Health care HSA changes result in higher taxes for all

Radio Vice Online ^ | March 25,2010 | Steve McGough

[Steve495]

HSAs - before ObamaCare – allowed individuals to put aside money to pay for qualified medical expenses – including over-the-counter (OTC) medications – on a tax free basis. Frequently, companies match or at least contribute to an employee’s HSA. (Unlike FSAs, you are able to keep the money year to year and even invest the money!)

This benefit has changed.

[Steve495]

Thanks to all the FreeRepublic readers! You can now follow Jim Vicevich (@jimvicevich) and Steve McGough (@stevemcgoughRVO) on Twitter.

[Cricket24]

We have a HSA and to be honest I never knew I could pay for things like that with funds from the HSA. I just paid for them althought my husband and I are not pill takers. We usually just suffer until we feel better! Luckily we don’t take any prescription except for the occasional antibiotic. I had actually thought they might do away with the HSA’s altogether.

[thescourged1]

I love my HSA and use it often. I have a decision to make though: Given that Obamacare is unlikely to be killed, and I can only really afford one or the other, stick with my HSA and increase it's allotment for the year or dump my insurance......

[I still care]

We have two members of my family using them. They are great.

[Steve495]

Oh yeah. You could save significant money on OTC medications, especially if you have kids that go through Children’s Tylenol and such.

You can also use HSA dollars for many other medical expenses even bandages and hearing aid batteries.

You had to plan in advance a little, ensuring you break out the qualified expenses from your other shopping items and pay for them with your HSA debit card.

Take a look at your CVS, Target and maybe even Walmart receipts. Some even tell you what items qualify and it gives you a total so you can pull that money directly from the account.

[Steve495]

List of (what used to be) qualified medical expenses directly from the IRS...

http://www.irs.gov/pub/irs-pdf/p502.pdf

[taildragger]

Here is something my tax gurus tell me the IRS hated. (note not advice)

With a "Letter of Need" some MD's,Osteopaths, even Psychiatrist using natural products going the natural route could give you this letter and your FSA's HSA's dollars would be valid for these expenses.

Kiss this little niche good-bye...

[thescourged1]

I've used my HSA for everything from co-pays, to OTC meds, medical equipment (glucose meter, blood-pressure meter, test strips), 'patient-responsiblity' portions of med bills, eyeglasses and so forth.
And the best part is, is that you get some discounts on some of these things because you're paying in cash.

[Steve495]

And you realize the real plan is to get rid of HSAs and FSAs right?

[thescourged1]

Good for them. :)

One other thing I didn't mention: I enjoy being in control of my expenses with my own saved pre-tax money. And of course, being responsible for our health needs and not having to put up with multiple financially-interested parties is a satisfying freedom of it's own.

[thescourged1]

Of course, along with anything else that could possibly be used to determine your own destiny.

I can't even say aloud what I truly think, without risk of the banhammer.

[I am Richard Brandon]

The more you dig into this bill, the more you realize that it doesn’t have much to do with health. It’s all about (a) control, and (b) spreading the wealth. Which leads me to believe that it is just a path to socialism.

[thescourged1]

Pretty much a dead-giveaway when they 'forget' to include the children in the bill. Just a scam and a set-up.

[ncfool]

We need to Impeach this socialist. what happened to the America we all grew up with?