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“We Have to Pass the Bill So You Can Find Out What’s In It”

Like a lot of people, during the debate over Obamacare, I struggled to keep up with what was in the various different versions and forms of the bill that were being debated. Included in “a lot of people” were apparently most members of Congress, especially Nancy Pelosi, who famously quipped (apparently without a hint of irony) that “We have to pass the bill so you can find out what’s in it.”

Today, completely out of the blue two weeks before election day, I got an email from the HR coordinator at my work that pursuant to IRS ruling sparked by Obamacare, over-the-counter drugs will no longer be covered under FSAs and HSAs, which almost everyone at my work has. Now, it turns out that a lot of policy-wonkish people were paying attention to this issue during the Obamacare debate (see here, here, here, and here). I have to tell you, though, that although I am a fairly plugged-in guy, I had no idea this was coming at all until I got the notice from my work.

I wonder how many other people are going to be finding out in the last couple weeks before the election other delightful tidbits like this. Ideally, of course, this is the sort of thing that would have been subjected to a more careful analysis and debate, but in Nancy Pelosi’s judgment, it was better for Congress just to pass the damn bill and let people find out the hard way. Presumably, that’s at least more entertaining at least for the Democrats who passed the bill without reading it themselves.

Ben Domenech interviewed Congressman Paul Broun (R-GA) today and asked him about this very issue. You can download the podcast here; it’s worth a listen. Then, when you go to the polls 18 days from now, remember to ask your coworkers whether they would prefer that Congress be controlled by people like Nancy Pelosi, who think it’s a good idea to pass bills so we can find out what’s in them like this, or people like Paul Broun.

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COMMENTS

  • smitch61

    I was shocked as well.. and I am with you, paid attention to everything.. I also just learned that we will be paying taxes on the premium that our employer pays, on top of what we pay. That is tax on income we do not see. I had thought we would be taxed on our portion, but according to my husband’s HR dept. it is the whole enchilada….

    • ctaylor7

      You won’t be paying taxes on the premiums. You can verify by going to www.irs.gov click on the link in the middle of the page that refers to the “Affordable Care Act” and the first “point” they make is the premiums shown on the W-2 aren’t treated as taxable income. I see the e-mail going around about that one on a daily basis and have to keep sending the message back to the sender that it’s just not true. There’s enough bad in the bill (as in all 2,700+ pages of it), but we shouldn’t pass on inaccurate information. And, I will pass on this one caveat…the premiums aren’t taxed….yet. New regulations were also released this past week delaying the premiums showing on the W-2′s by a year (voluntary this coming year, required in 2012).

      I’ve read the 2,700+ pages, including much of the released regulations, as I’m in the health insurance industry (I’m an evil insurance agent for 20+ years).

      Yes, OTC’s cannot be purchased with FSA/HSA/HRA accounts as of 1/1/2011, and FSA accounts will be limited to $2,500 in 2013.

      Something that many are not spreading around out there….there is $85 million appropriated each year from this year to 2014 to train those on welfare to be your new health care provider….talk about a death panel…I wouldn’t want someone that games the welfare system (and many do) to be my new doctor. I can see where that will increase fraud through the roof….and of course, all this is on the backs of those of us who do work.

  • JoeG

    At the time it was just one more thing to get pissed about.

    I intend to go spend a bunch of money out of my FSA in late December while I still can.

  • JSobieski

    Killing HSAs is a move to kill markets. HSAs are the best free market approach to reforming healthcare, including Medicare and Medicaid.

    HSAs are pro freedom and pro markets.

    So of course, HSAs are the first targets. So much for keeping the coverage that you have . . .

    • izoneguy

      and I told him – You know ObamaCare is going to blow that up?

      He refused to believe it.

      I should ask him how I can start an HSA…..

      • http://www.marklaiminger.org Lammo

        If I like my current plan I get to keep it, right? I mean, the former junior senator from the state of illinois promised me, didn’t he?

        /sarc

        HSAs meet your expiration date.

      • JSobieski

        once the Secretary of HHS starts defining what the miminum coverage requirements are, HSAs are done. I believe those regulations go into effect in 2013

  • Craig Dusek

    and saw a potential consequence that more people would switch to prescription drugs instead of OTC’s.

    I believe there are now lower caps as to what you can contribute to these plans. I know for the FSA it is $2500, not sure on HRA plans.

  • Deskpilot

    products previously allowed by HSA plans will end up in a price war to keep customers buying their products and avoiding insurance, government and the doctors office all together, or is a runny nose going to increase the lines at the doctors office, therby generating a co-pay payment for that, an insurance claim, and then a cross-town trip to the Pharmacy.
    Dr.s’ office will have to hire more receptionists, insurance billing clerks etc. That potentially equals more SEIU members, Pharmacies will end up having to hire more folks too to handle the onslaught of customers waiting in line for what they would have purchased OTC products for.
    So,the equation looks like this:
    If cost of fuel+time wasted < OTC (unreimbursable) then Obamacare wins.
    If OTC(unreimbursable)< cost of fuel+wasted time, then market forces win