Based Plans Q601. How will health care reform affect health savings accounts?
A601. There are only two direct changes to Health Savings Accounts (HSAs) under the law, both of which become effective January 1, 2011. First, amounts paid for over-the-counter drugs generally will no longer be treated as medical expenses—only expenses for prescribed drugs and insulin will qualify for reimbursement. In addition, the penalty for all non-medical expense reimbursements will increase from 10 to 20 percent. Employer-sponsored HSA-compatible high deductible health plans (HDHP) will be affected in the same way as other group health plans.
