WASHINGTON, D.C. – U.S. Senator Pat Roberts (R-Kan.) and U.S. Senator Heidi Heitkamp (D-N.D.) introduced bipartisan, bicameral legislation repealing a portion of Obamacare that prohibits people from using their medical savings account funds to buy over-the-counter (OTC) medications. The bill was cosponsored by Senators Richard Burr (R-N.C.), Marco Rubio (R-Fla.), Johnny Isakson (R-Ga.), Dean Heller (R-Nev.), Jeff Flake (R-Ariz.), Susan Collins (R-Maine), and Angus King (I-Maine).
“This prohibition in Obamacare restricts Americans’ choice and flexibility in how they manage their health care expenses and adds yet another burden on physicians,” said Roberts. “Rather than promoting cost-effectiveness and accessibility, this burdensome provision of Obamacare directs people to potentially more costly, less convenient, and more time-consuming alternatives. It should be repealed, and folks should be allowed to spend their FSAs as they see fit.”
The legislation, S. 709, repeals section 9003 of the Patient Protection and Affordable Care Act (PPACA), restoring the ability of those participating in a medical savings account, such as a Flexible Savings Account (FSA) or Health Savings Account (HSA), to use the funds to purchase OTC medications.
Under current law, plan participants may no longer use funds from these accounts to purchase OTC medications, unless they have a prescription for the medication.
Nearly 50 million Americans participate in FSAs and other health savings accounts. The accounts allow individuals to set aside their own money each year on a pre-tax basis to pay for health care expenses, such as co-payments, and other health care expenses not covered by insurance, prescriptions or over-the-counter medications.
Companion legislation was introduced in the U.S. House of Representatives by Representatives Lynn Jenkins (R-Kan.) and Ron Kind (D-Wis.).
A broad coalition of groups support this legislation, including the AARP, America’s Health Insurance Plans, the American Academy of Dermatology Association, the American College of Physicians, the American Dental Association, the American Medical Association, the American Osteopathic Association, the American Society of Association Executives, Anthem, Inc., the Associated Builders and Contractors Association, the BlueCross BlueShield Association, Consumer Healthcare Products Association, the Food Marketing Institute, the National Association of Chain Drug Stores, the National Association of Manufacturers, the National Community Pharmacists Association, the National Federation of Independent Business, the National Grocers Association, the Retail Industry Leaders Association, the Sjögren’s Syndrome Foundation, and the U.S. Chamber of Commerce.
Senator Roberts is a member of the Health, Education, Labor and Pensions Committee and the Senate Committee on Finance. He is the co-chair of the Senate Rural Health Caucus.