GMDC Opposes FSA Provision

COLORADO SPRINGS —Global Market Development Center, the nonfood association here, joined other industry associations last Friday, in calling for the reversal of the Cough and Cold Tax provision of the Patient Protection and Affordable Care Act.

COLORADO SPRINGS — Global Market Development Center, the nonfood association here, joined other industry associations last Friday in calling for the reversal of the Cough and Cold Tax provision of the Patient Protection and Affordable Care Act.

The provision prevents consumers from using flexible spending accounts to purchase over-the-counter medicines without a prescription, and is scheduled to go into effect on Jan. 1, 2011.

The GMDC communication to House and Senate leadership asserted that the Department of Treasury also proposed rules that would unfairly prohibit consumers from using FSA debit and credit cards to purchase OTC medicines, beginning Jan. 15, 2011.

“The new FSA restrictions will add additional confusion, expense and eliminate a benefit many consumers have come to depend upon to cost-effectively purchase medicines they need,” stated Dave McConnell, GMDC president and chief executive officer, in a press statement this week.