Greensboro Reporter

Washington, DC - On August 31, 2023, Representatives Kathy Manning (NC-06), Michelle Steel (CA-45), and Dan Crenshaw (TX-02) introduced the bipartisan Flexible Savings Arrangements for a Healthy Robust America (FSA-HRA) Act, legislation to expand options for Americans aiming to save responsibly for their future health costs. Under this bipartisan legislation, the Internal Revenue Code of 1986 would be amended to allow Americans to transfer Flexible Spending Account (FSA) and Health Reimbursement Arrangement (HRA) contributions into Health Savings Accounts (HSAs). The proposal would protect American workers’ unused FSA and HRA funds by removing the outdated use-it-or-lose-it policy, allowing for more flexibility in medical expense savings.

“The existing tax code ‘use-it-or-lose-it’ requirement forces Americans to forfeit contributions made to their Health Savings Accounts and disregards the uncertainty of individual health care needs. The over one million North Carolinians enrolled in HSAs should be encouraged, not discouraged, to save for health emergencies,” said Congresswoman Kathy Manning (NC-06). “I was proud to join Representatives Steele and Crenshaw in introducing bipartisan, commonsense legislation to remedy this flaw in our tax code and empower hardworking Americans to maintain control of their families’ financial planning.”

“The tax code should never present a barrier to Americans seeking to responsibly save for future health care costs,” said Congresswoman Michelle Steel (CA-45). “The FSA-HRA Act empowers individuals to take charge of their own health care decisions by utilizing the resources available to them without arbitrary roadblocks from Washington, D.C. I’m proud to lead this legislation with Reps. Manning and Crenshaw to cut red tape and improve health outcomes for over 35 million hard-working Americans who use HSAs to pay for medical expenses.”

A study published by the Employee Benefit Research Institute found that, in recent years, more than 40% of workers with an FSA forfeited a portion of their contributions. In 2019 and 2020, employees lost between $339 and $408 in unused FSA contributions each year, totaling to $7.2 billion nationwide.

Original source can be found here.