Changes to Health Savings Account...what's the reasoning?

[monkeydog]

One of the new provisions of the insurance reform bill is that beginning Jan 1, over the counter products will no longer be eligible for reimbursement without a prescription.

Can anyone tell me why this is a good thing? It seems to me that it is just a gift to pharma and the insurance industry (meaning, I either have to pay a doctor to write me a prescription for OTC medicine, or use prescription medicine).

What is the rationale for this? How does this help anything? I can't wrap my head around it, honestly.

[dflprincess]

1. Many people probably won't bother to get a scrip for an OTC product

so, in some ways, it's also a gift to what ever bankster/brokerage house is administrating your HSA as it will give them less work to do (or their computers) and keep more money just sitting in your account.

The other thing about HSAs is once you get $2,000 (maybe $3K) in the account you can INVEST IT IN A MUTUAL FUND! What deal for you. Just be sure that if you get sick and need to draw on the account you do it before the next crash.

Like 401Ks these "consumer driven" health plans were devised to funnel more money to Wall Street as well as allowing the insurance companies to continue overcharging on premium while paying out fewer claims .

[superduperfarleft]

2. Tax revenue.

They also increased the penalties for unauthorized withdrawals.

[lukasahero]

3. "just a gift to pharma and the insurance industry"

Isn't everything these days?

"How does this help anything?" It helps insurance and big pharma - screw the individuals.

(Sorry, feeling a little disappointed these days...)

[cbdo2007]

4. They have to pay for the rest of the health care changes somehow.

Really though only like 1% of all HSA money is spent on OTC medications that won't be included anymore so they're sacrificing some things like this for the other better parts of the health care plan, like the free PCP visit with no copays for preventative.

[PoliticAverse]

5. You seem to understand it perfectly. n/t.

[Lance_Boyle]

6. Not all OTC products - mostly just medicines. Bandages, contact lens solution, etc.

can still be purchased on these accounts without a "doctor's note." Curiously, the one thing that stands out to me as "still available" after the first of the year is "magnet therapy." So I can't use my reimb. account to get some damn Aleve, but I *can* use it to buy a wristband with a magnet in it. I wonder if it will cover tiger-repelling rocks, too?

[monkeydog]

7. good to know

Good to know I can still buy bandages and snake oil.

I wondered if there were some spin or rationale -- but I guess they aren't even trying on this one!