Repeals arbitrary limitations on FSAs & HSAs including $2500 Cap & Mandatory Prescription for Over-the-Counter Meds
Texas Insider Report: Washington D.C. U.S. Senator Kay Bailey Hutchison (R-Texas) introduced The Patients Freedom to Choose Act a bill that would repeal two provisions in the Obama health care law that limit a patients choice in how to use consumer-directed health savings plans.
Rep. Erik Paulsen (MN-03) introduced companion legislation in the House of Representatives.
Under the health law the federal government is stifling patients flexibility and freedom to use health benefit accounts that have helped make care more affordable for tens of millions Americans" said Sen. Hutchison. Our bill strikes these arbitrary limitations and puts patients back in charge of how and when theyll use HSA and FSA benefits."
One of the many flaws of the new health care law is the added restrictions placed on hardworking Americans who rely on consumer-directed benefit plans" said Rep. Paulsen. Health Savings and Flexible Spending Accounts are critical components to giving the American people the power to choose whats best for them. Instead of limiting options as is happening under the new healthcare law we should be empowering patients by giving them increased access to affordable quality care."
On January 1 2011 a provision in the health care law took effect prohibiting individuals from using funds from either Health Savings Accounts (HSAs) or Flexible Spending Accounts (FSAs) to purchase over-the-counter medication unless they have a prescription from their doctor. In addition starting in 2013 the Obama health care law institutes a $2500 federal cap for all FSA contributions. Over 80 percent of all large employers that offer an FSA to their employees include a limit that is over this $2500 threshold.
Sen. Hutchisons legislation repeals the arbitrary cap on FSA contributions by striking the $2500 restriction. It also repeals the provision that requires patients using HSAs or FSAs to have a prescription from their doctor before they purchase over-the-counter medication.
HSAs and FSAs are innovative and popular health benefits that both large and small employers offer to their employees. These accounts allow individuals to set aside a certain amount of money each year on a pre-tax basis in order to pay for various health care expenses. Because employee contributions are made before they are taxed these accounts are another way to ease Americans growing tax burden. Americas Health Insurance Plans recently released a report that shows over 10 million Americans now are enrolled in HSAs. In addition over 35 million people have FSAs and 85 percent of all large employers (those with over 500 employees) offer them as a benefit to their employees.
Before the health care law was enacted there was no federal cap that an employer had to comply with in order to offer an FSA to its employees. Consequently the median limit on FSA benefits offered by employers is $4500. Federal employees can contribute up to $5000 to their FSAs and state employees in 46 states including Texas have FSA contribution limits set at $3000 or more.
The bill is cosponsored by Sens. Richard Burr (R-N.C.) Tom Coburn (R-Okla.) Thad Cochran (R-Miss.) Susan Collins (R-Maine) James Inhofe (R-Okla.) James Risch (R-Idaho) and Roger Wicker (R-Miss.). Sen. Hutchison introduced similar legislation in the 111th Congress.
Repeals arbitrary limitations on FSAs & HSAs including $2500 Cap & Mandatory Prescription for Over-the-Counter Meds
Texas Insider Report: Washington D.C. U.S. Senator Kay Bailey Hutchison (R-Texas) introduced The Patients Freedom to Choose Act a bill that would repeal two provisions in the Obama health care law that limit a patients choice in how to use consumer-directed health savings plans.
Rep. Erik Paulsen (MN-03) introduced companion legislation in the House of Representatives.
Under the health law the federal government is stifling patients flexibility and freedom to use health benefit accounts that have helped make care more affordable for tens of millions Americans" said Sen. Hutchison. Our bill strikes these arbitrary limitations and puts patients back in charge of how and when theyll use HSA and FSA benefits."
One of the many flaws of the new health care law is the added restrictions placed on hardworking Americans who rely on consumer-directed benefit plans" said Rep. Paulsen. Health Savings and Flexible Spending Accounts are critical components to giving the American people the power to choose whats best for them. Instead of limiting options as is happening under the new healthcare law we should be empowering patients by giving them increased access to affordable quality care."
On January 1 2011 a provision in the health care law took effect prohibiting individuals from using funds from either Health Savings Accounts (HSAs) or Flexible Spending Accounts (FSAs) to purchase over-the-counter medication unless they have a prescription from their doctor. In addition starting in 2013 the Obama health care law institutes a $2500 federal cap for all FSA contributions. Over 80 percent of all large employers that offer an FSA to their employees include a limit that is over this $2500 threshold.
Sen. Hutchisons legislation repeals the arbitrary cap on FSA contributions by striking the $2500 restriction. It also repeals the provision that requires patients using HSAs or FSAs to have a prescription from their doctor before they purchase over-the-counter medication.
HSAs and FSAs are innovative and popular health benefits that both large and small employers offer to their employees. These accounts allow individuals to set aside a certain amount of money each year on a pre-tax basis in order to pay for various health care expenses. Because employee contributions are made before they are taxed these accounts are another way to ease Americans growing tax burden. Americas Health Insurance Plans recently released a report that shows over 10 million Americans now are enrolled in HSAs. In addition over 35 million people have FSAs and 85 percent of all large employers (those with over 500 employees) offer them as a benefit to their employees.
Before the health care law was enacted there was no federal cap that an employer had to comply with in order to offer an FSA to its employees. Consequently the median limit on FSA benefits offered by employers is $4500. Federal employees can contribute up to $5000 to their FSAs and state employees in 46 states including Texas have FSA contribution limits set at $3000 or more.
The bill is cosponsored by Sens. Richard Burr (R-N.C.) Tom Coburn (R-Okla.) Thad Cochran (R-Miss.) Susan Collins (R-Maine) James Inhofe (R-Okla.) James Risch (R-Idaho) and Roger Wicker (R-Miss.). Sen. Hutchison introduced similar legislation in the 111th Congress.
