Pre-tax accounts will soon be available for use on cold, flu, allergy and menstrual medicines….
(Joshua Paladino, Liberty Headlines) Congress officially passed the Coronavirus Aid, Recovery and Economic Security Act on Friday with a provision that will benefit Americans with Health Savings Accounts and Flexible Spending Accounts.
The act repeals Obamacare’s Medicine Cabinet Tax, a law that prevents Americans from buying over-the-counter medicines with their HSAs and FSAs, Americans for Tax Reform reported.
Once implemented, Americans will be able to use their pre-tax insurance dollars to buy “cold and flu drugs, allergy medication, children’s fever relievers, and menstrual cramp relief medication.”
The Medicine Cabinet Tax fell predominately on middle-class Americans.
The Medicine Cabinet Tax raised $8.5 billion in taxes over 10 years.