December 26, 2009
— Gabriel Malor Since 2003, consumers could use pre-tax dollars in flexible spending accounts and health savings accounts to buy over-the-counter drugs. And we're not talking about a meaningless few. In fact, I bet most of what's in your medicine cabinet right now is on the list (PDF). The OTC rule translated to hundreds of dollars in savings each year for consumers with an FSA or HSA.
I have a small FSA through work and because I never go to the doctor, I use that money almost entirely for paying for things like Claritin, Tylenol, Neosporin, bandages, and Tylenol PM. If ObamaCare passes, no longer.
But Section 9004 of the [] Senate bill and Section 531 of the House bill that passed in November changes the tax code so that “distribution for medicine” from HSAs and FSAs are “qualified only if for prescribed drug or insulin.” Yes, the bills are merciful enough to allow diabetics to purchase insulin under these tax plans, but if you or your family members need Pedialyte, prenatal vitamins or numerous other over the counter health items, you will see a tax hike that could be huge.Since HSAs and FSA contributions are exempt from both income taxes and 15.3 percent payroll tax for Social Security and Medicare, and since these together can reach more than 40 percent of an employee’s salary, the effective tax increase on these medicines could be more than 40 percent.
And this tax change will almost certainly cost the health care system billions more dollars in unnecessary spending both to the government and private insurance plans. The Joint Committee on Taxation estimates that the tax hike will bring in $5 billion in revenues over ten years – itself a drop in the bucket when compared to the bill’s new trillion-dollar entitlement – but that estimate doesn’t take into account behavioral changes as a direct result of this provision.
OTC drugs are much cheaper those available for prescription, but they could now be more expensive to individual consumers given that prescription drugs would still be eligible for favored treatment in the tax plans, and that insurance companies would be mandated to cover many of them. Consequently, any time a consumer has the slightest headache, the financial incentive would often be to see a doctor and get a prescription rather than go to the store and get medicine off the shelf.
In other words, Obama is bending the cost curve...up.
Posted by: Gabriel Malor at
08:10 AM
| Comments (104)
Post contains 411 words, total size 3 kb.
Posted by: Steve L. at December 26, 2009 08:18 AM (mIIVr)
Posted by: IllTemperedCur at December 26, 2009 08:21 AM (L8xnn)
Posted by: eddiebear at December 26, 2009 08:22 AM (t6jix)
Posted by: Snookered at December 26, 2009 08:25 AM (7Vg6Y)
Posted by: Typical Liberal at December 26, 2009 08:27 AM (mzwMH)
Posted by: Snookered at December 26, 2009 12:25 PM (7Vg6Y)
Based on Obama's tax and regulation plans I expect we will see a major expansion of the grey market.Welcome to the USSA. The government pretends to pay for our healthcare, and we pretend that we get any.
Actually, a better idea might be Mexican health insurance - when the commissar tells you to take the pain pills, this sort of plan would pay for your actual medical care south of the border.
Posted by: 18-1 at December 26, 2009 08:28 AM (bgcml)
If you like your current health care plan, you can keep it
Posted by: BHO at December 26, 2009 12:28 PM (/5Axw)
...until my bill becomes law.
Posted by: 18-1 at December 26, 2009 08:29 AM (bgcml)
Posted by: St. Agnostica at December 26, 2009 08:32 AM (gbCNS)
Posted by: Anachronda at December 26, 2009 08:33 AM (LD+ZJ)
The story about taking Tylenol off the shelves was out months ago. But it was dismissed along with "death panels" as misinformation and as a scare tactic.
Posted by: Posted by a shill for Big Insurance at December 26, 2009 08:33 AM (z37MR)
Posted by: CoolCzech at December 26, 2009 08:34 AM (QECjC)
what makes you think the consequences are unintended?
Posted by: redc1c4 at December 26, 2009 08:34 AM (d1FhN)
Posted by: eman at December 26, 2009 08:34 AM (7dmFm)
Democrat philosophy #1: We can save money by taxing everyone to death - especially those evil greedy rich bastards at the top. (sure - we wonder why everything falls apart - but no matter, we can continue to tax shit until it dies)
Posted by: ethos at December 26, 2009 08:34 AM (0fzsA)
Dead people don't buy medication.
As an ancillary perk- all those soon to be funemployed workers from OTC manufacturers will be able to get insurance from the Gubbermint while they look for new, green jobs.
Posted by: Damiano at December 26, 2009 08:35 AM (2tsdE)
Medicinal purposes y'know.
Posted by: IllTemperedCur at December 26, 2009 12:21 PM (L8xnn)
No, but I can sell you some great medicinal weed man.
Posted by: Obama's drug dealer at December 26, 2009 08:36 AM (bgcml)
Posted by: Ministry of Obfuscation at December 26, 2009 08:38 AM (d1FhN)
Posted by: eman at December 26, 2009 08:38 AM (7dmFm)
Democrat philosophy #2: If there's a way we (the all-knowing democrat) can kill a free market solution that works and replace it with an unsustainable over-priced on-the-dole government option, let's do it! For the common good.
Posted by: ethos at December 26, 2009 08:38 AM (0fzsA)
Remember, if you're dead you can't vote R and you can't do anything about handing out reparations to all the marxist shit-holes (foreign and domestic).
Posted by: Dang Straights at December 26, 2009 08:41 AM (YbMPV)
Democrat philosophy #3: Blame everyone else. Whine about how everyone is a hypocrite. "whaaaaaaa - the other party spent money"-- so that gives the democrat party endless use of the public credit card. It's for the common good.
Posted by: ethos at December 26, 2009 08:42 AM (0fzsA)
But thanks to one of my loser senators (Harkin), I'll be able to have crap like homeopathy covered.
I better stop now before I start spitting blood. I'm sure that won't be covered under ObamaCare.
Posted by: bigpinkfluffybunny at December 26, 2009 08:42 AM (KWhJd)
Posted by: dfbaskwill at December 26, 2009 08:45 AM (ndlFj)
OTC drugs are much cheaper than those available for prescription
More proof this was never about cost and all about control.
Can't have the proles diagnosis and treating themselves now can we?
Posted by: ThomasD at December 26, 2009 08:45 AM (UK5R1)
Posted by: Harry Reic at December 26, 2009 08:47 AM (V/EYZ)
The only benefit I've used in the last 10 years was dental. This year I'm going to get gloriously ill and have every procedure done that I can while I'm still covered - angioplasty, bonespurs, knee scoped, eyes/ears/nose/throat/colon EVERYTHING. That way I can go into the coming apocalypse healthy.
Posted by: Dang Straights at December 26, 2009 08:47 AM (YbMPV)
Not wanting your children to die in poverty is racist!
Posted by: TexasJew at December 26, 2009 08:47 AM (3iWJp)
Posted by: eman at December 26, 2009 08:47 AM (7dmFm)
You selfish bastard. We will now be able to treat a dozen potential Democrats illegals with the money our plan saves on your stupid Tylenol and Neosporin.
Posted by: Harry Reid at December 26, 2009 08:49 AM (554T5)
1 I'm shocked, shocked to find incompetence and unintended consequences here.
I'm shocked, shocked that you think this is unintended
Posted by: Truman North at December 26, 2009 08:50 AM (FjC5u)
Posted by: nickless at December 26, 2009 08:52 AM (MMC8r)
13 Obama tax policy summarized in two sentences:
How much you got sucker? Hand it over.
My version:
Obama's new Tax Return On A Postcard:
1. Write down how much money you have.
2. Send it in.
Posted by: Truman North at December 26, 2009 08:54 AM (FjC5u)
Posted by: Bowling for Obama at December 26, 2009 08:54 AM (DIYmd)
Posted by: TexasJew at December 26, 2009 08:56 AM (3iWJp)
How do you think Obama "dealt" with it? I bet he put on his superman underwear and .......
I mean, c'mon........
Posted by: prettypinkfluffypanties at December 26, 2009 08:57 AM (o7YFY)
Posted by: Harry Reid at December 26, 2009 08:59 AM (Q7FMI)
How do you think Obama "dealt" with it?
First, he blamed the passengers for acting stupidly. Then he finished his waffles. Then he released a statement that basically said "Present".
Posted by: Dang Straights at December 26, 2009 08:59 AM (YbMPV)
Posted by: Jerry at December 26, 2009 09:01 AM (7Ahkq)
Posted by: Harry Reid at December 26, 2009 09:02 AM (ZOiOI)
Posted by: NJConservative at December 26, 2009 09:04 AM (/Ywwg)
Yet another tax levied on the 'have's'.
If you've got it, they plan on taxing it.
This Bill is well designed to return a majority of the wealth accumulated in Private hands back to the Gov't in under three generations. Watch the Death Tax and related taxes on wealth transfer. (Obviously, these guys are not good at Chess and/or Poker.)
Posted by: garrett at December 26, 2009 09:07 AM (7rV+V)
Once the American people find out exactly what is in our bill they will shower us with wonderment and joy. Where is my wonderment and joy proles?
Posted by: Harry Reic at December 26, 2009 12:47 PM (V/EYZ)
Right here at the end of my boot Harry.
Posted by: Blazer at December 26, 2009 09:13 AM (t72+4)
Of course, Obamacare is about controlling and restricting your access to healthcare. Liberals create scarcity so they can use the rationing to retain power and control people's behavior. Laws and policies created by liberals kill human life.
Posted by: ray at December 26, 2009 09:21 AM (9+P9E)
Posted by: Rodent Liberation Front at December 26, 2009 09:21 AM (dQdrY)
54
I wouldn't shower Reid with piss if he was on fire.
Gasoline, maybe.
Show me the man who can piss gasoline and I will show you a government agency attempting to restrict his water intake for the good of some worthless wildlife.
Posted by: ray at December 26, 2009 09:24 AM (9+P9E)
Redistribution might work eventually, but by then the pot will have shrunk, in part because rich people (you know, the ghouls who steal from the poor) will figure out how to deal with this much more effectively than the rest of the country.
Redistribution only works for those doing the redistributing...everyone else gets a huge cup of Assfuck.
Posted by: garrett at December 26, 2009 09:25 AM (7rV+V)
Posted by: libbyt at December 26, 2009 09:25 AM (5I0Yr)
Back in 2004, I had to take my daughter to a specialist for something. The specialist was located at a different military hospital than the one we usually went to.
The doctor gave me a prescription so I went to the pharmacy department and waited in a long line...only to be handed non-prescription medicine.
So there I am, in the middle of Walter Reed, surrounded by people missing limbs, using up your tax dollars and making somebody with real problems wait longer in line for absolutely no reason.
Coming soon to the rest of you!
Posted by: Mama AJ at December 26, 2009 09:27 AM (Be4xl)
I've had an HSA for years. It works very well -- and it is especially nice if you have a couple of "healthy" years in which you don't need to spend much money on medical things and can accumulate a balance in your account. Then you can keep building up a hefty balance and keep rolling it over from year to year to year (unlike an FSA where you have to use it that year or lose it).
With an HSA, you are insured in case anything catastrophic happens and you need "major medical protection" above your deductible.
But that is too reasonable a plan for Democrats, because it is "everyone pays for himself"...and doesn't REDISTRIBUTE THE WEALTH.
Posted by: Juliet16 at December 26, 2009 09:28 AM (EPMEV)
When I had an FSA, I used it to pay for braces. It was a nice break. And therefore, obviously evil.
Posted by: Mama AJ at December 26, 2009 09:34 AM (Be4xl)
Posted by: hutch1200 at December 26, 2009 09:37 AM (pncJj)
This is the kind of shit where I want to be there to see the look on liberals' faces when they realize what they've done to this country by voting for Socialists. Holding a red & blue HOPE poster is a lot more fun than holding an FSA Guide while some beauracrat shakes her head at you and says NOPE.
Dirty, stupid hippies.
Posted by: Crusty at December 26, 2009 09:40 AM (qzgbP)
Posted by: Harry Reic at December 26, 2009 09:40 AM (V/EYZ)
Posted by: bigpinkfluffybunny at December 26, 2009 09:44 AM (KWhJd)
Posted by: nickless at December 26, 2009 09:45 AM (MMC8r)
Posted by: FPC at December 26, 2009 09:53 AM (qZb8X)
....right?
Posted by: lauraw at December 26, 2009 09:56 AM (DbybK)
You supported Segregation too didn't you?
Oh, yeh. It was before I was born, but that fact doesn't limit my evil-ish-ness.
Posted by: Mama AJ at December 26, 2009 09:57 AM (Be4xl)
Tell me again that obama said that if I liked my health insure plan it wouldn't change?
Posted by: Jack Burton at December 26, 2009 10:04 AM (YxJoH)
Posted by: GarandFan at December 26, 2009 10:04 AM (ZQBnQ)
Posted by: CDR M at December 26, 2009 10:08 AM (cvmTR)
Medicinal purposes y'know.
Only if your name is Dr. Leonard McCoy. But does Val-U-Rite import Romulan ale?
Also: is a wee bout o' shore leave covered under ObamaCare?
Posted by: I R A Darth Aggie at December 26, 2009 10:24 AM (BDH94)
When I apologized for my disease, I honestly meant it. Of course I can't help my lot in life, but this maniacal bill puts a major guilt trip on anyone who has the decency to oppose it and yet is still afflicted in whatever way. I'll be expecting Obummercare to cover antidepressants for types like me who get to suffer that guilt.
Fuck Obumass and the Hershey Highway he rode in on. Fuck that son of a liberal bitch. I am EVIL and hope he gets a long, painful. incurable cancer like my husband and f-i-l did.
This is depressing the hell out of me.
Posted by: St. Agnostica at December 26, 2009 10:37 AM (gbCNS)
I can at least take solace in not adding to the death rolls just yet. I have a son who needs a mother in this fucked-up world.
That ought to piss off the marxists, wanting to thin the herd like they do. I live in DEFIANCE unless the gas chambers for the "undesirables" crank up.
Posted by: St. Agnostica at December 26, 2009 11:19 AM (gbCNS)
Our hands were tied. Racists.
Posted by: Harry Reid at December 26, 2009 11:22 AM (BlBnA)
He doesn't care about the pot shrinking. He's said as much. He cares about fairness.
He understands economics and wealth creation. He just doesn't like it.
Posted by: tachyonshuggy at December 26, 2009 11:35 AM (YRjsF)
Posted by: Nancy Pelosi at December 26, 2009 11:42 AM (TQz4/)
Posted by: SarahW at December 26, 2009 12:06 PM (CSrvi)
The new Litmus Test for understanding what seems to be govt. insanity?
Does it fit the goals of Cloward-Pivens and Socialism? If so, IT'S BY DESIGN.
Posted by: Litmus at December 26, 2009 12:44 PM (d7Px0)
This is about a hell of a lot more than just taxes. As is, calculating the amount of money you need in an FSA is damn near impossible because you never know what types of surprises linger around the corner. Unlike HSA, FSA accounts do not rollover and any funds unused at the end of the calendar year are forfeited entirely. As is, I can always feel safe in saving because if I have a light year, I can drop by CVS the last week of December and stock up on OTC supplies.
This means fewer people contributing and those who do contribute will contribute less for fear of forfeiting OUR OWN FUCKING MONEY at the end of the year.
I hate that son-of-a-bitch.
He won't be happy until he has destroyed every fucking opportunity to save a dime.
If they really want to encourage Americans to invest in their own health care, eliminating bullshit restrictions such as those imposed on FSAs might go a long way towards that end.
Posted by: jmflynny at December 26, 2009 12:54 PM (s15cx)
jmflynny
Have you noticed that the WH now wants to confiscate the savings and investments of all hospitals, etc.? That money NEEDS to be redistributed to the ObamaCare plan.
Seriously.
Posted by: Litmus at December 26, 2009 01:04 PM (d7Px0)
Posted by: curious at December 26, 2009 01:14 PM (p302b)
89 Have you noticed that the WH now wants to confiscate the savings and investments of all hospitals, etc.? That money NEEDS to be redistributed to the ObamaCare plan.
I seriousy expect the WH to confiscate private bank accounts and investments of citizens, too - before any major election. I seriously do. I'm all optimistic like that. But hey, why not - we'll just be fucked some more. Can't fuck the 'thuglicans enough, Barry the motherfucker marxist must say.
Meanwhile, I've got some spaghetti to make. I didn't feel like stew for tonight.
Posted by: St. Agnostica at December 26, 2009 01:19 PM (gbCNS)
Nope, Litmus, I missed that one.
Damnit all!
Americans get all up in arms about flag burning but the Constitution is being incinerated before our eyes and, what?
*chirp chirp
Posted by: jmflynny at December 26, 2009 01:28 PM (s15cx)
Posted by: jmflynny at December 26, 2009 01:30 PM (s15cx)
Posted by: Flubber at December 26, 2009 01:41 PM (7+r4B)
This is scary. This is Venezuela.
Posted by: PJ at December 26, 2009 02:21 PM (Qpxxz)
Posted by: Lnkstern at December 26, 2009 02:38 PM (ahLfz)
I honestly don't even think the word "socialist" is on the minds of the marxists in the WH. I know the words are intermingled a lot, but this looks bigger and badder. Most of congress, sure, they may well have socialism in mind. But...
Consider me the voice of doom. I don't mean to frighten anyone with my pessimism. Just one voice. I would be glad to be proven wrong.
Posted by: St. Agnostica at December 26, 2009 02:43 PM (gbCNS)
Posted by: Ron at December 26, 2009 02:49 PM (R4gGg)
Twist the head off of the next Democrat you see on a flight.
May not stop them from voting - how many of them have been using that useless appendage anyway? - but it will make you and your fellow American Constitutionalists on-board feel better.
Posted by: Andrew Sullivan at December 26, 2009 03:00 PM (Iq/G6)
Democrats hate tax incentives or tax-advantaged savings accounts of any kind. They want to hand you a check or give you free medicine so you will be grateful to your rulers for it. It's just like housing vouchers - Democrats hate them because people can use them anywhere; they want all the poor people in government-built housing so they can cut the ribbon when it opens and then load everyone up on the bus easily on Election Day.
I'm waiting for the next Obama budget that proposes the elimination of the 401(k). You know it's coming.
They. Do. Not. Trust. You. With. Your. Own. Money.
Posted by: rockmom at December 26, 2009 04:42 PM (w/gVZ)
Posted by: War69DotCom at December 27, 2009 02:11 AM (rxX8B)
Soooooo. An individual mandate where the federal government requires you on pain of incarceration to buy medical insurance is ok to lefties -but- checking the identity of would-be voters before letting them vote is ... not ok to lefties?
Isn't the former rather more onerous than the latter? Isn't forcing people to spend thousands of dollars quite a bit more akin to a poll tax than requiring people to have a freely available zero-cost piece of identification?
I'm not really seeing how one is acceptable but the other is beyond the pale.
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Posted by: your winnings, sir at December 26, 2009 08:15 AM (PD1tk)