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.
Acid Controllers
Allergy & Sinus
Anti-Diarrhea
Anti-Gas
Anti-Itch
Insect Bite Products
Baby Rash Ointment
Cold Sore Remedies
Cough, Cold, Flu Products
Digestive Aids
Feminine Itch/Anti-Fungal
Hemorrhoid Remedies
Laxatives
Motion Sickness
Pain Relief
Sleep Aids / Sedatives

Some consumers thought HSA’s didn’t go far enough by not allowing certain holistic medicines and nutritional supplements.

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