Flexible Spending Accounts Help Consumers Afford Health Care

Flexible spending accounts (FSAs) allow participants to contribute pre-tax dollars from their paychecks to pay for out-of-pocket health care expenses not covered by insurance
Legislation previously approved by the Senate and House of Representatives would have restricted access to FSAs to help fund a small portion of health care reform efforts
Providing quality, affordable care for all Americans should not be at the expense of hard-working Americans who rely on FSAs to manage their health care costs

Limits to FSAs Would Increase Health Care Costs

Health care reform legislation previously approved by the Senate and House included provisions that would have drastically restricted the use of flexible spending accounts (FSAs) and forced many plan participants to pay higher taxes and health care costs
A change to the structure of FSAs would disproportionately affect those that need the program the most – individuals and families battling chronic conditions that rely on their FSAs to cover costs for ongoing care and medical supplies
Overall health care system costs may increase with a change to the structure of FSAs because some FSA participants, for financial reasons, would forego getting necessary treatment, prescriptions and supplies, resulting in deterioration in health and an increase in hospitalizations

The goal of health care reform is to provide quality, affordable care for all Americans, a goal that FSAs are already fulfilling. FSAs are part of the solution, not part of the problem

Pending proposals in Congress run contrary to President Obama’s pledge to allow Americans who are happy with their health care coverage to keep it as is

President Obama and Congress should protect FSAs from becoming the unintended victim of health care reform and allow the program to continue to serve as a safety-net and solution for millions of Americans to cover their out-of-pocket health care expenses