Other Health Care Reform Revenue Sources

Health care reform has several smaller provisions to raise revenue to help pay for the Patient Protection and Affordable Care Act. Provisions that may affect individuals include:

• Limiting to $2,500 the contribution employees may make in accounts for so-called “cafeteria/flex” plans, starting in 2013. Previously, contributions had not been limited by law, and were often set at $5,000. This will reduce the amount of money people can set aside on a pre-tax basis, and raise an estimated $13 billion.
• Making over-the-counter drugs ineligible as a medical expense paid through any employer-provided coverage or any of the health savings account plans. This started January 1, 2011, and is expected to raise $1.4 billion.