More Rule Changes Destined to Kill Health Savings Account
By now, it should be clear the new health reform laws are not going to favor Health Savings Accounts. ( HSA’s)
The popular plans enable consumers to control how their deductible dollars are spent. Under the new rules, consumers will not be able to use HSA dollars to purchase certain over-the- counter (OTC) drugs and medicines. The IRS currently allows OTC drugs and medicines to be purchased using HSA dollars. However, for contributions/withdrawals beginning January 1, 2011, HSA funds can no longer be used to purchase OTC drugs and medicines (examples noted below), unless you have a Note of Medical Necessity (NMN) or a prescription from your doctor.
Allergy & Sinus
Insect Bite Products
Baby Rash Ointment
Cold Sore Remedies
Cough, Cold, Flu Products
Sleep Aids / Sedatives
Some consumers thought HSA’s didn’t go far enough by not allowing certain holistic medicines and nutritional supplements.