- This topic has 365 replies, 22 voices, and was last updated 14 years, 7 months ago by
briansd1.
-
AuthorPosts
-
March 24, 2010 at 2:18 PM #531427March 24, 2010 at 2:37 PM #530501
meadandale
ParticipantAnother take on the “Medicine Cabinet Tax”:
And this tax change will almost certainly cost the health care system billions more dollars in unnecessary spending both to the government and private insurance plans. The Joint Committee on Taxation estimates that the tax hike will bring in $5 billion in revenues over ten years – itself a drop in the bucket when compared to the bill’s new trillion-dollar entitlement – but that estimate doesn’t take into account behavioral changes as a direct result of this provision.
OTC drugs are much cheaper those available for prescription, but they could now be more expensive to individual consumers given that prescription drugs would still be eligible for favored treatment in the tax plans, and that insurance companies would be mandated to cover many of them. Consequently, any time a consumer has the slightest headache, the financial incentive would often be to see a doctor and get a prescription rather than go to the store and get medicine off the shelf.
This could mean that billions will be wasted on the additional costs for prescription drugs in instances when OTC medicines could be just as safe and effective at treating the illness. A 2005 study in the American Journal of Managed Care found that the Food and Drug Administration’s clearing of antihistamines such as loratadine (Claritin) for over-the-counter sale saves about $4 billion a year in health care costs. Ironically, the liberals and Democrats who normally rail against big pharmaceutical companies are now creating a huge windfall the firms that make expensive prescription drugs by penalizing users of OTC medicines.
March 24, 2010 at 2:37 PM #530629ParticipantAnother take on the “Medicine Cabinet Tax”:
And this tax change will almost certainly cost the health care system billions more dollars in unnecessary spending both to the government and private insurance plans. The Joint Committee on Taxation estimates that the tax hike will bring in $5 billion in revenues over ten years – itself a drop in the bucket when compared to the bill’s new trillion-dollar entitlement – but that estimate doesn’t take into account behavioral changes as a direct result of this provision.
OTC drugs are much cheaper those available for prescription, but they could now be more expensive to individual consumers given that prescription drugs would still be eligible for favored treatment in the tax plans, and that insurance companies would be mandated to cover many of them. Consequently, any time a consumer has the slightest headache, the financial incentive would often be to see a doctor and get a prescription rather than go to the store and get medicine off the shelf.
This could mean that billions will be wasted on the additional costs for prescription drugs in instances when OTC medicines could be just as safe and effective at treating the illness. A 2005 study in the American Journal of Managed Care found that the Food and Drug Administration’s clearing of antihistamines such as loratadine (Claritin) for over-the-counter sale saves about $4 billion a year in health care costs. Ironically, the liberals and Democrats who normally rail against big pharmaceutical companies are now creating a huge windfall the firms that make expensive prescription drugs by penalizing users of OTC medicines.
March 24, 2010 at 2:37 PM #531080ParticipantAnother take on the “Medicine Cabinet Tax”:
And this tax change will almost certainly cost the health care system billions more dollars in unnecessary spending both to the government and private insurance plans. The Joint Committee on Taxation estimates that the tax hike will bring in $5 billion in revenues over ten years – itself a drop in the bucket when compared to the bill’s new trillion-dollar entitlement – but that estimate doesn’t take into account behavioral changes as a direct result of this provision.
OTC drugs are much cheaper those available for prescription, but they could now be more expensive to individual consumers given that prescription drugs would still be eligible for favored treatment in the tax plans, and that insurance companies would be mandated to cover many of them. Consequently, any time a consumer has the slightest headache, the financial incentive would often be to see a doctor and get a prescription rather than go to the store and get medicine off the shelf.
This could mean that billions will be wasted on the additional costs for prescription drugs in instances when OTC medicines could be just as safe and effective at treating the illness. A 2005 study in the American Journal of Managed Care found that the Food and Drug Administration’s clearing of antihistamines such as loratadine (Claritin) for over-the-counter sale saves about $4 billion a year in health care costs. Ironically, the liberals and Democrats who normally rail against big pharmaceutical companies are now creating a huge windfall the firms that make expensive prescription drugs by penalizing users of OTC medicines.
March 24, 2010 at 2:37 PM #531178ParticipantAnother take on the “Medicine Cabinet Tax”:
And this tax change will almost certainly cost the health care system billions more dollars in unnecessary spending both to the government and private insurance plans. The Joint Committee on Taxation estimates that the tax hike will bring in $5 billion in revenues over ten years – itself a drop in the bucket when compared to the bill’s new trillion-dollar entitlement – but that estimate doesn’t take into account behavioral changes as a direct result of this provision.
OTC drugs are much cheaper those available for prescription, but they could now be more expensive to individual consumers given that prescription drugs would still be eligible for favored treatment in the tax plans, and that insurance companies would be mandated to cover many of them. Consequently, any time a consumer has the slightest headache, the financial incentive would often be to see a doctor and get a prescription rather than go to the store and get medicine off the shelf.
This could mean that billions will be wasted on the additional costs for prescription drugs in instances when OTC medicines could be just as safe and effective at treating the illness. A 2005 study in the American Journal of Managed Care found that the Food and Drug Administration’s clearing of antihistamines such as loratadine (Claritin) for over-the-counter sale saves about $4 billion a year in health care costs. Ironically, the liberals and Democrats who normally rail against big pharmaceutical companies are now creating a huge windfall the firms that make expensive prescription drugs by penalizing users of OTC medicines.
March 24, 2010 at 2:37 PM #531437ParticipantAnother take on the “Medicine Cabinet Tax”:
And this tax change will almost certainly cost the health care system billions more dollars in unnecessary spending both to the government and private insurance plans. The Joint Committee on Taxation estimates that the tax hike will bring in $5 billion in revenues over ten years – itself a drop in the bucket when compared to the bill’s new trillion-dollar entitlement – but that estimate doesn’t take into account behavioral changes as a direct result of this provision.
OTC drugs are much cheaper those available for prescription, but they could now be more expensive to individual consumers given that prescription drugs would still be eligible for favored treatment in the tax plans, and that insurance companies would be mandated to cover many of them. Consequently, any time a consumer has the slightest headache, the financial incentive would often be to see a doctor and get a prescription rather than go to the store and get medicine off the shelf.
This could mean that billions will be wasted on the additional costs for prescription drugs in instances when OTC medicines could be just as safe and effective at treating the illness. A 2005 study in the American Journal of Managed Care found that the Food and Drug Administration’s clearing of antihistamines such as loratadine (Claritin) for over-the-counter sale saves about $4 billion a year in health care costs. Ironically, the liberals and Democrats who normally rail against big pharmaceutical companies are now creating a huge windfall the firms that make expensive prescription drugs by penalizing users of OTC medicines.
March 24, 2010 at 2:53 PM #530521briansd1
Guest[quote=ucodegen] The over-the-counter drug is both safer and keeps the clotting factor of the blood more stable.[/quote]
I don’t see the problem with people buying aspirin and OTC medication using after tax dollars, just like they pay for other everyday household expenditures.
Aspirin can be purchased for $2 at walmart. That’s lower than the copay on prescription medication so the patient will save money when choosing OTC vs. prescription.
March 24, 2010 at 2:53 PM #530649Guest[quote=ucodegen] The over-the-counter drug is both safer and keeps the clotting factor of the blood more stable.[/quote]
I don’t see the problem with people buying aspirin and OTC medication using after tax dollars, just like they pay for other everyday household expenditures.
Aspirin can be purchased for $2 at walmart. That’s lower than the copay on prescription medication so the patient will save money when choosing OTC vs. prescription.
March 24, 2010 at 2:53 PM #531100Guest[quote=ucodegen] The over-the-counter drug is both safer and keeps the clotting factor of the blood more stable.[/quote]
I don’t see the problem with people buying aspirin and OTC medication using after tax dollars, just like they pay for other everyday household expenditures.
Aspirin can be purchased for $2 at walmart. That’s lower than the copay on prescription medication so the patient will save money when choosing OTC vs. prescription.
March 24, 2010 at 2:53 PM #531198Guest[quote=ucodegen] The over-the-counter drug is both safer and keeps the clotting factor of the blood more stable.[/quote]
I don’t see the problem with people buying aspirin and OTC medication using after tax dollars, just like they pay for other everyday household expenditures.
Aspirin can be purchased for $2 at walmart. That’s lower than the copay on prescription medication so the patient will save money when choosing OTC vs. prescription.
March 24, 2010 at 2:53 PM #531457Guest[quote=ucodegen] The over-the-counter drug is both safer and keeps the clotting factor of the blood more stable.[/quote]
I don’t see the problem with people buying aspirin and OTC medication using after tax dollars, just like they pay for other everyday household expenditures.
Aspirin can be purchased for $2 at walmart. That’s lower than the copay on prescription medication so the patient will save money when choosing OTC vs. prescription.
March 24, 2010 at 2:58 PM #530511
CoronitaParticipantActually, for those of those concerned about not being able to get a FSA/HSA re-imbursement for OTC drugs..It’s simple (though not the most cost-effective for the system)…..Just go see your doctor, and ask for a prescription form of the OTC drug…
For example,
*Instead of getting Claritin OTC ask your doctor to prescribe Clarinex.
*Instead of paying out of pocket for things like Aspirin/pain relieve, get your doctor to prescribe you the prescription form.
*Need a fiber laxative. Get your doctor to prescribe one too.
*Need vitamins, get your doctor to prescribe your those too (for women, get the prenatal prescription ones)…Ironically, all this does is drive up cost in the system…Hope it was worth it.
Whoops. Meadandale, you beat me to it…
You know, folks that’s been around medicine coverage already know this…Out of pocket expenses have always been cheaper getting prescription form in large quantity versus OTC. Even more so when/if those FSA/HSA kick in.I guess the bigger issue is technical folks who wear contacts will need to get a prescription form of that too…Because all those cleaning solutions are OTC and won’t be eligible too…Lol….
March 24, 2010 at 2:58 PM #530639CoronitaParticipantActually, for those of those concerned about not being able to get a FSA/HSA re-imbursement for OTC drugs..It’s simple (though not the most cost-effective for the system)…..Just go see your doctor, and ask for a prescription form of the OTC drug…
For example,
*Instead of getting Claritin OTC ask your doctor to prescribe Clarinex.
*Instead of paying out of pocket for things like Aspirin/pain relieve, get your doctor to prescribe you the prescription form.
*Need a fiber laxative. Get your doctor to prescribe one too.
*Need vitamins, get your doctor to prescribe your those too (for women, get the prenatal prescription ones)…Ironically, all this does is drive up cost in the system…Hope it was worth it.
Whoops. Meadandale, you beat me to it…
You know, folks that’s been around medicine coverage already know this…Out of pocket expenses have always been cheaper getting prescription form in large quantity versus OTC. Even more so when/if those FSA/HSA kick in.I guess the bigger issue is technical folks who wear contacts will need to get a prescription form of that too…Because all those cleaning solutions are OTC and won’t be eligible too…Lol….
March 24, 2010 at 2:58 PM #531090CoronitaParticipantActually, for those of those concerned about not being able to get a FSA/HSA re-imbursement for OTC drugs..It’s simple (though not the most cost-effective for the system)…..Just go see your doctor, and ask for a prescription form of the OTC drug…
For example,
*Instead of getting Claritin OTC ask your doctor to prescribe Clarinex.
*Instead of paying out of pocket for things like Aspirin/pain relieve, get your doctor to prescribe you the prescription form.
*Need a fiber laxative. Get your doctor to prescribe one too.
*Need vitamins, get your doctor to prescribe your those too (for women, get the prenatal prescription ones)…Ironically, all this does is drive up cost in the system…Hope it was worth it.
Whoops. Meadandale, you beat me to it…
You know, folks that’s been around medicine coverage already know this…Out of pocket expenses have always been cheaper getting prescription form in large quantity versus OTC. Even more so when/if those FSA/HSA kick in.I guess the bigger issue is technical folks who wear contacts will need to get a prescription form of that too…Because all those cleaning solutions are OTC and won’t be eligible too…Lol….
March 24, 2010 at 2:58 PM #531188CoronitaParticipantActually, for those of those concerned about not being able to get a FSA/HSA re-imbursement for OTC drugs..It’s simple (though not the most cost-effective for the system)…..Just go see your doctor, and ask for a prescription form of the OTC drug…
For example,
*Instead of getting Claritin OTC ask your doctor to prescribe Clarinex.
*Instead of paying out of pocket for things like Aspirin/pain relieve, get your doctor to prescribe you the prescription form.
*Need a fiber laxative. Get your doctor to prescribe one too.
*Need vitamins, get your doctor to prescribe your those too (for women, get the prenatal prescription ones)…Ironically, all this does is drive up cost in the system…Hope it was worth it.
Whoops. Meadandale, you beat me to it…
You know, folks that’s been around medicine coverage already know this…Out of pocket expenses have always been cheaper getting prescription form in large quantity versus OTC. Even more so when/if those FSA/HSA kick in.I guess the bigger issue is technical folks who wear contacts will need to get a prescription form of that too…Because all those cleaning solutions are OTC and won’t be eligible too…Lol….
-
AuthorPosts
- You must be logged in to reply to this topic.