Under the Affordable Care Act, health coverage provided for an employee’s children under the age of 27 is now tax free to the employee effective March 30, 2010. If you have a cafeteria plan or a Section 125 plan, employees can make pre-tax contributions to this plan to pay for this benefit. See more information on this topic at the IRS website.
And the 65% subsidy on COBRA health insurance premiums has been extended past March 31, 2010. This subsidy covers employees who are involuntarily separated from their jobs between September 1, 2008 to May 31, 2010 and lasts for a period of 15 months. Eligible workers pay 35% of their premium to their former employers and the employer applies for a credit of 65% on their payroll tax return. See more information on this topic at the IRS website.
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While that helps, it still don't change the fact that next year, OTC drugs are not covered. I find that the non-prescription thing to be quite annoying. As more and more drugs follow the path of going generic and then OTC, physicians are willing to write fewer and fewer prescriptions for medications. Insurance companies have been directing them to point patients to the growing body of OTC drugs so that health insurance doesn't pay for them. Now, I have no means of getting reimbursement.
In this case, that means that Zyrtec - my allergy medication - will effectively no longer be covered. It also means that my Alleve - required for my arthritis - will also no longer be covered. And since I take Alleve, I also must take an acid reducer - which you guessed it - is also now no longer covered as it is also OTC. Thank you for nothing!!!
Zyrtec tablets - $20/month
Zyrtec eye drops - $15/month
Alleve - $15/mo
Prevacid - $29/month
That's $80 per month or $960 a year in OTC medications. These are already things that are not covered by insurance and now they won't be covered by my HSA either!
Agreed. Ironically there are a number of provisions in the Health Care Act that take away current benefits.
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