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:10/13/2017)... ... 2017 , ... PurhealthRX , a leading Health and Nutrition Company, is ... to full spectrum CBD oil will revolutionize the rapidly growing CBD market by reducing ... easily incorporated into liquid products, while reducing costs to end users. , The team ...
(Date:10/13/2017)... ... October 13, 2017 , ... Many families have long-term ... long-term care insurance companies have a waiver for care if the client has a ... when the family pays for care, is often waived, so the benefits from their ...
(Date:10/13/2017)... ... October 13, 2017 , ... Yisrayl Hawkins, Pastor and Overseer at The House ... most popular and least understood books in the Holy Scriptures, Revelation. The Book of ... baffled scholars for centuries. Many have tossed it off as mere rubbish, but Yisrayl ...
(Date:10/13/2017)... ... ... On The Brink”: the Christian history of the United States and the loss of ... William Nowers. Captain Nowers and his wife, Millie, have six children, ten grandchildren, ... Navy. Following his career as a naval aviator and carrier pilot, he spent ...
(Date:10/12/2017)... ... October 12, 2017 , ... The company has ... today’s consumer and regulatory authorities worldwide. From Children’s to Adults 50+, every formula ... the highest standard. , These products are also: Gluten Free, Non-GMO, Vegan, ...
Breaking Medicine News(10 mins):
(Date:10/11/2017)... 2017  True Health, a leader in integrated ... during National Breast Cancer Awareness month to educate ... Research recently published ... more than 10 million American women are at ... or BRCA2 and have not had testing. These mutations ...
(Date:10/10/2017)... 10, 2017   West Pharmaceutical Services, Inc. ... injectable drug administration, today shared the results of a ... improving the intradermal administration of polio vaccines. The study ... in May 2017 by Dr. Ondrej Mach , ... Health Organization (WHO), and recently published in the journal ...
(Date:10/4/2017)... SEOUL, South Korea , Oct. 4, 2017 /PRNewswire/ ... launched its next-generation CPR training aide "cprCUBE" on Kickstarter. ... of chest compression during cardiac arrests with better efficiency ... patient-mannequins. It also offers real-time feedback on efficacy of ... The crowdfunding campaign has a goal to raise ...
Breaking Medicine Technology: