There’s bound to be a lot of news about President and Obama regarding his dealings with pharmaceutical industry lobbyists for two reasons, first because there is news about dealings he had with pharmaceutical representatives in order to get their support for the PPACA of 2010, (for instance see Peter Baker’s article of 6/8/2012 in “The New York Times.”)*
Second because the House Committee on Ways and Means on May 31, 2012 has proposed that effective in December of 2012 Section 9003 of the PPACA of 2010 repeal its definition of medical care that results in no available reimbursements from HSA accounts (or flexible spending account, Health FSA or health reimbursement account, HRA) for the purchase of over the counter medications and drugs without a prescription except insulin called, “The Restoring Access to Medication Act,” H.R. 5842. **
So what’s newsworthy about the deal with big pharma? The issue was raised in a “Los Angeles Times” article of August 14, 2009 written by Tom Hamburger entitled, “White House Deal with drug Firms Draws Flak.”*** That article disclosed an $80-billion 10-year cost savings deal big pharma would agree to in exchange for a cap at $80 billion and no requirements of rebates for drugs prescribed through Medicare and Medicaid.***
Ostensibly the issue arises because of additional emails that have surfaced showing the relationship between the President and big pharma.
The “arrangement” was and continues to disappoint those whose votes and hopes were based on healthcare reform promises by the President and was, at that time seen as partially responsible for the omission of addressing the importation of drugs as a cost savings option for consumers by the PPACA of 2010. This omission left the importation of cheaper drugs from Canada and elsewhere as ILLEGAL as reported in the, “Information on Importation of Drugs Prepared by the Division of Import Operations and Policy, FDA,” citing United States Federal Food, Drug and Cosmetic Act, 21 U.S.C. section 331).****
The second issue regarding PPACA of 2010 section 9003 which tightens requirements for using funds from various reimbursed accounts for health care from flexible savings accounts for healthcare, FSAs, health reimbursement accounts, HRAs and health savings accounts, HSAs by requiring prescriptions for medications to qualify for such funds now faces a real challenge by the proposed, “The Restoring Access to Medication Act.”
It’s unclear whether vitamins prescribed as part of a regimen for controlling cholesterol and promoting general health or other over-the-counter medications will once again be restored for eligibility for reimbursement from these accounts but it can make a difference for consumers.
HSAs became the darlings of the health insurance industry when they were revived as an affordable health insurance option using high-deductible plans in combination with pre-tax dollars set aside in an account that could be used for medical expenses including satisfying the high deductible. Unfortunately, the failure of health insurance plans to carefully scrutinize submissions for reimbursement to ensure they were for medical expenses as well as the ability for richer individuals to use the plans as a means of sheltering tax-free income created the current HSA environment of health savings versus income shelter versus retirement vehicle that we have today.
Today individuals can contribute up to $3,100 into an HSA and families can contribute up to $6,250 annually. The dollars held in these savings accounts can be held in interest-bearing accounts, money market accounts or even mutual funds indicating and can be held forever for use for eligible medical expenses. (Monies taken out for other uses besides eligible medical expenses are subject to a 20 percent tax section 9004.)
*http://www.nytimes.com/2012/06/09/us/politics/e-mails-reveal-extent-of-obamas-deal-with-industry-on-health-care.html?pagewanted=1&_r=1&ref=health
** https://www.jct.gov/publications.html?func=startdown&id=4432
*** http://www.latimes.com/news/nationworld/nation/la-na-health-pharma14-2009aug14,0,5896090.story
****http://www.fda.gov/ForIndustry/ImportProgram/ucm173751.htm?utm_campaign=Google2&utm_source=fdaSearch&utm_medium=website&utm_term=importation%20of%20drugs&utm_content=1
