The Employers Council on Flexible Compensation is on a crusade to save the flexible spending account -- a tax-advantaged benefit, which the council asserts is threatened by the government's health care reform plan.
The council points to recent legislation approved by the House Energy and Commerce Committee that includes a ban on using money set aside in FSAs to buy inexpensive over-the-counter medications such as aspirin and allergy medications, thereby forcing many to seek out higher-cost prescription medications.
The Senate Committee on Finance introduced legislation that reportedly includes various caps on the amount of money that individuals can contribute to their FSAs each year on a tax advantaged basis, according to the council. This follows a report issued earlier in the year by the Joint Committee on Taxation that projected repealing the tax exclusion for FSAs, health savings accounts and health reimbursement arrangements would save roughly $68.6 billion over 10 years.
"It would be disastrous if the millions of Americans who rely on flexible spending accounts to manage their health care costs become the unintended victims of health care reform," says Jody Dietel, spokeswoman for Save Flexible Spending Plans and compliance officer at WageWorks, a benefits company based in San Mateo, Calif.
"An elimination or cap on flexible spending accounts will force plan participants to pay higher taxes and incur higher health care costs at a time when many can least afford it. Sadly, a change to the structure of flexible spending accounts will disproportionately affect those who need the program the most -- individuals and families battling chronic conditions that require ongoing care and medical supplies."
The nonprofit ECFC established a Web site, www.savemyflexplan.org, so the public can voice opinion to lawmakers.
"We are actively working on Capitol Hill to promote the idea that health care reform should not be accomplished at the expense of the hardworking Americans who rely on FSAs to manage their health care costs," says Dennis Triplett, chairman of the ECFC's Board of Directors and CEO of UMB Bank Healthcare Services. "It's critical for everyone interested in protecting FSAs to get involved and contact their members of Congress on the issue."
