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

Posted by Ryan Ellis on Monday, January 17th, 2011, 6:06 AM PERMALINK

Due to an Obamacare tax hike which took effect on January 1, Americans are no longer 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 the pre-Obamacare rules, health consumers could use these pre-tax accounts to purchase non-prescription, over-the-counter medicines.  But starting on New Years Day 2011, the 40 million Americans who use FSAs and HSAs (including 5.7 million HSAs with $7.7 billion in combined assets) were no longer be able to use their accounts to buy simple, everyday medicines like the following:

--Menstrual pain relievers
--Anti-Ulcer Medicines
--Athlete’s Foot Cream
--Cough Medicine
--Motion Sickness Medicine
--Anti-Diarrheal Medicine
--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 affects 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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