Health Savings Account Changes....
February 21, 2011By Beth Reitler
High Deductible Health Plans and Health Savings Accounts are one of the most popular types of health insurance plans purchased by small business owners and individuals. This type of plan can provide insureds with a valuable tool to reduce taxable income through the use of the health savings account for qualified medical expenses.
As of January 1, 2011 the list of "qualified medical expenses" for HSA accounts has changed. Most notably, Over-the-Counter drugs are no longer qualified medical expenses unless the patient has a valid prescription from a physician for the OTC drugs.
Also, the penalty for using funds from an HSA account has increased from 10% to 20%.
Visit http://www.healthequity.com/ResourceCenter/HealthcareReform for more valuable information on the changes health care reform has mandated for HSAs, FSAs and HRAs as of January 1, 2011.
