He is now behind. He won in the district by less than a fifth of a percent in a fluke victory in 2008. I think he will lose and he will deserve that loss.

BAIER: Last word, Mara -- it was interesting to see the vice president campaigning down there for Grayson.

LIASSON: At this point I don't think the White House is going to be very particular. Any warm breathing Democrat is welcome in the United States House of Representatives.

BAIER: Logon to our homepage at FOXnews.com/Special Report. Get ready for tonight's online show at 7:00 eastern. Next up, how the new health care law impacts your HSA or FSA. We'll explain.  

(COMMERCIAL BREAK)

(BEGIN VIDEO CLIP)

ROBERT ZIRKELBACH, AMERICA'S HEALTH INSURANCE PLANS: If I am currently taking Claritin for my allergies, I can pull out my debit card with my health savings account and go to any drugstore and purchase that over-the-counter.

But now under this change, I am going to have to take time out of my work day, schedule an appointment with my physician to go in there and get a prescription if I want to be able to use my health savings account to be able to pay for the medication I'm taking every single day.

CHRIS KRESE, NATIONAL ASSOCIATION OF CHAIN DRUG STORES: We're talking about 15,000 over-the-counter products that now are subject to this new policy that now require a prescription.

(END VIDEO CLIP)

BAIER: This is all in the health care law -- 45 million Americans are now getting notices that the pretax money they set aside for flexible savings spending or health savings accounts, you can no longer be used for over-the-counter drugs. You have to get a prescription if you are going to use that money that you have set aside pretax. This is stuff like Tylenol, cold and cough medicines, allergy medications, many others.

What does this mean in the big picture? We are back with the panel.  Charles?

KRAUTHAMMER: Two things. It's an example of the insanity of this bill. In part, the consequences here are unintended. Just adding a layer of complexity which is going to make it hard for anybody to use Tylenol.  You have to go to a doctor and get an appointment which is really nuts, adding another level of complexity.

BAIER: Because the bill needed financing to pay for it or at least show the deficit was not going to be according to the CBO.

KRAUTHAMMER: It had to say it would reduce cost. It does this crazy regulation.

But I think it's not unintended. This is the use of regulation to kill health savings accounts which are the one element, the one example of consumer sovereignty in health care. And that's what liberals want to eradicate. They want a government-run system directly or indirectly.  Health savings accounts are an affront.

What you do is you say to anybody holding it, if you have got arthritis and you want to get Aleve, you are going to have to go to a doctor, waste half a day, pay for a visit, which nobody is going to do.  It's a way to kill the private sector by attrition in the same way that employers will be dropping health care because of the huge increase in costs as a result of Obama care, and the fingerprints of the government will not be seen.

BAIER: Starts January 1st.

LIASSON: Far be it from me to argue with Charles on anything medical.  However, they only will have to go to their doctor to get a prescription for Aleve if they want other taxpayers to subsidize their purchase of Aleve. That's what this is. For people -- I think for people who thought.

BAIER: Wait a second, if you put money in your FSA.

LIASSON: That's pretax money. I have a depend --

BAIER: If you're taking the program off the table, if you are trying to get the tax money from that, it's essentially making the FSA and HSA ineffective.

LIASSON: Yes. But on the other hand, if you or someone, and I agree with all the economists who said that employer-provided health care should not be subsidized by other taxpayers who have to go out on the market and buy their own health care, then neither should this.

KRAUTHAMMER: Obama care is the greatest adding of subsidies health care in the history of the United States. And you’re begrudging a plan which allows individuals sovereignty and has a minor saving on the part of the consumer in a tax saving?

That's completely incoherent. Either you say no subsidies or not.  But this is a minor tax break to encourage people to use their own money and essentially self-insure.

HAYES: It's more than a semantic difference. It's not ultimately a subsidy of anybody. This is not fundamentally the government's money.  This is your money from the beginning. What you are opting to do is not pay tax dollars on it, I mean, from the beginning. You are not subsidizing anybody.

LIASSON: Wait a minute, the government is allowing you to do that.  Otherwise you would have to pay taxes on it?

HAYES: The government doesn't allow anybody to do anything in this case. I think it's fundamentally your money at first. If you don't want to do it, you can opt out of paying the taxes, that's what you do.

The bigger picture, I think here is quite simple. The president throughout the entire debate promised this was going to reduce costs and make things simpler. This is clear, another example that that is not the case. It wasn't the case.

And I think what you are likely to see, like we’ve seen with the mini-meds and like we’ve seen with all these other things that were predictable but ignored when they were predicted the HHS, Department of Health and Human Services having to grant exceptions and waivers, which once again, puts all of the power of the one sixth of the U.S. economy in the hands of the Secretary of Health and Human Services who’s going to be making these decisions based on regulation.  This is one regulation out of 2500 pages there are going to be dozens of others.

LIASSON: I’ll take of my tax policy hat for a minute and get back to analyzing the politics of this, which is the problem for the administration is the benefits that people are supposed to like, like keeping your kids on until they are 26 and getting rebate checks for prescription drugs, are not happening fast enough to counteract these other changes that are going to be perceived as inconveniences.

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