Senators introduce a bill to end use-it-or-lose-it for health FSAs

Senators are looking to end the days of buying unneeded medical supplies in order to avoid losing the funds in your health flexible spending account. U.S. Senators Ben Cardin (D-MD) and Mike Enzi (R-WY) introduced legislation that would allow workers to keep any unspent amounts in their flexible spending accounts.

Currently, employees can contribute to their health flexible spending arrangements (FSAs) on a pre-tax basis. Workers need to plan carefully as any unused amounts revert to the employer at the end of the plan year.

The Medical FSA Improvement Act of 2013 (S. 966) would allow workers to cash out any remaining amounts in their health FSAs at the end of a plan year instead of having those amounts go to their employers.

This bill would significantly impact company’s health FSAs if passed.

The bill is available here.

The press release issued by Senators Cardin and Enzi is available here.