[Congressional Record Volume 145, Number 135 (Thursday, October 7, 1999)]
[House]
[Page H9520]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




        SUPPORT H.R. 3034, TO EXPAND FLEXIBLE SPENDING ACCOUNTS

  (Mr. ROYCE asked and was given permission to address the House for 1 
minute and to revise and extend his remarks.)
  Mr. ROYCE. Madam Speaker, flexible spending accounts allow employers 
and employees to contribute pretax money to accounts which they can 
then use to pay for out-of-pocket medical expenses and insurance costs 
and to pay for deductibles. But there is a problem in the Tax Code with 
the way in which these accounts work today, and that is there is a use 
it or lose it provision where it reverts back to the employer. So, 
typically, people put down $750 of pretax to use for these flexible 
spending accounts, and at the end of the year about $140 reverts back 
that they are not able to use.
  My bill, House bill 3034, would allow this to be expanded, would 
allow this to be carried over into the following year so that that 
would not be lost. A lot more people would utilize this provision if 
they did not lose it.
  Many employees would choose less expensive, high-deductible insurance 
policies and put the premium savings then in their flexible spending 
accounts if they knew they could roll that over into the following 
year. It also reinforces the doctor-patient relationship.
  Madam Speaker, I urge support for H.R. 3034.

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