Something which was slipped into the Healthcare Reform Act was a change effecting the spending of FSA (Flexible Spending Account) money.
In a nutshell, starting in Jan/2011, you will not be able to us FSA money to pay for OTC medications unless you get a prescription from your Doctor. So no more FSA reimbursement for Advil, cough syrup, NyQil, Band-Aids…
It’s not too late to use as much money as you have left in your 2010 balance to buy these items though. So if your kids use DimeTapp (or whatever) often, go buy 10 bottles out of this year’s money because it won’t be reimbursable next year.
They have also decreased the maximum amount which you can contribute to $2,500 per year per family.
Please share widely!
Those are for folks with W2 income – not the self employed.
I’m not sure of the number, but I would guess that the vast majority of workers in the US still get W2s and have access to FSAs. Hopefully people use them even if they only spend $1,000/year on medications.
high deductible health insurance plan to qualify. Only those with catastrophic coverage qualify.
Sorry John. I was thinking HSAs.
Just as fewer and fewer workers get health insurance; the FSA is an elite product and not available to the vast majority even of those with health insurance from employers. Just so you know, I fear you are out of touch with the lives of most workers, just as the self-employed professional is not a work situation you really appear to understand. Also, there is a difference between Morbid Wealth (make an analogy to being morbidly obese) and being well off – I have nothing against the well off, but the morbidly wealthy who abuse their good fortune, which is often NOT earned into abuses of power and driving others into abject poverty DOES offend me.
…but how many people need assistance purchasing OTC medication?
There are many OTC medications which are medically necessary. I had an FSA until I went part time. OTC medications were a significant part of what I spent. It would have been a big problem for me if I had budgeted my FSA assuming that I could use if for a medication like Prilosec.
I’m simply telling people who do have FSAs that OTC will not be covered next year and if you want to purchase a pile of cough syrup, antihistamines… for your self and your family then do it with 2010 money.