FSAs get reprieve until 2013—OTC ends in 2011

By Ric Joyner, MBA, CEBS, GBA, CFCI

The President signed the final health insurance reform bill Tuesday. The bills allow Flexible Spending Accounts to be reprieved until 2013 for the $2500 cap. This gives us time to lobby for the removal of the cap.

Over the counter meds (OTC) are removed as of 2011. Please contact your Representative to let them know your thoughts on the cap either way. (www.house.gov and www.senate.gov).

If your firm is under a collective bargaining agreement, and the bargaining agreement ends, e.g. 2012, the agreement limits remain in effect until a new contract is created. When the new contract is drafted it is  our assumption the regulation limits would apply.