More Unnecessary Red Tape In Obamacare

On October 15th, Fox News posted an article about the changes coming to Flexible Healthcare Spending Accounts (FSA) in the new healthcare reform bill.  Currently FSAs have no limit on the amount of tax-free dollars put into them and can be used for pretty much any over-the-counter drug or medical procedure.  The new rules place a limit on the pre-tax contributions to $2,500, starting Jan. 1, 2013.   That sounds like a lot, but if you have children who need braces or you are contemplating laser eye surgery, this will impact you. 

According to the Detroit News on October 18:

“…In the past, employees could use their flex accounts to pay for both prescription and non-prescription drugs and medical supplies.  Starting January 1, they can no longer use them to pay for drugs and medicines without a doctor’s prescription.

“Drugs and medicines are defined as anything you inject or apply topically to treat a specific medical condition.  They include allergy and cold medications, pain relievers, laxatives, acne treatments and many other drugs.  An exception is made for insulin and diabetes supplies, which can be reimbursed without a doctor’s prescription.

“However, after this year you will still be able to use your flex account to pay for medical devices and supplies without a prescription.  These items include bandages, reading glasses, condoms, othotics, blood pressure monitors and contact lens solutions.  (For a list, see www.wageworks.com/otcfact.)  The list of elibible items you can buy with an FSA debit card at a drugstor will shrink from about 42,000 items to about 30,000 items, Dietel (Jody Dietel, Chief Compliance Officer for WageWorks) says.”

What this means in simple terms is that if you need hayfever medicine and want your insurance to cover it, you have to schedule an appointment with your doctor to get a prescription.  This will end up increasing medical costs–not lowering them.  I really think the only reason this provision is included in the healthcare bill is that the Democrats want to eliminate any law that allows American taxpayers to keep their money.