Expanding Healthcare Options
for American Families
The freedom to choose is an essential part of the American way of life. Few decisions are more important than those we make about health care for ourselves and our families.
Last year, Congressman Ed Royce (R-CA) and I introduced H.R. 63 to bring fairness and affordability to health care coverage for millions of American families. The legislation would make important changes to the Flexible Spending Account (FSA) program, an employer-established benefit program created by Congress during the 1970s.
Designed to give employees more power over the management of their health care while expanding choice, FSAs are tax-exempt accounts that can be used for certain medical expenses like co-pays, deductibles and non-covered prescription drugs.
Yet, there is a catch. A use-it-or-lose-it rule prevents employees from retaining any funds in their account at the end of the year. In fact, at the end of the year the remaining balance is forfeited. It’s simply not fair to penalize conscientious consumers who set aside their own money for health care expenses.
The current rules prevent working Americans from taking full advantage of a program that could significantly ease the burden of health care expenses. H.R. 63 would return the year-end balance to the employee, encourage companies and employees to participate in the FSA program and discourage wasteful health care spending.
As America’s economy recovers, there are those who face temporary unemployment. By allowing a portion of FSA funds to carry over from year to year, we can give Americans a reserve fund to cover health insurance premiums during tough times.
This year the President has proposed a similar solution. In the budget he submitted to Congress, the President would allow employees to rollover up to $500 per year in an FSA. To those who’ve recently lost a job or working families with high medical expenses, the FSA provides much-needed assistance. The reform proposed under H.R. 63 and those included in the President’s budget will make the FSA a valuable health care option for working Americans and businesses.
While Flexible Spending Accounts are not a panacea for America’s health care needs, they are an important step toward ensuring that all working families have the security of health care they deserve.
