Bipartisan legislation reintroduced by U.S. Rep. Steve Stivers (R-OH) last week would give families more flexibility to use flexible spending accounts (FSAs) to save for medical expenses.
The Responsible Additions and Increases to Sustain Employee (RAISE) Health Benefits Act would double the annual cap on FSA contributions from $2,500 to $5,000 to better reflect rising health care costs.
The RAISE Health Benefits Act would also enable families with more than two dependents to deposit up to $500 per year into FSAs for each dependent.
“Not all families are the same, and it just makes sense that a family with four children should have a higher FSA limit than a single adult,” Stivers said. “Health care costs can be expensive, and this legislation would make it easier for families to address the financial challenges of paying for these types of health care costs.”
FSAs can be used to pay for health care expenses that aren’t covered by insurance like copays, prescription drugs, medical supplies, vision and dental services. The $2,500 annual cap on contributions to FSAs was established under the Affordable Care Act in 2010 and has not been adjusted to account for rising health care costs.
U.S. Rep. Michelle Lujan-Grisham (D-NM) was the lead cosponsor of Stivers’ bill.