Testimony for House Committee on Ways & Means: Impact of Limitations on the Use of Tax-Advantaged Accounts for Purchase of OTC Medication

Part of the reason we’re here today is to discuss a provision of the Patient Protection and Affordable Care Act (PPACA, P.L. 111‐148/P.L. 111‐152) that requires holders of tax‐preferred healthcare accounts (such as Flexible Spending Arrangements and Health Savings Accounts) to seek a physician’s prescription if they wish to use those accounts to purchase an over‐the‐counter medicine. We believe this requirement is bad policy for both the American consumer and the U.S. healthcare system.