Bean Increases Health Care Choices for Americans

WASHINGTON—Today, U.S. Congressman Aaron Bean (FL-04) introduced the Flexible Savings Arrangements for Healthy Robust America (FSA-HRA) Act, to expand options for Americans seeking to save responsibly for their future health costs.

Specifically, this commonsense bipartisan legislation amends the Internal Revenue Code of 1986 to permit Americans to transfer Flexible Spending Account (FSA) and Health Reimbursement Arrangement (HRA) contributions into Health Savings Accounts (HSAs) in connection with establishing coverage under a High-Deductible Health Plan (HDHP). 

Upon introduction, Congressman Bean said: “Many hardworking individuals and families find our nation’s health care system too convoluted and confusing to navigate. As a result, many often forfeit their unused FSA contributions or lose their HRA contributions. We need to give Americans the flexibility to plan, save, and take charge of health care decisions for their families. That’s why I’m proud to introduce this commonsense bill that will make it easier for families to take control of both their physical and financial health.”

Congressman Bean was joined by Congressmen Dan Crenshaw (TX-02) and Jimmy Panetta (CA-19) in introducing this bill.

“This bill is simple. If you contribute your dollars to a tax advantaged account, you should be able to use those dollars to fund a health savings account,” said Congressman Crenshaw. “Arbitrary government rules shouldn’t stop Americans from using their own savings for health care.”

“All too often, too many working families lose their unused FSA and HRA funds because of outdated “use-it-or-lose-it” rules,” said Congressman Panetta. “The FSA-HRA Act lets them roll those unused dollars into their Health Savings Accounts so they can save for future medical expenses tax-free.  This bipartisan fix gives working families more flexibility and ensures they’re not penalized for being prepared.”

BACKGROUND 

Currently, the law requires FSA and HRA contributions to be spent by the end of the year or otherwise forfeited and returned to the employer. 

The FSA-HRA Act will allow American workers, or those switching jobs, to preserve their unused FSA and HRA funds by removing this out-of-date use-it-or-lose-it policy and giving them the flexibility to save for future medical expenses tax-free.

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