Major Change to FSA/HSA Accounts Starting in 2011

[ambgoph]

Was just informed by my employer that starting next year our HSA/FSA account(s) can no longer be used for over the counter meds., unless you have a prescription. This is due to the health care reform bill.

Note to self to stock up on over the counter meds by the end of year using my HSA.

 

[aclov]

Was just informed by my employer that starting next year our HSA/FSA account(s) can no longer be used for over the counter meds., unless you have a prescription. This is due to the health care reform bill.

Note to self to stock up on over the counter meds by the end of year using my HSA.

Wow, I'll have to ask our broker as I'm in HR and that is going to be a big issue for us!

 

[ekatiel]

GGGGGGRRRRRRRRR. . . just another reason to love the health care bill . . . Mental note to get an RX for DS's Zyrtec next time we visit the allergist.--Katie

 

[ambgoph]

Wow, I'll have to ask our broker as I'm in HR and that is going to be a big issue for us!

Yep - our broker sent an e-mail with all of the implications outlined in a 3 page document to our HR person - she forwarded it to us (she was quite surprised).

 

[andrews_dad]

Was just informed by my employer that starting next year our HSA/FSA account(s) can no longer be used for over the counter meds., unless you have a prescription. This is due to the health care reform bill.

Note to self to stock up on over the counter meds by the end of year using my HSA.

You have GOT to be kidding me. This health care bill is going to be a major hit to my wallet and my lifestyle. Thanks, Obama.

 

[peanut12392]

I have heard that this bill will eventually (several years in the future) completely eliminate these FSA accounts, does anybody know for sure?

 

[Hoodie]

I have heard that this bill will eventually (several years in the future) completely eliminate these FSA accounts, does anybody know for sure?

It does cap them at 2500. Many employers had a higher limit.

btw - the changes to FSA are estimated to cost the average taxpayer $600+

 

[msmayor]

No big deal to me. I use my FSA primarily for copays, prescriptions and contacts/eyeglasses...what it was really designed for.

The only time I'll submit for OTC items is if there happens to be funds left at the end of the year, which is rare and normally less than $25.

 

[Ashlander]

This is so irritating! Just one more way to increase taxable income...

 

[bettymae1121]

No big deal to me. I use my FSA primarily for copays, prescriptions and contacts/eyeglasses...what it was really designed for.

The only time I'll submit for OTC items is if there happens to be funds left at the end of the year, which is rare and normally less than $25.

Ditto. I mean, how much does one spend on OTC meds anyway? I buy a box of Claritin and a mega bottle of Advil a year, that's basicly it for OTC. Even if I spent $100 a year on OTC (and I think thats a lot), it would only save me about $13 in taxes, as my effective Federal tax rate is about 13%. Sure, I'd rather have the $13 but it's not exactly a budget-buster.

 

[jodifla]

No big deal to me. I use my FSA primarily for copays, prescriptions and contacts/eyeglasses...what it was really designed for.

The only time I'll submit for OTC items is if there happens to be funds left at the end of the year, which is rare and normally less than $25.

Yes, this is how we have our set up as well.

The OTC thing was convenient add-on type of thing, but not why we take part in the Health Savings Plan.

 

[sahm1000]

Wow, that's just fantastic. I do primarily use our FSA for prescription drugs and doctor's visits too. But I also use it to pay for our allergy medicine that we are able to get OTC. I use zyrtec, my DD6 also uses children's zyrtec (much more expensive for some reason in the chewable form even though it's the same drug amount as mine) and my youngest DD 18 months takes a chewable claritin. So monthly we do spend quite a bit on allergy meds, especially since we end up taking them around 8 months out of the year here in Texas. I imagine that people will now be asking their doctor's for prescription versions now instead of taking the OTC stuff if they cannot use their FSA.

 

[aclov]

My broker said he was aware of it and planning on bringing some details next week for a meeting. He said there will also be changes to the limits to how much you can contribute. Ugh!

 

[Tnkrbelle565]

Terrific. I have a FSA because we have a deductible. But if I don't use the deductible...I need to stock up on OTC to use up the funds. Guess I won't be doing this in 2011. Thanks Obamacare

 

[a1tinkfans]

You have GOT to be kidding me. This health care bill is going to be a major hit to my wallet and my lifestyle. Thanks, Obama.

 

[a1tinkfans]

Ditto. I mean, how much does one spend on OTC meds anyway? I buy a box of Claritin and a mega bottle of Advil a year, that's basicly it for OTC. Even if I spent $100 a year on OTC (and I think thats a lot), it would only save me about $13 in taxes, as my effective Federal tax rate is about 13%. Sure, I'd rather have the $13 but it's not exactly a budget-buster.

Many people buy LOTs of OTC rather than scripts and it Will Be ab BIG hit as many other "reductions" of coverage are down the pike.....

 

[dex08]

Here's the article about some of the changes as posted on CNN Money site

http://money.cnn.com/2010/03/26/news/economy/health_care_changes_to_employer_benefits/

 

[hjohnson6]

We have a HSA since we have a high deductible plan. I am worried that they are going to declare our plan as "unqualified" under the new bill.

BTW they consider Eyeglasses and contacts as a "Medical Device" so now the public is going to have to pay a 3.2% sales tax on them. I am pissed about this since glasses are costly and I have to buy them every year.

 

[Tnkrbelle565]

We have a HSA since we have a high deductible plan. I am worried that they are going to declare our plan as "unqualified" under the new bill.

BTW they consider Eyeglasses and contacts as a "Medical Device" so now the public is going to have to pay a 3.2% sales tax on them. I am pissed about this since glasses are costly and I have to buy them every year.

Better stock up on contacts too Hope my prescription doesn't change

 

[gabriellyn]