« Consumer Reports Poll: 66 Percent of Black Friday Weekend Shoppers Buying for Themselves | Main | New Report Finds Only 25 Percent of Adults Aged 50-64 Get Recommended Preventive Screenings »
Senate Health Bill Would Significantly Curtail Flexible Spending Accounts
November 19, 2009Following the introduction of the Patient Protection and Affordable Care Act by Senate Majority Leader Harry Reid (D-NV), Joe Jackson, chairman of Save Flexible Spending Plans and CEO of WageWorks Inc., a San Mateo, CA-based benefits provider issued the following statement: "It is disappointing that the Senate is determined to fund health care reform by restricting access to flexible spending accounts (FSAs), a valuable benefit relied upon by more than 35 million Americans to help hold down health care costs. Severely curtailing the use of FSAs will not only force participants to pay more in health care costs, it flies in the face of President Obama's pledge to not raise taxes on the middle class. Especially damaging to plan participants is the Senate bill's failure to index an already unreasonably low $2,500 cap on FSA contributions. Failing to adjust the cap for inflation will cause the value of a $2,500 FSA to plummet to less than half that amount within a decade. Full release.