Skip to comments.New Rules Coming for Payments Out of Health Savings Accounts
Posted on 10/28/2010 10:56:57 PM PDT by T.L.Sink
Under the new health care law, consumers using workplace pre-tax health savings accounts will soon need a doctor's note to pay for Tylenol and an estimated 15,000 other over-the-counter drugs. Starting Jan. 1, employees who use flexible spending accounts, health saving accounts, or health reimbursement arrangements to pay for common medications such as pain relievers, cold medicines, antacids and allergy medications will need prescriptions. The new rules will prohibit the use of such debit cards becsuse the IRS says there's no way to prove the drugs are prescribed. The IRS says any money removed from HSA accounts to pay for medical expenses without a prescription will be included as TAXABLE INCOME and subject to an additional tax of 20 percent!
(Excerpt) Read more at foxnews.com ...
You must be Amish. (I am!)
As the Carpenter’s use to sing...
We’ve only just begun....
I have no problem with having someone who claims a tax-exempt transaction being asked to prove it; otherwise you’ll have 20 year-olds claiming expenses for prune juice and denture cleaning stuff, or sixty year-olds claiming baby aspirin.
I have issues with the larger picture, but this may be just common sense; we can be asked to document anything we put on our tax returns, and this is no different.
Just as long as you can provide that, I'm good.
Perhaps you’d like your HSA and IRA account to be distributed by the Government as well. They know best of course! Just turn everything over. NOT forcibly just by penalty of law!
The new cap of $2,500, the new hastles that it takes to buy a freaking bottle of Tylenol, don’t you get it? It’s all about destroying every part of the health care system that is privatized and that is controlled by the consumer instead of by the government.
I plan to call my local congress critter each and every time to see if the will help with the co-pay for the doctor visit and my Tylenol prescription.
So you have to go to the Doctor so I presume you would pay for that visit just to say you need aspirin for your headache—so you can use the oney that you sacved in your health savings acount—is that the gist of it. Do you think you will have to get a note if you neeed tampax I presume that would be a monthly doctors appointment.
You’ll need a note for over-the-counter laxatives, asprin, tylenol, advil, Tums, zantac, etc. The doctor’s offices will just have pre-printed and signed prescriptions stacked up in the waiting room. Just go to the correct stack and grab a few. Doctor’s are not going to waste time seeing people because they need a note for over the counter medications. That’s how this outrageously stupid and unconstitutional “law” is going force doctor’s and their patients to behave.
This is ‘low hanging fruit’ for the next Congress to correct - I hope they don’t mess this one up ... They need a few wins under their belt.
You know, sooner or later, I am going to start getting upset reading about how every day the government climbs farther and farther up my ass in an attempt to control everything I do.
Land of the free, home of the brave...
They would love it. They thrive on you needing them. I quit calling and e-mailing. It is better to use the energy to oust them.
This is BUMMER care, all right!
In the case of an item like Tylenol, what other use could it be put to? A sales receipt, or a list provided by a pharmacy that keeps these records for you, by any common sense would be sufficient if there were an audit,
From the perspective of someone who works in a doctor’s office, we do not need yet more phone calls from patients with more requests. As it is, we’re inundated with requests for refills, work/school notes, please have the doctor fill out such and such form, and on and on and on. Not the mention the repeat calls an hour later from people wanting to know why the doctor hasn’t responded to their requests yet.
This will burden busy clinics even more than we already are.
I'm torn between praying for things to get better and praying for things to deteriorate even more quickly - things will and must get much worse in preparation for His return. We can't stop it, but we may be able to drag it out...
I believe IRAs will be used against Americans at their retirement, to reduce their SS benefits. I don’t agree with it, but if the gov’t thinks it will reduce the SS burden they’ll probably do it. Wouldn’t be the first time we rewarded the grasshoppers who played while the ants stored food for the winter; it happens every day.
As I said, I have a problem with the larger picture (particularly federal income tax itself), but as long as we’re already expected to verify what we put on our tax forms I don’t see why this would be treated any differently.
See # 23
If you want to write off the cost of that Tampax, why not? See # 23
I believe the gubmint wants to prove it was FOR YOU.
The left doesn’t like Health Savings Accounts. The concept reeks of “freedom” and they really hate freedom.
My cardiologist verbally prescribed 81 mg aspirin and fish oil, both of which are paid for through my HSA using MY money, not your money or at any real expense to the gubmint or tax payers. I would imagine that most others who take it have also had it prescribed, at least verbally, by their doctors. Why anyone would have ANY objection to ME paying for MY medications with MY money is well beyond they bounds of rational thought. The IRS requiring a formal prescription (that goes away as soon as it is filled) is an unnecessary complication of one portion of our screwed up health care system that actually works to save taxpayer dollars. If you want to eliminate a boondoggle, try looking at Medicare Part D.
Give Obama another two years or (God help us!)another term and -— “we ain’t seen nothin’ yet!”
I can fully appreciate that. But ObamaCare is socialism on steroids! Take a glance at the disastrous medical systems in some European countries and that’s our future!
Agreed. Let’s hope the turnout is good on Nov. 2nd!
Dr. David Janda
Krauthammer on obamacare
Oh this is going to make people mad and it is stupid. They will now have to pay for an office visit to buy tylenol with pre-tax dollars.
I suppose it would be possible to abuse the system, but that would almost certainly be marked by purchase of quantities well beyond what could be consumed by the taxpayer or his family.
I can only imagine that is what they are trying to prevent; I’m not defending the practice so much as explaining it.
You already have to verify. If you pay with the card then they can see what you bought. If it is not obviously medical related then they ask you for an explanation. In some cases you can not buy it with the card unless it is medical related.
If you use the "Cash" option, which is not a option with most accounts, you need to present a receipt for the items you bought with cash.
In many cases you can not even access the money directly, you have to submit your receipt and they send you a check.
So the paperwork and verification that you want is already in place.
This is just another layer on top of that.
The bureaucracy is expanding to meet the needs of the expanding bureaucracy.
And supporting it.
And approving of it.
Because after all people need to be controlled. What are they doing taking things without a doctors recommendation anyway? How dare they! We must punish the reprobates who dare to buy Tylenol Cold rather then going to their assigned health care provider and having their illness recorded for the government to examine.
After all, if we don't have a record of every illness this person has ever had how will we know when to cut them off?
I explained the process of verifying an item on a tax form; that is all. I don’t believe in federal income taxes (along with ANY deductions/adjustments), and I certainly don’t believe in ObamaCare (in which the IRS and your healthcare are basically 2 heads of the same hydra).
If you claim a deduction for children on your tax form, the government reserves the right to have you verify the authenticity of that; they are simply appling the same logic to medical expenses. I don’t see how my explanation can be construed as defending, supporting, or approving it.
Because you are.
Perhaps because you don't understand what you are saying. I think I already explained that the verification of authenticity procedures were already in place.
This new rule is the equivalent of saying that you may not take a child deduction unless your child is enrolled in public school or in a government approved daycare.
Would you approve of that?
“Would you approve of that?”
No, but you are incorrect about the “public school” bit. You are required to provide the social security numbers of the children you are claiming; this is how the government confirms the validity of (and prevents duplication of) the deduction. As an American I understand your disagreement with the policy (and support that disagreement); as somebody familiar with federal income taxes I understand the government’s concern about being misled by a scenario in which every OTC medicine for an extended family ends up on one person’s medical deduction.
“The left doesnt like Health Savings Accounts. The concept reeks of freedom and they really hate freedom.”
The left doesn’t like anything that someone may have that someone else may not; that is why the most industrious despise them and the most unproductive worship them.
No I am not. That is exactly what they are doing.
If you choose freely to buy something medical without your doctor's permission then you are punished just as if you choose to send your children to something other then a public school you are punished.
understand the governments concern about being misled by a scenario in which every OTC medicine for an extended family ends up on one persons medical deduction.
And I don't. The money is being spent on medical items just as it is meant. I don't understand why that would be a problem for you or for anyone.
“The money is being spent on medical items just as it is meant. I don’t understand why that would be a problem for you or for anyone.”
That says it all; I should be able to deduct the medical expenses of anyone I know, and the government should just accept that. A lot of these pills are used for methamphetamine, too...