Obamacare's Medicine Cabinet Tax to Hit Millions on Jan. 1


Posted by Ryan Ellis, John Kartch on Thursday, December 23rd, 2010, 3:18 PM PERMALINK

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Due to an Obamacare provision taking effect on January 1, Americans will no longer be able to use their Flexible Spending Account (FSA) and Health Savings Account (HSA) pre-tax dollars to purchase non-prescription, over-the-counter medicines (with the exception of insulin).

Under current rules, health consumers may use these pre-tax accounts to purchase non-prescription, over-the-counter medicines.  But on New Years Day 2011, the 40 million Americans who use FSAs and HSAs will no longer be able to use their accounts to buy simple, everyday medicines like the following:

--Aspirin
--Antacids
--Laxatives
--Menstrual pain relievers
--Antihistamines
--Stimulants
--Anti-Ulcer Medicines
--Athlete’s Foot Cream
--Cough Medicine
--Motion Sickness Medicine
--Anti-Diarrheal Medicine
--Decongestants
--Hemorrhoid Cream
--Anti-Flatulence Medicine

The provision is just one of Obamacare’s two dozen new or higher taxes totaling nearly $600 billion over this decade. 

The tax increase will affect any family that has an HSA or FSA.  Therefore, it is clear violation of President Obama’s oft-repeated promise not to raise “any form of taxes” on any family making less than $250,000 per year.

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