Skip to comments.Obamacare Sticker Shock: Taxing Over 15,000 Medicines
Posted on 10/14/2010 6:42:43 AM PDT by kristinn
Nancy Pelosi warned us wed have to pass Obamacare to find out whats in it. And what were finding we dont like at all.
Higher insurance premiums are hitting families hard. Medicare Advantage has been decimated. Millions will be forced into government-run Medicaid where long lines and rationing await.
If we like our insurance -- too bad.
Beginning January 1, 2011, more than 15,000 over-the-counter (OTC) health care items will require a prescription (and that means a doctors visit) for tax-free reimbursement.
Under Obamacare, OTC drugs cannot be reimbursed tax-free from Health Savings Accounts (HSAs) or Flexible Spending Accounts (FSAs) without a government bureaucrat-required permission slip.
(Excerpt) Read more at humanevents.com ...
Do we have managers in the House who will draft the impeachment articles? Do we have the votes to move those articles to the Senate? Do we have the votes in the Senate to execute the impeachment order?
Obama reminds me of Liberty Valence.
Read the whole thing.
I’m stocking up on OTC medicines I regularly use now while I can still use my HSA to pay for it.
And yet, somewhere in the back of my mind I keep hearing this hopey-changey voice that says, “90 percent of Americans will see NO tax increases.” Must have been hallucinating.
Sorry. My linkage failed.
No ... no ... and no ...
My point exactly.
Maybe I'm living in a dreamworld---does anyone know how things will change? Will we be able to just do business as usual?
“Beginning January 1, 2011, more than 15,000 over-the-counter (OTC) health care items will require a prescription (and that means a doctors visit) for tax-free reimbursement.”
Good! My insurance never paid for over the counter meds for crying out loud! Enough of this cr*p!
What does insurance have to do with it? Currently you can use your HSA or FSA monies to purchase OTC drugs. If you want to continue purchasing OTC drugs with your HSA or FSA monies, you will need a prescription. Imagine having to get a prescription from your doctor for Ibuprofen....
HSA’s and FSA’s can also be used for dependent child care. Friends of mine use theirs for the expenses incurred by their disabled daughter: specialized day car, expensive wheel chair, etc. Right now the amount of money deferred into these accounts is set by employers. An employer can allow each employee to deduct, tax-free, $15,000 if he wanted to. Now obamacare sets the cap at $5000. This is devastating for families that rely on this tax-free money (that they earned!) to take care of dependent family members.
So include them in your medical deductions.
Perhaps you don’t know what HSA’s or FSA’s are. I have an FSA. My employer allows me to deduct up to $1000 into this account. This is money that I have earned, it is $1000 from my salary. This decreases my tax burden by $1000 each year. From this account, I purchase Tylenol, Benadryl, Neosproin, Pepto, etc., as well as pay for doc, er, x-ray, surgery, and prescription co-pays. Since I have no dental or eye coverage, I swipe my FSA card for these visits as well. I can use my FSA for eye glasses, contacts, sunglasses (prescription), cavity fillings, etc. Again this is my money from my salary, I’m just using it pre-tax.
not to mention the increased costs caused by all of those physicians having to take time out of their day to write scripts for Dulcolax and Advil
The FSA doesn’t reduce your tax burden by $1000, it reduces your taxable income by $1000, saving you 250-330, I imagine. But it is a good deal if you have known medical expenses.
Frankly I'd rather find ways to deal with the outcome of this abomination of this health care legislation for a bit and let those who voted for Obama and helped stack Congress with those who backed him to the hilt suffer the consequences of their foolishness. IMHO it would be worth the inconvenience, etc. just to make sure they feel the full impact of what they did.
I know it's not practical approach, but it should would be my action of choice if I had the power to make it happen.
Until those who make these things happen have the full weight of their bad decisions fall directly on them they will just continue their foolish ways.
I really don't understand your post. I have an FSA as well. I was simply pointing out that beginning in January, we can no longer purchase OTC drugs with our HSA or FSA monies unless we first get a prescription from a doctor.
Is that not your understanding?
You can itemize Ibuprofen and Nyquil?
Don’t mean to sound snide, but have you ever done your own taxes? Your medical deductions have to reach a certain threshold to be used. Your medical deductions must reach 7.5% of your AGI.
My deepest apologies. This comment was for Dem Guard and not for you. Sorry FRiend!
Overwhelming the system is the plan. Docs treating so many people for so many things will be very very busy.
When “O” supporters are taxed to the point of castration, maybe then they will see how ruinous this plan is.
USE THE AMMO the enemy gives you! Print the first article out for those seniors that are not online, email the list, print it, hand it out. Tell folks to go read for themselves. I do, then I tell them that my commie rep Steve Cohen gifted them with the $569 Billion tax hike, and the $8.15 Trillion Medicare gut.
How ObamaCare Guts Medicare
Health law’s heavy impact by Paul Guppy (Taxes)
Monthly premiums to rise for 7 of top 10 Medicare prescription plans in 2011
Social Security: No 2011 increase expected (COLA)
No Social Security COLA Expected For 2011 News Expected To Be Bad For Democrats
They forgot to add this to the Rest of the Story
Shall we wait to see how the media and the establishment Pubbies handle this one?
Harvard Pilgrim cancels Medicare Advantage plan
Seniors’ coverage options dwindle as Medicare Advantage programs close shop
Survey in New England Journal of Medicine 46% of US Doctors Will Quit Obamacare Passes http://www.associatedcontent.com/article/2798380/shocking_survey_in_new_england_journal.html?cat=75
ObamaCare has just made me Sicker!
In the notice, EmblemHealth told Gowland, who is healthy, “The proposed rate increase includes two components: a basic increase on your type plan and an increase due to the cost of enhanced benefits required by the new federal Patient Protection and Affordable Care Act.”
Mayo clinic stops taking Medicare patients
Principal To Cut Jobs, End Med Insurance Business
Obama: We knew health costs would go up
President Barack Obama insisted he can overhaul the U.S. healthcare system without raising taxes for anyone but the wealthiest Americans
The New Federal Wedding Tax: How Obamacare Would Dramatically Penalize Marriage
1099: The Trojan Horse within Obamacare
Repeal Obamacare: Small-Business Killer
Senate Expands IRS Form 1099 Reporting Requirement to Include All Rental Property Owner
Paperwork nightmare: New 1099 mandate must be repealed
Health care law*s massive, hidden tax change( 1099*s)
Lost in Taxation, The IRS*s vast new ObamaCare powers.
I suspected that was the case. No problem.
So, are you going to feel as ridiculous as I am when you ask your physician for a prescription for Ibuprofen or Nyquil?
Don’t forget that when the full effects of commiecare sets in there are taxes on the special needs children and there are taxes on NAME brand RX’s, 2.9% tax if they need a new wheel chair or braces (legs or back, not teeth).
Well, actually it probably did at one time. Consider antacids: Zantac, Tagamet, Prilosec ... once prescription drugs used to treat GERD, etc., they moved into the OTC market but the GERD didn't go away. No longer did your prescription coverage pay for these necessary drugs but at least you could use tax free money through your H/FSA. Now that is coming to an end unless you get your doc to write a script, documenting the necessity. That's the real deal: you can't be trusted.
The next step will be to find in the bill where docs are controlled on the number of scripts they write per patient.
I think that is going up as well. 10? All this nickel and dime-ing was to come up with the illusion that the bill paid for itself; it was all for the benefit of the CBO.
I confess to not keeping up with the healthcare fiasco. I have not heard anything about special needs children being taxed, would you elaborate a bit please?
Exactly. The problem is, will I be able to see my physician?
For example . . . Nothing would have prevented me from using FSA money to buy dozens of bottles of Tylenol for some medical malady that I was allegedly suffering at the time -- then selling them to family members and friends for cash.
Oddly enough, there are some astute financial advisors who would tell you that it's actually a good idea to do this under some circumstances.
If you have high recurring medical costs and consistently approach or exceed the IRS threshold for deducting medical expenses on your tax return (I believe the threshold is now 7.5%), then there's nothing wrong with asking a physician to "prescription" for other health-related items that don't legally require a prescription for purchase (Tylenol or anti-dandruff shampoo are two that immediately come to mind). Having the prescription for THESE items allows you to add THEIR cost to your itemized medical expenses on your tax return!
Because Americans deserve to suffer.
We are quite fortunate to not be in that situation. Our doc is pretty conservative, so if/when we have an appointment he might just write out scripts for these basics anyway. It just sucks that this is happening.
Obama the punisher and all the demonrats that voted for this crap without reading any of it.
They are going to regulate 15,000 over the counter meds? What the hell for other than for control. The IRS is to be the obamacare enforcement agency. Once the IRS gets it’s claws into the medical industry, it will be hell to get them out. And the detailed list of OTC meds is to be published December 15.
These people are really evil.
Why not, they are drugs aren’t they?
I was told, yes
any medicine OTC or not
even medical supplies are tax deductible
Yes I do my own taxes with turbo-tax, and I have had significant medical expenses in the past. Unfortuately, I wasn’t able to anticipate these to set up an HSA beforehand. I keep track of all medical expenses whether prescription or not and I deduct them on my taxes, even
Nic gum when I was using it.
My wife just got a packet (AARP MedicareRX Plan) containing new drug prices. Tier One drugs go up from $4 to $8, Tier Two go up 20% and Tier Three 10%. I imagine Wal-Mart and all the other “$4 Prescription” folks will adjust their prices accordingly.
I didn’t realize many OTC drugs would go Prescription Only - gotta check them out.
The list, ping
Let me know if you would like to be on or off the ping list
So, are you going to feel as ridiculous as I am when you ask your physician for a prescription for Ibuprofen or Nyquil?”
I suspect the docs knew about this already & are not happy in the least that their limited time is being used in such a manner.
Gee, Mrs Obama, I cannot take the time to give you a Pap smear because I have a waiting room full of people waiting for RX’s for Advil.
You forgot, they’re discouraging pap smears and mammogrms.
They’re cullng the population.
Oh, but you can still get Gardisil injected into your nine-year old for three types of cervical cancer (psst, never mind the deaths). /s
He's probably going to lose his job. Now for the attack on his zoning so that his trees get cut.
GO GET HIM!
My congress critter is a obama twin..just white.
IRS guidelines would have probably allowed the Tylenol for family members anyway. If not those, check out Elder Care standards, and the deal on purchasing medical insurance for a child ~ which has no age limit BTW!