Consumers would be able to use health savings accounts (HSA) and flexible spending accounts (FSA) to purchase over-the-counter medications under bipartisan legislation recently introduced by U.S. Rep. Lynn Jenkins (R-KS).
The Restoring Access to Medication Act, which Jenkins introduced with U.S. Rep. Ron Kind (D-WI), would repeal a provision of the Affordable Care Act (ACA) prohibiting over-the-counter (OTC) medication purchases with tax-advantaged medical savings accounts.
“For years, Kansans and folks across the country have used health savings accounts and flexible savings spending accounts to help save and pay for over- -the-counter medication,” Jenkins said. “Unfortunately, President Obama’s health care law made use of these accounts more expensive and burdensome. This bipartisan legislation will repeal this tax so families and individuals can better manage their own health care expenses.”
U.S. Sens. Pat Roberts (R-KS) and Heidi Heitkamp (D-ND) introduced a similar bill in the Senate.
Many Americans depend on OTC medications for minor illnesses prior to seeking treatment with a health care provider. Using OTC medications helps reduce unnecessary doctor visits and provides a significant cost savings for consumers.
According to a study conducted by the Consumer Healthcare Products Association, OTCs save consumers and the health care system $102 billion each year, and for every dollar spent on OTC medications in the United States, the health care system saves $6 to $7.
“This legislation is a commonsense solution that will help put health care cost management back where it belongs — in the hands of the American people,” Jenkins wrote in a recent op-ed in the Washington Examiner.
“House Republicans are working to repeal the Affordable Care Act and transition to a more patient-centered health care system. We have already begun taking steps to help make health care costs much more affordable while ensuring certain aspects of the Affordable Care Act, such as allowing dependents to stay on their parent’s health care plan until the age of 26, are strengthened,” she said.