By using this site, you agree to the Privacy Policy and Terms of Use.
Accept
Health Works CollectiveHealth Works CollectiveHealth Works Collective
  • Health
    • Mental Health
  • Policy and Law
    • Global Healthcare
    • Medical Ethics
  • Medical Innovations
  • News
  • Wellness
  • Tech
Search
© 2023 HealthWorks Collective. All Rights Reserved.
Reading: OTC Drugs Should Qualify as Medical Expense for Tax Purposes
Share
Notification Show More
Font ResizerAa
Health Works CollectiveHealth Works Collective
Font ResizerAa
Search
Follow US
  • About
  • Contact
  • Privacy
© 2023 HealthWorks Collective. All Rights Reserved.
Health Works Collective > Policy & Law > Health Reform > OTC Drugs Should Qualify as Medical Expense for Tax Purposes
Health Reform

OTC Drugs Should Qualify as Medical Expense for Tax Purposes

JohnCGoodman
JohnCGoodman
Share
2 Min Read
SHARE

Utah Sen. Hatch introduced a bill in Congress that would repeal the provision of the Affordable Care Act that removed OTC medications as eligible medical expenses under IRS code 213(d). In addition, the bill would remove the use-it-or-lose-it provision.

Utah Sen. Hatch introduced a bill in Congress that would repeal the provision of the Affordable Care Act that removed OTC medications as eligible medical expenses under IRS code 213(d). In addition, the bill would remove the use-it-or-lose-it provision.

Consumers have long used over-the-counter (OTC) remedies to treat minor symptoms. Increasingly, traditional self-treatments have been joined by new, potent medications that the U.S. Food and Drug Administration (FDA) has moved from prescription-only to OTC status. Consumers benefit from self-administered OTC medications with lower prices and easier access. Thus it was shortsighted for Congress to declassify OTC medications as Eligible Medical Expenses under IRS code 213(d).

 The amount of tax revenue gained by prohibiting the purchase of OTC medications with pre-tax dollars is estimated at no more than $5 billion from 2011 through 2019. However, the cost to patients and insurers could be far higher. OTC medications originate from the safest prescription medications — those judged safe enough to self-administer without a doctor’s prescription. In addition, many Americans will substitute more costly prescription medications that are reimbursed by their health plan pushing premiums up. At the very least Americans will pay higher prices.  The discount for using an HSA, FSA or HRA to pay for OTC medications can approach 40% to 45% when federal and state income tax, and payroll tax is factored in.

More Read

FDA Criticized for Lack of Controls over Increasing Prescription Narcotic Abuse
The Evolution of Medicare Telehealth Reimbursement
Andre Blackman: Sustain or Die Manifesto [PODCAST]
Consumer-Directed Tax Shelters
Health Wonk Review: Mud Season Edition
   

TAGGED:healthcare reformpharmaceuticals
Share This Article
Facebook Copy Link Print
Share

Stay Connected

1.5kFollowersLike
4.5kFollowersFollow
2.8kFollowersPin
136kSubscribersSubscribe

Latest News

How Setting Boundaries Helps Trauma Survivors Heal
Health
October 30, 2025
how to improve REM sleep
Unlock Better Sleep: How to Improve REM Sleep Naturally
Wellness
October 30, 2025
uv protection in winter
Winter Sun Safety: Why UV Protection Matters Year-Round
Health
October 29, 2025
Nurse Scheduling Software
Evaluating 7 Best Nurse Scheduling Software
Nursing Technology
October 28, 2025

You Might also Like

IPAB: Fix It, Don’t Repeal It

August 9, 2011

Physician Communication and Patient-Centered Care: How to Improve Internal Communication

October 2, 2013
insurance on obamacare
BusinessFinanceHealth ReformPolicy & LawPublic Health

Sometimes, Even If You Like Your Insurance, You Can’t Keep It

November 6, 2013

Churning in ObamaCare

March 30, 2011
Subscribe
Subscribe to our newsletter to get our newest articles instantly!
Follow US
© 2008-2025 HealthWorks Collective. All Rights Reserved.
  • About
  • Contact
  • Privacy
Welcome Back!

Sign in to your account

Username or Email Address
Password

Lost your password?