U.S. Rep. Steve Stivers (R-OH) introduced legislation on Friday that would give families new opportunities and flexibility in planning and paying for the costs of health care.
The Responsible Additions and Increases to Sustain Employee (RAISE) Health Benefits Act of 2015, co-sponsored by Rep. Michelle Lujan-Grisham (D-NM), would accomplish this by modifying the rules related to the use of flexible spending accounts (FSA).
“Not all families are the same,” Stivers said. “It just makes sense that a family with four children should have a higher FSA limit than a single adult. Health care costs, such as braces, can be expensive. My legislation would make it easier for families to address the financial challenges of paying for these types of health care costs.”
FSAs are useful tools that allow families to set aside money to pay for health care services and items that are not covered by insurance, such as doctor co-payments, prescription drugs, medical supplies, and vision and dental services. Money not spent in a calendar year, however, cannot be carried over to the next year, making it very difficult to save for larger-than-normal medical expenses. Additionally, the Affordable Care Act limited FSA contributions to a maximum of $2,500 per year. The RAISE Act would double that limit to $5,000 immediately and permit an additional $500 per dependent. This would give families of any size the opportunity to save more money for use toward medical costs.