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:
- Anti-ulcer medicines
- Cough syrup
- Motion sickness medicine
- Menstrual pain relievers
- 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]