Congressmen Charles Boustany, R-La., and John Larson, D-Conn., introduced the Medical Flexible Spending Account Improvement Act, which would allow consumers to withdraw and pay taxes on any residual funds in their flexible spending accounts, rather than requiring them to surrender the balance to their employer, as outlined by current rules.

Save Flexible Spending Plans, an advocacy campaign that promotes FSAs, commended the bill's sponsors for focusing on the issue.

"As the price of health care continues to climb, FSAs help millions of working Americans manage and hold down their out-of-pocket costs," says Joe Jackson, chairman of Save Flexible Spending Plans and CEO of benefits provider WageWorks Inc. "Unfortunately, the 'use it or lose it' rule creates an unnecessary risk for FSA participants and a deterrent for non-participants. A change to this rule ensures that individuals will not be forced to use up or forfeit any remaining funds simply because their families' needs did not match their predicted annual health care expenses."