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Tax Deduction for Self-Care Expenses

Tax Deduction for Self-Care Expenses. Scott Melville President & CEO Consumer Healthcare Products Association. We are c ommitted to promoting the role of OTC and Dietary Supplement products through science, education, and advocacy. S erving the self-medication industry since 1881. 2.

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Tax Deduction for Self-Care Expenses

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  1. Tax Deduction for Self-Care Expenses Scott Melville President & CEO Consumer Healthcare Products Association

  2. 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 2

  3. Self-Treatment Saves Time and Money

  4. Health Insurance Coverage in the U.S., 2010 SOURCE: KCMU/Urban Institute analysis of 2011 ASEC Supplement to the CPS.

  5. Avg. Annual Health Insurance Premiums and Worker Contributions for Family Coverage, 2005-10 Source: Kaiser/HRET Survey of Employer-Sponsored Health Benefits, 2005-2010.

  6. National Health Expenditure and % of GDP, 1960-2009 17.6% 16% 13.8% 5.2% Source: Centers for Medicare and Medicaid Services, Office of the Actuary, National Health Statistics Group

  7. HSA vs. FSA

  8. Examples of Eligible Medical Expenses • Bandages • Contact lenses • Insurance co-payments • Dentures • Diabetic monitors • Eyeglasses • Hearing aids • Insulin • Medical equipment • Orthotics • Orthodontia • Prescription medicines • X-rays Source: www.wageworks.com

  9. FSA Participation By the Numbers Source: According to the Employers Council on Flexible Compensation (ECFC), 2008

  10. Rev. Rul. 2003-102: Reimbursements of OTCs Are Excludable from Gross IncomeEffective 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.’’

  11. SEC. 9003Distributions For Medicine Qualified Only for Prescribed Drug or InsulinEffective 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.’’

  12. 2010 Healthcare Reform Law Intent vs. Reality

  13. Industry Imperative

  14. The Value of OTC Medicine to the United States

  15. 7 Most Common Self-Treatable Conditions

  16. OTC Industry Value to Consumers

  17. “This study shows how important over-the-counter medicines are for millions of American families” Source: Nobile Photo

  18. 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’sSyndrome Foundation • U.S. Chamber of Commerce • Wellpoint

  19. House Ways and Means Committee FSA Hearing, April 25, 2012 Source: Nobile Photo

  20. Gaining Momentum

  21. Thank You Contact Information:202.429.9260 melville@chpa-info.org www.chpa-info.org

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