Has Health Care Reform Changes Health Savings Accounts?

Upon the implementation of the Affordable Care Act, there have been some changes that affect the popular Health Savings Accounts. The new health care reform law stopped people from using a Health Savings Account (HSA) to pay for over-the-counter medications, unless a doctor prescribed them.

According to the Obama administration, that one change could save about $5 billion over a 10-year-period by cutting down on unnecessary drug purchases. Nevertheless, two Kansas Republican Senators, Sen. Pat Roberts and 2nd District Congresswoman Lynn Jenkins, along with two Democrats, have introduced a bill that would repeal that restriction.

Roberts and Jenkins joined U.S. Sen. Ben Nelson, a Nebraska Democrat, and U.S. Rep. Shelley Berkley, a Nevada Democrat, in introducing legislation to revoke section 9003 of the Affordable Care Act. According to Roberts, "This prohibition takes away choice and flexibility from individuals about how to manage their health care expenses and adds yet another burden to physicians." He also added that the provision directs people to more expensive drugs rather than helping people use less expensive over-the-counter solutions.

Should HSA Plans Be Used For Over-the-counter Drugs?

One possible problem could arise from drug interactions. When people take medications in combination with over-the-counter remedies, they risk interactions that could range from making medication ineffective to more dangerous situations. Even vitamins, minerals, herbs and a few foods can interact with medicine.

To be safe, people need to inform every doctor they see of all supplements and over-the-counter remedies they use. In the current rush to medicate, many people see different doctors who prescribe without checking what previous doctors may have prescribed.

Health Savings Accounts Have Many Ways To Reduce Health Care Costs

Despite the restriction on buying over-the-counter medications with HSA money, you can still use HSA plans to great advantage. HSA Plans can only be opened when you have one of the high-deductible plans that is qualified to work with an HSA. Quite often, these plans offer some of the lowest premiums to be found.

Whether you have an HSA Plan or standard health insurance plan, preventive care is fully covered even before you have met a plan's annual deductible. The only requirements are that you have to use in-network health care providers and they need to use the correct medical billing codes.

In addition to low-cost health plans, HSA Plans give the opportunity to reduce taxes. You can take a tax deduction for your HSA contribution whether you need the money for health care or not. In addition, any HSA funds that remain in the account grow tax-free regardless of you decide to invest the money.

You Can Make HSA Plans More Valuable

Since all HSA money you don't spend on health care ultimately becomes your retirement fund, why not keep as much as possible? That means finding low-cost ways to pay for the health care you need that's not covered by insurance.

Discounts on prescriptions are now available from many pharmacy chains and other stores that contain pharmacies, like Wal-Mart. Prescription discount cards are also available from insurance agents and on the Internet. Some insurers offer prescriptions by mail and these suppliers often give bulk discounts for a 90-day supply. Once you begin to look, you may be surprised by all the ways that you can save on health care.