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Rep. Jenkins Introduces Bill to Allow Use of Medical Savings Accounts to Purchase OTC Medications

Press Release

Date: July 25, 2013
Location: Washington, DC
Issues: Health Insurance Health and Health Care

Today, Congresswoman Lynn Jenkins (KS-02) introduced the bipartisan "Restoring Access to Medication Act" with Congressman John Barrow (D-GA) to repeal a portion of President Obama's health care law prohibiting individuals from using their medical savings accounts to purchase over-the-counter (OTC) medications such as aspirin or cold medicine.

"With nearly 50 million Americans using medical savings accounts to manage their rising healthcare costs, the Restore Access to Medication Act will put consumers back in the driver's seat and also provide savings to our medical system," said Congresswoman Jenkins. "Folks are already facing higher premiums, and requiring an unnecessary prescription for aspirin only costs families more. Congress should be doing everything we can to mitigate the negative effects from the president's healthcare law, and this bill helps do just that."

The legislation would repeal a portion of the Internal Revenue Code, Section 9003 of the Patient Protection and Affordable Care Act (PPACA), and would restore the ability of those participating in a Health Savings Account (HSA), a Flexible Savings Account (FSA), or other medical savings account, to use them to purchase OTC medications. Under current law, plan participants may no longer use these accounts to purchase OTC medications, unless they have a prescription for the medication.

A recent study found that OTC medicines contribute a total of $102 billion each year in savings and cost avoidance to the health care system. That means for every $1 spent on OTC medicines, the health care system saves $6 - $7.

Throughout the United States, a broad coalition of groups support this legislation, including the U.S. Chamber of Commerce, pharmacist groups, drug store organizations and consumer groups. This bill is similar to the bill Congresswoman Jenkins introduced in the 112th Congress, which passed the House on a bipartisan basis last summer.


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