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Tax-advantaged savings accounts in the United States that help people pay for health care would be extended to cover veterinary fees and pet insurance, under a proposed federal law.

The law's backers maintain that it will make veterinary care more affordable amid rising prices blamed on everything from a shortage of practitioners to supply chain bottlenecks.

The bipartisan bill — introduced by Deborah Ross, a Democrat in North Carolina, and Claudia Tenney, a Republican in New York  — would allow veterinary expenses to be paid from health savings accounts (HSAs) and flexible spending accounts (FSAs).

Through HSAs and FSAs, people can set aside money for medical expenses that isn't subject to federal income tax. Both types of accounts may be offered by employers to their workers; HSAs also can be taken out by individuals.

About one in five Americans report having an HSA or FSA, according to research published last year.

Under the proposed law, pet owners could use their HSA or FSA to pay up to $1,000 for veterinary care or pet insurance. No spending cap would apply to service animals owned by veterans or people with disabilities.

"Pets are more than just animals — they're beloved members of families who bring joy, comfort, and even health benefits into our lives," Ross said in a statement issued jointly by the congressmembers yesterday. "However, rising veterinary costs often make it challenging for families and veterans to provide care for their pets or service animals."

The cost of veterinary services in urban areas jumped by 7.6% between August 2023 and August 2024, according to the latest data from the U.S. Bureau of Labor Statistics.

Many veterinary companies maintain that costs are being pushed up by a tight labor market, supply chain bottlenecks in the wake of the pandemic and higher demand for more sophisticated treatment. Competition regulators, meanwhile, are scrutinizing whether the rising power of big corporations in the profession — many backed by private equity firms — is also resulting in higher prices.

The joint statement from the U.S. lawmakers indicated enthusiastic endorsement from the American Veterinary Medical Association. Its president, Dr. Sandra Faeh, is quoted as saying that the proposed law "helps maintain animal and human health, promotes and emphasizes the health benefits of pet ownership and allows more people to become pet owners."

The statement also quoted an insurance industry executive, Brian Jorgensen, MetLife's head of pet insurance, as saying that the bill is "a critical step" toward promoting pet health while protecting owners' "financial wellness."