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Amendments Encourage Senate Finance Committee to Protect Flexible Spending Accounts
Date:9/22/2009

Committee members included proposals to increase or remove the originally planned $2,000 contribution cap, exclude FSAs from the excise tax on high cost health insurance plans and clarify the reimbursement role of FSAs for over-the-counter medications.

"We are encouraged that eight Senators from both sides of the aisle filed amendments to protect a benefit that has helped millions of hardworking Americans manage and hold down their health care costs," said Jackson. "At a minimum, amendments filed that would increase the cap on FSA contributions, including those by Senators Schumer and Snowe, represent a step in the right direction. Without a higher cap, Congress could force plan participants, including many fighting chronic illnesses, to forgo necessary medical treatment, prescriptions and supplies for financial reasons, resulting in a deterioration of health and an increase in hospitalizations and overall health care system costs."

About Flexible Spending Accounts

Flexible spending accounts (FSAs) are voluntary, account-based plans that enable millions of Americans to use pre-tax dollars to pay for eligible out-of-pocket health care expenses like prescription drug co-pays, vision and dental costs, office visits and medical supplies. Most FSA participants are middle income, earning approximately $55,000 annually. Currently, limits on contributions to FSAs are set by individual employers.

In July, the House Ways and Means Committee approved health care reform legislation that includes a ban on using money set aside in FSAs to buy over-the-counter medications such as aspirin and allergy medications.

About Save Flexible Spending Plans

Save Flexible Spending Plans is a national grassroots advocacy organization protect against the restricted use of flexible spending accounts in health care reform efforts. The campaign is sponsored by
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SOURCE Save Flexible Spending Plans
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