Benefits Buzz

FSA Cash-Out Bill: If Passed, May Skyrocket Participation

Posted on May 21st, 2013

Last week, Senator Ben Cardin (D-MD) and Senator Mike Enzi (R-WY) introduced S 9.66, the Medical FSA Improvement Act, to eliminate the Use-It or Lose-It rule by allowing individuals to cash-out unused Flexible Spending Account (FSA) balances with the amounts treated as taxable income.

View the legislative language >>

What could this mean for Americans? The change could increase participation in Healthcare FSAs, which would benefit both employees and employers. There could be money in more pockets and a sigh of relief because an overestimated FSA election would not be as much of a shock to the participant. If the bill is passed, those who are now discouraged from using their company's FSA because of the Use-It or Lose-It rule may come out of the woodwork next enrollment season.

How can this bill be supported? The following contact information has been provided to pass on to your constituent senators' offices if you wish to encourage them to co-sponsor S. 966. Offices interested in co-sponsoring can contact Priscilla Ross with Senator Cardin (202-224-4524) or Riley Swinehart with Senator Enzi (202-224-3424).

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