Rewarding, Not Punishing, Conscientious Health Care Practices

It is best to give families control over their health care decisions and health care coverage.  Consumers should be empowered with the ability to choose health care services outside of the constraints imposed by insurance companies, employers, and the government.  When paired with a high-deductible health plan, health savings accounts (HSAs) and flexible spending accounts (FSAs) allow people to save for future qualified medical and retiree health expenses tax-free.  Families can make tax-free contributions to their HSA for out-of-pocket medical expenses, including health insurance deductibles and co-payments. 

Despite the promises that those who like their health care will not see any changes, under the recently enacted health care bill over-the-counter (OTC) drugs are no longer eligible for reimbursement using pre-tax dollars in FSAs or HSAs.

Items like baby aspirin, cough syrup, bandages, cold and chest relief, antibiotic ointment, pain relievers, cough drops, sinus and allergy medications, and contact lens solution are no longer eligible for coverage under an FSA or HSA unless prescribed by a doctor.  Families that conscientiously plan to meet their medical needs by devoting a portion of their paychecks to their FSA or HSA should be able to continue to utilize these useful tools without hindrance by the federal government.

It is clear that this was only included in the health care legislation in order to claim another revenue source to fund the bill.  The Joint Committee on Taxation (JCT) estimates that this will result in an additional $5 billion in taxes.

Therefore, Congressman Lungren has co-sponsored the Family and Retirement Health Investment Act which would again ensure that HSAs allow reimbursements for prescription and OTC drugs. Health care reform must be consumer and patient driven, not government driven.

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