It’s open-enrollment time again. By now you likely have seen your premiums for next year and adjusted to the higher cost of insurance, or you are looking for a new insurance policy. As if that wasn’t stressful enough, you will have fewer options for using your medical dollars in the new year.
The Patient Protection and Affordable Care Act (PPACA) caps flexible spending account (FSA) contributions at $2,500 per year. It also forbids using your FSA, health savings account (HSA), or other consumer-driven account to purchase most over-the-counter drugs without a prescription. And your plan year won’t save you. The drug restriction starts January 1, 2011, for everyone.
It does not matter that these accounts are a proven way to reduce the cost of health care while maintaining or improving health outcomes. The law starts from the assumption, common in health policy circles, that consumers do not know enough and will either abuse the system or go without necessary care. These assumptions provide the shaky foundation for jargon-laden projects such as accountable care organizations, comparative effectiveness research, health IT (which provides information to doctors and hospitals instead of patients), and value-based insurance design.
So, stock up on aspirin now. The headaches of health care will only get worse under the new law.
Note: There will be no Health Care Update next week. Happy Thanksgiving.
