House Committee Passes Retraction of OTC for FSA, now on to the Full House and Senate

Consumer Driven Market Report  Capitol  Hill Update

FSA Ban On OTC Okayed Thursday

The House Ways & Means Committee Thursday approved the bill we cited in the last email to end the ban on use of FSAs to buy non-prescription medication. The Committee voted 23-11 to eliminate a 2.3 percent tax on hip implants, pacemakers and other devices sold to hospitals; and voted 24-9 to end a ban on the use of pretax flexible spending accounts to buy nonprescription medicines. House approval is expected. Although the Senate is not likely to act immediately the House move creates momentum, especially since the correction is endorsed by the AMA, seniors groups, and a list of major employers.