FSAstore.com Supports New Legislation to Reverse OTC Rx Provision
On March 23, 2015, Senator John Barrasso (R-Wyo.) and Representative Erik Paulsen (R – Minn.) introduced new legislation known as The
Family Health Care Flexibility Act.
This would repeal the portions of the Affordable Care Act that put a $2,500 cap on Flexible Spending Accounts (FSAs) and prohibit purchase of Over-The-Counter (OTC) medicines using an FSA or
Health Savings Account (HSA) without a prescription.
If passed, the legislation would mean that a prescription would no longer be required to purchase items like OTC pain relievers or allergy medicines with an FSA or HSA. According to the announcement and Paulsen, “Health savings and flexible spending accounts put power in the hands of patients by letting them make their own decisions when it comes to their care," said Rep. Paulsen. “It makes no sense that the President's healthcare law prohibits a parent from using these accounts to purchase
over-the-counter allergy treatment or cold medicine for their child without a doctor's prescription. As health care costs continue to rise, Washington should allow more choices in health care, not fewer options."
Similar legislation, H.R. 1248, was previously introduced in the House by Representative Paulsen on March 19, 2013 with 48 cosponsors but was not enacted.
Please note: The FSA contribution limit increased to $2,550 as of January 1, 2015.