One of the revenue raiser provisions in the Patient Protection and Affordable Care Act would restrict the ability of millions of Americans to purchase over-the-counter (OTC) medicines using funds from tax-preferred accounts such as flexible spending accounts (FSAs).  OTC medicines provide relief for minor ailments and help reduce unnecessary, time-consuming and costly visits to the doctor. Imposing a new tax on consumers, and limiting their choice and ability to obtain affordable OTC treatment options using their FSA funds, is contrary to the goals of reducing costs and improving choice in the healthcare system. Additionally, an IRS regulation effective on January 1, 2008 required supermarkets to implement an elaborate matching system to ensure customers were purchasing only eligible items under their FSA account. Upgrading retailer technology and point-of-sale equipment to support this type of complicated payment transaction cost the retail community tens of millions of dollars. Changing the rules after these investments were made by retailers, and consumers have just started to rely on their FSA accounts, does not serve the interest of either consumers or retailers.

Dear [ Decision Maker ] ,

On behalf of my company, I would like to express our concern with the provision in the Patient Protection and Affordable Care Act that would restrict the ability of millions of Americans to purchase over-the-counter (OTC) medicines using funds from tax-preferred accounts such as flexible spending accounts (FSAs).

Imposing a new tax on consumers, and limiting their choice and ability to obtain affordable OTC treatment options using their FSA funds, is contrary to the goals of reducing costs and improving choice. OTC medicines are important for the prevention, treatment, and relief of minor ailments, helping to reduce unnecessary doctors' visits, lost time at work, and the potential need for a consumer to obtain more expensive prescription drugs. Making access to these medicines more difficult or more expensive simply does not make sense when reducing costs in our healthcare system is critical to ensuring affordable access for all individuals.

An IRS regulation effective on January 1, 2008 required supermarkets to implement an elaborate matching system to ensure customers were purchasing only eligible items under their FSA account. Upgrading retailer technology and point-of-sale equipment to support this type of complicated payment transaction cost the retail community tens of millions of dollars. After this significant investment has been made, the current Senate health care legislation now would disallow many of these "approved" items because they are over-the-counter purchases unless the customer goes to their doctor to get a prescription, thus driving up cost for the nation's healthcare system, and in particular, for the one in three Americans who last year chose to rely on home remedies and OTC medicines over a cost prohibitive trip to the doctor.

Changing the rules after these investments were made by retailers, and consumers have just started to rely on their FSA accounts, does not serve the interest of either consumers or retailers. Additionally, requiring the business community to make a multi-million dollar investment in technology in 2007 and 2008 and two years later making it obsolete is unfair to affected retail entities and consumers.

We welcome the opportunity to work with you during the amendment process to preserve affordable consumer access to OTC medicines through FSA accounts and to make changes we believe will improve this legislation.

Sincerely,

Campaign Launched:
December 11, 2009