Transcript Consumer Education Programs in Action Mexico

Tax Deduction for Self-Care Expenses
Scott Melville
President & CEO
Consumer Healthcare Products Association
We are committed to promoting the role of
OTC and Dietary Supplement products through
science, education, and advocacy.
Serving the self-medication industry since 1881
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Self-Treatment Saves Time and Money
Health Insurance Coverage in the U.S., 2010
Total: 305.2 Million
Medicare: 12%
Private:
5%
Medicaid: 17%
Employer-Sponsored Insurance:
49%
Uninsured: 16%
SOURCE: KCMU/Urban Institute analysis of 2011 ASEC Supplement to the CPS.
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Avg. Annual Health Insurance Premiums and
Worker Contributions for Family Coverage, 2005-10
$13770
$1,284 Worker
Contribution Increase
27 %
$3997
$3997
$10,880
$2713
47 %
$2713
20 %
$9773
$8167
2005
2010
Employer Contribution
Worker Contribution
Source: Kaiser/HRET Survey of Employer-Sponsored Health Benefits, 2005-2010.
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National Health Expenditure and % of GDP,
1960-2009
$ in Billions
$3,000
17.6%
$2,500
16%
$2,000
13.8%
$1,500
$1,000
$500
5.2%
$0
Source: Centers for Medicare and Medicaid Services, Office of the Actuary, National Health Statistics Group
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HSA vs. FSA
HSA
Health Savings
Accounts
FSA
Flexible Spending
Arrangements
Overview
A bank account to save and pay
for medical expenses tax-free.
Pays for out-of-pocket expenses
not covered by medical plan taxfree.
Eligibility
Must accompany a highdeductible health insurance plan.
Eligibility is set by your
employer.
Yes
No
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Rollover/Portable?
Annual
Contribution
Single coverage limit: $3100
Family coverage limit: $6250
No current limit
In 2013, limit will be $2500.
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Examples of Eligible Medical Expenses
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Bandages
Contact lenses
Insurance co-payments
Dentures
Diabetic monitors
Eyeglasses
Hearing aids
Insulin
Medical equipment
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Orthotics
Orthodontia
Prescription medicines
X-rays
Source: www.wageworks.com
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FSA Participation By the Numbers
# of
Participating
Americans
35
Million
Annual
Salary
$55,000
Annual FSA
Contribution
$1386
Source: According to the Employers Council on Flexible Compensation (ECFC), 2008
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Rev. Rul. 2003-102: Reimbursements of
OTCs Are Excludable from Gross Income
Effective Sept. 22, 2003
‘‘Self-insured medical reimbursement plans: This
ruling holds that employer reimbursements of
amounts paid by an employee to purchase
nonprescription medicines and drugs are excludable
from gross income under section 105(b) of the
Code.’’
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SEC. 9003 Distributions For Medicine
Qualified Only for Prescribed Drug or Insulin
Effective Jan. 1, 2011
‘‘Reimbursement for expenses incurred for a
medicine or a drug shall be treated as a
reimbursement for medical expenses only if such
medicine or drug is a prescribed drug (determined
without regard to whether such drug is available
without a prescription) or is insulin.’’
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2010 Healthcare Reform Law
Intent vs. Reality
Intent of Law
Reality of
OTC Provision
Decrease
Costs
Increase
Costs
Expand
Access
Reduce
Access
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Industry Imperative
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The Value of OTC Medicine to the
United States
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7 Most Common Self-Treatable
Conditions
Allergy
Upper GI
Analgesics
Lower GI
Anti-fungal
Medicated
Skin
Cough/Cold
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OTC Industry Value to Consumers
Access
Trust
Empowerment
Affordability
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“This study shows how important overthe-counter medicines are for millions of
American families”
Source: Nobile Photo
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Health Choices Coalition Members
 Aetna
 America’s Health
Insurance Plans
 American Academy of
Dermatology
Association
 American College of
Physicians
 American Medical
Association
 American Osteopathic
Association
 American Society for
Association Executives
 Bayer HealthCare
Consumer Care
 Blue Cross Blue Shield
Association
 Consumer Healthcare
Products Association
 CVS Caremark
 Food Marketing
Institute
 National Association of
Chain Drug Stores
 National Association of
Manufacturers
 National Community
Pharmacists
Association
 National Federation of
Independent Business
 National Grocers
Association
 Prime Therapeutics
 Retail Industry Leaders
Association
 Sjögren’s Syndrome
Foundation
 U.S. Chamber of
Commerce
 Wellpoint
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House Ways and Means Committee
FSA Hearing, April 25, 2012
Source: Nobile Photo
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Gaining Momentum
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Thank You
Contact Information:
202.429.9260
[email protected]
www.chpa-info.org
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