Tax Deduction for Self-Care Expenses

Scott MelvillePresident & CEOConsumer Healthcare Products Association

We are committed to promoting the role of OTC and Dietary Supplement products through science, education, and advocacy.

Serving the self-medication industry since 1881

Self-Treatment Saves Time and Money

Health Insurance Coverage in the U.S., 2010

Total: 305.2 Million

Medicare: 12%

Medicaid: 17%

Uninsured: 16%

Employer-Sponsored Insurance: 49%

Private: 5%

SOURCE: KCMU/Urban Institute analysis of 2011 ASEC Supplement to the CPS.

Avg. Annual Health Insurance Premiums and Worker Contributions for Family Coverage, 2005-10

2005 2010

Employer Contribution Worker Contribution

$10,880

$13770

47 %$2713

$1,284 Worker Contribution Increase

Source: Kaiser/HRET Survey of Employer-Sponsored Health Benefits, 2005-2010.

National Health Expenditure and % of GDP, 1960-2009

19601970198019902000200120022003200420052006200720082009$0

$1,000

$1,500

$2,000

$2,500

$3,000

$ in Billions

Source: Centers for Medicare and Medicaid Services, Office of the Actuary, National Health Statistics Group

HSA vs. FSAHSA Health Savings Accounts

FSA Flexible Spending Arrangements

Overview A bank account to save and pay for medical expenses tax-free.

Pays for out-of-pocket expenses not covered by medical plan tax-free.

EligibilityMust accompany a high-deductible health insurance plan.

Eligibility is set by your employer.

Rollover/Portable? Yes No

Annual Contribution

• Single coverage limit: $3100• Family coverage limit: $6250

• No current limit• In 2013, limit will be $2500.

Examples of Eligible Medical Expenses• Bandages• Contact lenses• Insurance co-payments• Dentures• Diabetic monitors• Eyeglasses• Hearing aids• Insulin• Medical equipment

• Orthotics• Orthodontia• Prescription medicines• X-rays

Source: www.wageworks.com

FSA Participation By the Numbers

Source: According to the Employers Council on Flexible Compensation (ECFC), 2008

# of Participating Americans

35 Million

Annual Salary $55,000

Annual FSA Contribution $1386

Rev. Rul. 2003-102: Reimbursements of OTCs Are Excludable from Gross IncomeEffective Sept. 22, 2003

‘‘Self-insured medical reimbursement plans: This ruling holds that employer reimbursements of amounts paid by an employee to purchase nonprescription medicines and drugs are excludable from gross income under section 105(b) of the Code.’’

SEC. 9003 Distributions For Medicine Qualified Only for Prescribed Drug or InsulinEffective Jan. 1, 2011

‘‘Reimbursement for expenses incurred for a medicine or a drug shall be treated as a reimbursement for medical expenses only if such medicine or drug is a prescribed drug (determined without regard to whether such drug is available without a prescription) or is insulin.’’

2010 Healthcare Reform Law Intent vs. Reality

Intent of Law

Decrease Costs

Expand Access

Industry Imperative

The Value of OTC Medicine to the United States

7 Most Common Self-Treatable Conditions

AllergyAnalges

Anti-fungal

Cough/Cold

Medicated Skin

Lower GI

Upper GI

OTC Industry Value to Consumers

Access Trust

Empowerment Affordability

“This study shows how important over-the-counter medicines are for millions of

American families”

Source: Nobile Photo

Health Choices Coalition Members Aetna America’s Health

Insurance Plans American Academy of

Dermatology Association

American College of Physicians

American Medical Association

American Osteopathic Association

American Society for Association Executives

Bayer HealthCare Consumer Care

Blue Cross Blue Shield Association

Consumer Healthcare Products Association

CVS Caremark Food Marketing

Institute National Association of

Chain Drug Stores National Association of

Manufacturers National Community

Pharmacists Association

National Federation of Independent Business

National Grocers Association

Prime Therapeutics Retail Industry Leaders

Association Sjögren’s Syndrome

Foundation U.S. Chamber of

Commerce Wellpoint

House Ways and Means Committee FSA Hearing, April 25, 2012

Source: Nobile Photo

Gaining Momentum

Thank You

Contact Information:

202.429.9260melville@chpa-info.orgwww.chpa-info.org

Tax Deduction for Self-Care Expenses

Documents

CORPORATE INCOME TAX · The corporate income tax deduction for interest from affiliated corporations allows related companies to shift interest income and related expenses among members

11 Simple Tax Deduction Tips

ADVANCE TAX, TAX DEDUCTION AT SOURCE AND … · ADVANCE TAX, TDS AND INTRODUCTION TO TCS 9.3 Tax deduction at source Deduction of tax at source [Section 192 to 196] Certificate of

Business Deduction for Personal Living Expenses: A Uniform

THANK YOU FOR YOUR SUPPORT! · 2018-08-21 · MCLE Credit: Up to 6 hours, including ethics. Tax Deduction: An income tax deduction may be allowed for expenses of education including

Income Tax Deduction Table

Tax Reform White Paper 2017 - Pure Financial · deduction or they can itemize their deductions. Itemizing makes sense when your deductible expenses exceed the standard deduction

Tax Guide on the Deduction of Medical Expenses - MD Acc · TAX GUIDE ON THE DEDUCTION OF MEDICAL EXPENSES i Tax Guide on the Deduction of Medical Expenses Another helpful guide brought

The Effect of the R&D Expenses Tax Super Deduction Policy ...impact of theR&D expenses tax super deduction policy on R&D investment of 3,562 companiesthrough non-parametric match method

THE DEDUCTION OF FINANCING EXPENSES OTHER · PDF file4674538 v9 THE DEDUCTION OF FINANCING EXPENSES OTHER THAN INTEREST 20(1)(e) - Financing Expenses The purpose of paragraph 20(1)(e)

TAX DEDUCTION AT SOURCE

Tax Deduction

Deduction of Expenses for Moving Abroad

· Web viewThis bill allows a $2,000 tax deduction for expenses paid for a student to attend a home school, a $4,000 tax deduction for tuition, textbook and other fees, and school-related

IRAS e-Tax Guide · IRAS e-Tax Guide Income Tax: Tax Deduction for Expenses Incurred on ... drawing, print, calligraphy, mosaic, sculpture, pottery or art installation; or

TAX DEDUCTION AT SOURCE [TDS] - · PDF fileAssessment tax: Section 191 4 Index ... deduction at lower rates or no deduction at the time ... section no deduction of tax shall be made

Tax Deduction at Source & Section

B18 TAX INCENTIVES€¦ · These tax incentives appear in various forms, such as exemption on income, extra allowances on capital expenditure incurred, double deduction of expenses,

Lesson 12 Paying Your Taxes. Key Terms 1040EZ 1099INT 1099MISC FICA Gross Income Income Tax Standard Deduction Tax Audit Tax Deduction Tax Exemption Tax

Section 179 Tax Deduction