Senate Legislation Poses New Threat to Flexible Spending Accounts - Contact Your Elected Representatives to Make Your Voice Heard

9/17/2009

On September 16, 2009, Senate Finance Committee Chairman Max Baucus (D-MT) made it clear that he intends to fund health care reform by restricting access and reducing the value of your flexible spending account (FSA). We need your help to help protect FSAs.

Specifically, Sen. Baucus proposes:

Imposing a $2,500 cap on contributions to FSAs which will force many to pay higher taxes and health care costs. This includes individuals and families battling chronic conditions that rely on their FSAs to cover out-of-pocket expenses for ongoing care and medical supplies.

Lumping FSAs together with major medical plans and including the benefit in an excise tax on high-cost insurance plans. Ultimately, this could discourage some employers from offering the benefit.

Limiting the use of FSAs for over-the-counter medications unless you have a doctor's prescription

At the same time, we are fighting back a proposal approved by the House Ways and Means Committee that bans using money set aside in FSAs to buy over-the-counter medications such as aspirin and allergy medications.

Even if you've already emailed and called your elected representatives, we encourage you go to WWW.SAVEMYFLEXPLAN.ORG to send another email and make another phone call on the new pending proposals.

The threat to FSAs is real and your voice will make a difference.

Thanks in advance for your support.

Categories: FSA