Under ObamaCare, over-the-counter (OTC) drugs cannot be reimbursed tax-free from Health Savings Accounts (HSAs) or Flexible Spending Accounts (FSAs) without a prescription beginning January 1, 2011.
Special Interest Group for IIAS Standards (SIGIS) released this list of OTC medications that will require a prescription for a tax-free withdrawal from an HSA or an FSA under ObamaCare. (SIGIS is an industry group for health care debit card transactions and merchants.) According to SIGIS, more than 15,000 OTC health care items will need a prescription. Below is a partial list of the OTC items:
Allergy and Sinus medicine
Anti-Itch and Insect Bite
Baby Rash Ointments/Creams
Cold Sore Remedies
Cough, Cold, and Flu
As of May 2010, approximately 10 million people were covered under HSA plans for their family’s health care needs. The Joint Committee on Taxation estimates this provision of ObamaCare will cost families $5 billion.
For previous ObamaCare Flatlines, click here.