How Will the PHIT Act Impact Those Owning a Gym
“The PHIT Act makes it easier for Americans and their families to make exercise a priority through tax driven financial incentives. It makes all the sense in the world and reflects years of public policy efforts by a number of organizations, most notably IHRSA.” – Bryan O’Rourke, IHRSA Board Member and President of the Fitness Industry Technology Council.
What is the PHIT Act?
The Personal Health Investment Today (PHIT) Act suggests using tax incentives to promote health and prevent illness. In particular, it hopes to prevent illnesses associated with obesity. This act was voted through the U.S House of Representatives Committee on Ways and Means in mid-July and is now eligible for consideration to the entire House of Representatives.
It takes a commitment of both time and money to live an active, healthy lifestyle. The PHIT Act is attempting to remove a financial barrier in order for Americans to make fitness a part of their everyday lives.
It is not certain if the act will pass, but it has support from both Republicans and Democrats. Lawmakers agree this act will help to encourage people to stay healthy. One of the main reasons they are considering passing the act is because it could save money on medical expenses in the future if Americans live healthier lives now.
How Will It Work?
The PHIT Act will allow Americans to use Pre-Tax medical accounts to pay for fitness expenses. Currently, these accounts are for expenses incurred when you are sick, rather than for activities to prevent you from becoming sick. Using these accounts will help reimburse costs of physical activity, such as purchasing a gym membership, hiring a personal trainer, joining sports leagues, and more.
How Will It Affect Those Owning a Gym?
If you are managing or owning a gym, the PHIT Act is great news! If the act passes, it is a new source of member growth that needs to be managed. More people will start to join gyms, upgrade their membership status, make use of personal trainers, and start attending fitness classes in addition to other activities you offer at your gym.
The big question is: are you prepared for this shift? To all of those who own a gym, you need to start planning ahead. Begin to consider what you’ll need to change to maximize your member satisfaction and increase your member retention rates. Gym management software is able to help you with these challenges and more as the PHIT Act moves forward. By reducing delinquencies, improving collections, and creating a better member experience through an easy-to-use, online member portal, gym management software improves the quality of each individual fitness membership.
To learn more about gym management software and how it can help you improve your business processes as you continue to gain new members, download our Modern Guide to Running an Efficient and Profitable Gym!