Yesterday, we talked about how health care reform affects flexible spending accounts (FSAs).
Beginning in 2011, new health care reform legislation will affect Health Savings Acccounts (HSAs) in the following ways:
- The tax penalty on distributions from HSAs not used for qualified medical expenses will be increased from 10% to 20%
- Non-prescribed over-the-counter drugs will no longer be qualified medical expenses
The health care reform bill makes no changes to how employers and employees make contributions to an HSA.