U.S. Rep. Steve Stivers (R-OH) on March 11 sponsored bipartisan legislation that would provide the opportunity for responsible health savings to all American families by improving Flexible Spending Accounts (FSAs), which allow civilian workers to set aside money to pay for healthcare services and items not covered by insurance, such as doctor copayments, prescription drugs, medical supplies, or vision and dental services.
“As the global public health crisis continues, families need the flexibility to make the best decisions for their family’s health care spending,” Rep. Stivers said. “Now, more than ever, this commonsense legislation is just the right thing to do.”
Rep. Stivers introduced the Responsible Additions and Increases to Sustain Employee (RAISE) Health Benefits Act of 2021, H.R. 1860, with original cosponsor U.S. Rep. Vicente Gonzalez (D-TX), which would allow funds in an FSA to permanently roll over into 2021, according to information provided by Rep. Stivers’ office.
“Planning for health care has been a challenge for too many, and we need to help families of all sizes better plan for unexpected medical costs and out-of-pocket expenses,” said Rep. Stivers. “By improving FSAs, this legislation will offer families a real chance to save and budget for their unique medical expenses.”
Additionally, H.R. 1860 would increase an annual cap for contributions to FSAs to $5,000 and allow an extra $500 per each additional dependent above two dependents, according to the information, and would eliminate a “use it-or-lose it” rule under current law to allow any unused funds to be rolled over in perpetuity.
The measure has been referred to the U.S. House Ways and Means Committee for consideration.