Well there’s one of our problems right there. People expect tax difference on OTC drugs. Come on guys, you got heartburn buy some Tums, need Sudafed pay for it and shut up. What a bunch of whiners the government has made us. An I don’t whant to hear no flames about poor old granny on Social Security. She probably can’t afford the HSA contributions anyway.
By the way - what is the cost of processing the paperwork, before or after Obozocare?
Although I agree with your view against the tax break for buying OTC with HSA. The reason I've bought OTC with my HSA, is in order to use up the deductible in my HDHP. Now my HDHP deductible is going noticably up (thanks DC gangsters) and I cannot use OTC to help get past the deductible. From the deductible perspective, the saving rate, combined with tax savings, approaches a theorical max of 100%...