Millions of American workers have recently been told they will have to pay higher premiums for their employer-sponsored health insurance, or else have their coverage canceled, all thanks to Obamacare. But this is only the beginning — it gets worse.
Employees who use tax-free Flexible Spending Accounts and Health Savings Accounts to pay for out-of-pocket medical expenses will soon have to reconsider their decision to do so. Starting Jan. 1, Obamacare forbids use of an FSA or HSA to purchase over-the-counter medicines without a doctor’s prescription. For HSA users, this is an inconvenience and an added expense, but it’s much worse if you have an FSA. Unlike HSAs, you lose all the leftover cash in your FSA unless you spend it by year’s end. What’s more, any forfeited funds are also taxed, even though you didn’t spend them and can’t get them back. Further, already heavily scheduled doctors will have to accommodate yet more appointments and phone calls, thus reducing the time available for diagnosis and treatment of all patients.
