.

The policy proved very popular during its early phase. However, at the end of 2023, the government revised the rules to address potential abuse, lowering the exemption cap to €100 if the employee contributes part of the cost—a reminder that incentive programs must balance accessibility and regulatory safeguards.

France:

France has adopted a more indirect but equally innovative approach. Since 2021, the French government has allowed companies to provide certain physical activities to employees without being subject to social security contributions—a significant cost consideration in France.

The specific regulation states that when employers provide group fitness spaces or subsidize employee participation in physical activities (e.g., yoga classes, group workouts, company sports teams), they can deduct these costs from their social security contribution base.

The exemption cap is set at 5% of the annual social security base per employee**, which amounted to around €171.40 per person in 2021.

Though the benefit is modest in monetary terms, it reduces the cost burden for companies seeking to promote employee wellness, encouraging more firms to open on-site gyms or reimburse class expenses.

This is akin to a tax credit but delivered via the social security system, reflecting France’s strategy of socializing preventive healthcare. While not a primary driver of change on its own, this policy fits within France’s broader culture of comprehensive workplace benefits, such as meal vouchers and vacation stipends—showing how employers can play a central role in building healthy habits.

Australia and Other Countries:

In Australia, the fitness industry has also pushed for legislation similar to the PHIT Act. In early 2024, the industry association AUSactive submitted a proposal to the Australian government, urging the recognition of gym memberships as eligible pre-tax expenses and calling for greater tax relief on employer-sponsored fitness benefits.

Public health experts in Australia generally supported the initiative, stating that any measures that encourage physical activity are beneficial, but emphasized that tax incentives must be paired with public education to maximize effectiveness.

As of now, the proposal is still under review, pending an assessment by the national treasury. This example illustrates that the push for policy support of fitness is not unique to the United States, but is part of a global trend—with variations in implementation. Some countries emphasize personal income tax deductions, others focus on employer-sponsored exemptions, and some offer insurance discounts or healthcare-related incentives for physically active individuals.

Despite the diversity in approaches, the underlying logic remains the same: using economic levers to encourage widespread participation in fitness, thereby reducing healthcare costs and improving public health.

Conclusion:

Drawing from international experiences, the U.S. could design the PHIT Act to reflect the following three key principles for success:

1. Broad accessibility – Ensuring the policy benefits individuals across income levels, not just existing fitness users.

2. Sufficient incentive strength – Making the tax benefit substantial enough to drive real behavior change.

3. Regulatory safeguards – Preventing misuse of benefits and ensuring funds are spent on legitimate health-enhancing activities.

At the same time, tax incentives should be supplemented with infrastructure development, such as the expansion of fitness venues and public campaigns promoting physical activity. Only through a comprehensive, system-level approach can policy incentives be converted into tangible public health gains.

VI. HFA’s Role, Strategies, and Influence in Policy Advocacy

The Health & Fitness Association (HFA), as the national trade association representing the U.S. fitness industry, has played a critical role in the advocacy efforts surrounding the PHIT Act. Formerly known as IHRSA (International Health, Racquet & Sportsclub Association), HFA represents a broad coalition of stakeholders, including gym operators, fitness equipment manufacturers, professional training organizations, and wellness providers. HFA’s mission is to represent the fitness industry on both policy and market fronts, and to encourage more Americans to participate in physical activity.

In its push for the PHIT Act, HFA has deployed several key strategies and initiatives:

Advocacy Coalition Building and Representation of Interests:

Since the PHIT Act was first introduced, HFA has positioned itself as the primary advocate and coalition builder. The association has united its members—ranging from large fitness chains to home equipment brands—to present a unified industry stance to lawmakers.

At the 2025 HFA Summit, HFA President Liz Clark stated:

“We are not here in Washington as observers. We are here as advocates—as business leaders, employers, health and wellness providers, and as the voice of the millions of Americans whose lives are impacted by our industry.”

This statement reflects how HFA views itself as a representative not only of the fitness industry, but also of its millions of consumers. Given that the PHIT Act touches on memberships, equipment, and youth sports—all areas with aligned stakeholder interests—HFA has effectively leveraged its coalition to speak with a unified and amplified voice in legislative discussions.

Lobbying and Policy Influence:

HFA understands that lobbying is an essential component of U.S. policymaking. Every year, the association hosts a “Fly-In Policy Summit,” during which executives from member companies travel to Washington, D.C., to meet with legislators.

At the May 2025 Fly-In, 135 industry representatives—the largest group in the event’s history—visited over 100 congressional offices, including more than 20 direct meetings with senators and representatives. They emphasized the importance of the PHIT Act, framing fitness expenses as preventive healthcare that would improve public health outcomes and reduce national healthcare costs.

To strengthen their message, the representatives cited data from HFA research, such as the PHIT Act’s potential to:

• Get 17 million more Americans physically active, and

• Save the healthcare system $12.2 billion annually.

HFA even organized a "Congressional Fitness Day", inviting lawmakers to participate in morning workouts alongside fitness professionals to personally experience the benefits of exercise.

Beyond the PHIT Act, HFA also used the lobbying sessions to raise other important policy concerns, such as:

• Tariffs on fitness equipment,

• FTC regulations on subscription cancellation, and more.

This multi-issue, multi-level advocacy strategy, combined with HFA’s longstanding political relationships (including with the legislators sponsoring PHIT in both chambers), has made HFA a powerful voice in fitness-related legislation.

Grassroots Mobilization and Public Engagement:

In addition to top-level lobbying, HFA places great importance on activating grassroots stakeholders. When the Senate removed PHIT provisions from the tax bill, HFA immediately issued a nationwide call to action, urging gym owners and equipment suppliers to write to their congressional representatives in support of including fitness expenses under HSA eligibility.

HFA provided a user-friendly online portal for contacting members of Congress and encouraged gym owners to share the link with their members, enabling everyday fitness enthusiasts to make their voices heard on Capitol Hill.

In a letter to HFA members, Vice President of Government Affairs Mike Goscinski wrote:

“This is a commonsense, prevention-centered policy that delivers tax relief, promotes better health outcomes, and increases youth access to physical activity. The House Ways and Means Committee has recognized its importance, and we must ensure that Congress includes it in the final bill.”

This statement underscores the multi-faceted value of the legislation and reflects HFA’s public framing strategy—positioning the PHIT Act as a rational, win-win solution while framing opponents as standing against preventive health.

To amplify visibility, HFA also leveraged industry media outlets  to disseminate information and build favorable public sentiment, creating a media environment conducive to policy support.

Political Fundraising and Cross-Sector Alliances:

Like many U.S. trade associations, HFA engages in political fundraising to support policy-friendly candidates. Through its affiliated political action committee, FITPAC, HFA provides campaign contributions aligned with its legislative priorities.

HFA also seeks partnerships beyond the fitness sector. It actively collaborates with healthcare and public health organizations such as:

• The American Heart Association

• The American College of Sports Medicine

These groups share HFA’s belief in the health benefits of physical activity and can form cross-sector coalitions to strengthen advocacy efforts.

At the state level, HFA has local affiliates that address state-specific issues, including:

• Reopening gyms post-COVID,

• Public health mandates, and

• Regional tax and licensing policies.

HFA also organizes events like National Fitness Day and Fitness Walks to raise awareness and broaden its influence in public health policy discussions.

Evaluation of Industry Advocacy Effectiveness:HFA’s efforts around the PHIT Act offer a textbook example of how a trade association can influence national policy. Through data-driven arguments, grassroots mobilization, coordinated lobbying, and strategic media engagement, HFA has demonstrated its ability to aggregate stakeholder interests and convert them into legislative momentum.

Although the PHIT Act has faced repeated setbacks and has not yet become law, HFA’s work has elevated the issue in political discourse and gained widespread public support. According to recent polling, 85% of Americans support expanding HSA eligibility to include fitness expenses—a testament to HFA’s successful awareness campaigns.

Of course, the influence of an industry association depends on both the political environment and the consensus around the issue. In this case, bipartisan support for preventive fitness made HFA’s work more feasible. In more contentious policy areas, achieving change would require even more negotiation, compromise, and strategic alignment.

Conclusion:

While the removal of the PHIT provisions in the Senate represents a temporary setback for the industry, the long-term trend of using tax and financial incentives to promote public fitness is irreversible. Fitness equipment brands and investors in the U.S. should closely monitor policy developments and actively participate in HFA-led advocacy efforts.

Even before full legislation is enacted, companies can emulate industry pioneers by collaborating with HSA/FSA service platforms to position themselves for future growth in this emerging market.

Looking ahead, if the PHIT Act is eventually passed, the entire fitness ecosystem—from manufacturers and gyms to trainers and insurers—will benefit, achieving both commercial success and public health impact. As HFA has aptly stated, this represents a "once-in-a-generation opportunity." Only through industry-wide unity and proactive innovation can the sector ride this policy momentum, integrate fitness into national health strategy, and realize a new phase of industry evolution and population wellness.

Author - Fit Gear Source