Letter Supporting H.R. 3947, Which Ends the Current "Use-It-or-Lose-It" Rule for Flexible Spending Accounts (FSAs)

The Honorable John Larson
United States House of Representatives
Washington, DC 20515

 

The Honorable Dave Camp
United States House of Representatives
Washington, DC 20515

 

Dear Representatives Larson and Camp:

 

The U.S. Chamber of Commerce, the world’s largest business federation representing more than three million businesses and organizations of every size, sector, and region, thanks you for your leadership in introducing H.R. 3947, which ends the current “use-it-or-lose-it” rule for Flexible Spending Accounts (FSAs). H.R. 3947 would permit employees to rollover $500 annually, rather than forfeiting the money at the end of the plan year—a move that will make FSAs more attractive and useful to working Americans.

 

Although most large employers offer FSAs, only about one in five eligible employees choose this consumer-empowering option. Those employees that currently have FSAs often engage in a rush to spend the money at the end of the plan year—filling cabinets with aspirin and band-aids, but not helping control healthcare costs or spending. This bill will help lower out-ofpocket costs for working Americans, allowing them to use pre-tax dollars for health spending without fear of an irrational policy that encouraged them to waste money or lose it.

 

The Chamber appreciates your continuing efforts to improve FSAs, and looks forward to working with you and your colleagues to enact H.R. 3947.

 

Sincerely,

 

R. Bruce Josten