[Congressional Record Volume 159, Number 68 (Wednesday, May 15, 2013)]
[Senate]
[Pages S3533-S3534]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. CARDIN (for himself and Mr. Enzi):
  S. 966. A bill to amend the Internal Revenue Code of 1986 to increase 
participation in medical flexible spending arrangements; to the 
Committee on Finance.
  Mr. CARDIN. Mr. President, I rise to introduce the Medical FSA 
Improvement Act of 2013. I wish to thank my friend and colleague, 
Senator Enzi, for joining me in this effort. Our bill would amend the 
Internal Revenue Code to allow employees who use health flexible 
spending arrangements, FSAs, to cash out any remaining balance in their 
account at the end of a plan year. This provision replaces current IRS 
policy in which any unspent FSA funds revert to the employer at the end 
of the plan year for activities related to plan administration.
  FSAs are an important benefit for all workers as they allow employees 
to set

[[Page S3534]]

aside pre-tax dollars to pay for out-of-pocket health care 
expenditures, including dental and vision services. Many families count 
on their FSAs to help cover their monthly expenses for prescription 
drugs, co-pays for doctors' visits, children's dental care, and medical 
equipment and supplies for disabled family members.
  In an economy where every penny counts, it just does not make sense 
for employees who may have overestimated their anticipated yearly out-
of-pocket health care expenditures at the beginning of a plan year to 
be penalized by having to forfeit unspent funds to their employer at 
the end of a plan year. It also leads to wasteful spending when 
employees try to avoid forfeiting their FSA balances by rushing at the 
end of a plan year to purchase unnecessary health-related items, such 
as multiple pairs of eyeglasses.
  One-third of the Federal workforce currently use FSAs, as do millions 
of State, county and local public employees, and workers in private 
industry. We should encourage employees to put money into FSAs to help 
defray their out-of-pocket health care costs, to use these funds 
wisely, and not have them fear losing hard-earned money at the end of a 
plan year just because their health care expenditures may be less than 
anticipated.
  I urge my colleagues to support this bipartisan legislation, which 
will help America's working families better manage their personal 
finances.

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