Get 'Em While They're Hot:<br> Medicine Cabinet Tax Hits in 120 Days


Posted by Ryan Ellis on Friday, September 3rd, 2010, 6:00 AM PERMALINK


Thanks to Obamacare, Americans will no longer be able to use health savings account (HSA), flexible spending account (FSA), or health reimbursement arrangement (HRA) pre-tax dollars to purchase non-prescription, over-the-counter medicines (except insulin) starting in January 2011.  These drugs will have to be purchased with after-tax dollars.

The ridiculous result will be a rush to buy over-the-counter products in the days after Christmas this year.

That means that the 30 million Americans with an FSA, HSA, or HRA will see a tax hike in January 2011.  They will no longer be able to use their pre-tax accounts to purchase such basic items as:

  • Aspirin
  • Antihistamines
  • Anti-ulcer medicines
  • Cough syrup
  • Motion sickness medicine
  • Ibuprofen
  • Antacids
  • Laxatives
  • Menstrual pain relievers
  • Decongestants
  • Hemorrhoid creams
  • Allergy relief
  • Athlete’s Foot cream

The Medicine Cabinet Tax is one of just seven tax hikes in Obamacare hitting families making less than $250,000 per year, a violation of Obama’s central campaign promise:

“I can make a firm pledge.  Under my plan, no family making less than $250,000 a year will see any form of tax increase.  Not your income tax, not your payroll tax, not your capital gains taxes, not any of your taxes.”  (Dover, NH)  [Transcript] [Video]

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