Navigation Links
Fight to Preserve Flexible Spending Accounts Moves to the House of Representatives
Date:10/14/2009

Cost Saving Benefit Faces Eventual Elimination Without Relief

WASHINGTON, Oct. 14 /PRNewswire-USNewswire/ -- Despite Speaker Nancy Pelosi's (D-Calif.) support of President Obama's pledge not to raise taxes on the middle class, the House of Representatives is now considering -- outside of the normal legislative process -- adopting provisions approved yesterday by the Senate Finance Committee that would drastically restrict the use of flexible spending accounts (FSAs) in order to help pay for health care reform. The restrictions, which include an unreasonably low cap on contributions to this tax-advantaged benefit that wouldn't adjust with inflation, would quickly de-value the benefit and possibly lead to its elimination, over time.

"This would be the season of broken promises if the House Democratic leadership plans to raise taxes on the middle-class by restricting the use of FSAs -- a benefit used by over 35 million working Americans to hold down their health care costs," said Joe Jackson, chairman of Save Flexible Spending Plans and CEO of WageWorks, a benefits company based in San Mateo, California. "Worse yet, the House would bypass the standard legislative process and abandon due diligence by including this ill-conceived policy in its health bill without the standard committee hearings or debate."

Provisions approved by the Senate Finance Committee now being considered in the House include a proposed $2,500 cap on FSA contributions that would not adjust with inflation. Failure to index the cap for inflation will cause the value of a $2,500 FSA contribution to plummet to $1,250 in just nine years.

"It doesn't make any sense that the House would want to pay for health care reform by overly restricting FSAs and raising taxes on millions of people, especially those who are the sickest," added Jackson. "FSAs are a lifeline for working Americans, often making the difference between staying afloat and going into debt over health care needs, and sometimes between getting necessary treatment and avoiding it altogether because of the cost. They enable participants to play an active role in managing their health care and should be preserved as a safety net for middle-class Americans struggling to afford rising health care costs."

In July, the House Ways and Means Committee also 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 Flexible Spending Accounts

Flexible spending accounts 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 Americans, earning approximately $55,000 annually. Currently, limits on contributions to FSAs are set by individual employers.

Individuals and families with chronic illnesses typically receive the most benefit from FSAs. They incur annual out-of-pocket expenses averaging $4,398 per year, the Robert Wood Johnson Foundation found -- well above the proposed limit. Approximately 44 percent of Americans have one or more chronic conditions.

About Save Flexible Spending Plans

Save Flexible Spending Plans is a national grassroots advocacy organization to protect against the restricted use of flexible spending accounts in health care reform efforts. The campaign is sponsored by the Employers Council on Flexible Compensation (ECFC), www.ecfc.org, a non-profit organization dedicated to the maintenance and expansion of private employee benefit programs on a tax-advantaged basis. To learn more, take action and read the personal stories of FSA participants, please visit www.savemyflexplan.org.

SOURCE Save Flexible Spending Plans


'/>"/>
SOURCE Save Flexible Spending Plans
Copyright©2009 PR Newswire.
All rights reserved

Related medicine news :

1. Cash for Gold USA Continues to Fight Against Breast Cancer During National Breast Cancer Month
2. New old drug fights colon cancer
3. New findings about brain proteins suggest possible way to fight Alzheimers
4. Pink Ribbon Bagel Returns to Fight for a Cure
5. Preventing Injuries In Firefighters Nationwide is New Research Focus for Top Sports Doc James Andrews, M.D. and Athletes' Performance
6. SinusWars LLC Launches a Successful and All Natural Alternative to Antibiotics in the Fight to Treat Chronic Sinusitis
7. Using Your Immune System to Fight Cancer
8. Preventing Injuries in Firefighters Nationwide is New Research Focus for Top Sports Doc James Andrews, M.D. and Athletes Performance
9. Insurance Industry Successful in Initial Fight Against Public Option; Public Feels Left Out
10. Anchor Bay Entertainment Joins Forces With Susan G. Komen for the Cure(R) in the Fight Against Breast Cancer
11. Ann Taylor Supports The Fight Against Breast Cancer
Post Your Comments:
*Name:
*Comment:
*Email:
(Date:1/21/2017)... ... January 21, 2017 , ... Pacifica Graduate ... the electrifying line-up of events for its annual meeting “Coming Home 2017,” an ... “Coming Home 2017” will be held on Friday January 27 through Sunday, ...
(Date:1/21/2017)... ... January 21, 2017 , ... ... medical office in Petaluma, located at 167 Lynch Creek Way. The Petaluma office ... SRO sports medicine and rehabilitation services and on-site x-ray services. Two multi-specialist ...
(Date:1/21/2017)... (PRWEB) , ... January 21, 2017 , ... ... by Austin, Texas Periodontist Dr. Dan Holtzclaw in media for its creos™ line ... two surgeries performed by Dr. Holtzclaw in which he utilizes creos™ allo.gain™ bone ...
(Date:1/20/2017)... Hagerstown, MD (PRWEB) , ... January 20, 2017 , ... ... people to donate items they no longer use or need, from clothes to couches ... up any unwanted items and take them to the nearest Goodwill donation center through ...
(Date:1/20/2017)... ... 20, 2017 , ... Source Vitál Apothecary, a skin and body care company ... the company had a successful visit to the 2017 ECRM Diet, Vitamin & Sports ... work in the nutritional, sports and health industries a chance to meet in private ...
Breaking Medicine News(10 mins):
(Date:1/20/2017)... Wells Specialty Pharmacy announces the acquisitions and merger ... Winter Park, Florida and Pharm-EZ Medical, ... have been consolidated into the 3796 Howell Branch Road Facility. ... that Chad Tomlinson , former Vice President of Operations, ... Mr. Tomlinson is a Graduate of Florida State University and ...
(Date:1/19/2017)... -- Germany Cataract Surgery Devices Market ... "Germany Cataract Surgery Devices Market Outlook to 2022", provides ... market. The report provides value, in millions of US ... market segements - Phacoemulsification Equipment and Ophthalmic Viscoelastic Devices ... distribution shares data for each of these market segements, ...
(Date:1/19/2017)... 2017 The Global Therapy Partnering Terms and ... partnering deals and agreements entered into by the world,s ... - Top deals by value - Deals listed by ... The report provides understanding and access to the ... leading healthcare companies. The report provides an analysis ...
Breaking Medicine Technology: