FSAs Get Two-Year Reprieve On Cap

ConsumerDriven Market Report March 18, 2010

 

Virtually No Changes In Senate Bill On Most Issues

FSAs Get Two-Year Reprieve On Cap

   The final health reform bill allows a two-year reprieve for flexible spending accounts and a $2,500 cap on annual contributions in the Senate bill that was scheduled to take effect December 31 of this year.  FSAs will now see their contributions limited starting on January 1, 2013 and the cap will be indexed to inflation starting in 2014. The final bill contains no other changes in CDH plans and never mentions HSAs.

The change in FSA deadlines was a victory for a group of employers, health plans and administrators led by the Employers Council on Flexible Compensation and board chair/UMB Bank leader Dennis Triplett. Others involved were Joe Jackson from Wageworks, Bob Patricelli from Evolution Benefits, Bob Natt from PayFlex, Tom Torre from Metavante, and a number of other companies with major FSA products.

© Interpro Publications Inc. 2010 (used with permission 3-24-10)

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