The U.S. House of Representatives June 7 passed the Health Care Cost Reduction Act of 2012 (H.R. 436) by a vote of 270-146. The bill would repeal two tax increases contained in the Patient Protection and Affordable Care Act (PPACA).
Specifically, H.R. 436 would repeal the new 2.3 percent medical device tax, which would be passed on to the consumer through higher premiums, and the prohibition on using tax-preferred funds from Health Savings Accounts (HSAs) and Flexible Spending Arrangements (FSAs) to purchase over-the-counter medication.
Before the vote, ABC on June 6 sent a letter to members of the House offering support for the bill and urging Congress to pass it.
“ABC has always advocated for HSAs and FSAs, allowing more small business owners to obtain affordable health coverage for themselves and their employees,” ABC wrote in the letter. “Prohibiting the use of these accounts for over-the-counter medications has increased health care costs and added additional burdens on individuals.”