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.
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.
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?
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.