Enzi Introduces Medical FSA Improvement Act 2013
U.S. Senators Ben Cardin, (D-Md.) and Mike Enzi,( R-Wyo.), both members of the Senate Finance Committee, have introduced The Medical FSA Improvement Act of 2013. The bill would amend the Internal Revenue Code to allow employees who use health flexible spending arrangements (FSAs) to cash out any remaining balance in their account at the end of a plan year. This provision replaces current Internal Revenue Service policy in which any unspent FSA funds revert to the employer at the end of the plan year for activities related to the administration of the plan.
FSA’s allow employees to set aside pre-tax dollars to pay for out-of-pocket health care expenditures, including dental and vision services. Enzi said “ with the high cost of health care, we should be doing whatever we can to encourage people to be proactive and plan ahead, like putting money into a FSA for out-of-pocket costs.”