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Friday, September 3, 2010
6:00 AM EDT
Ryan Ellis

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

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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