Save Flexible Spending Plans lobbying FSA reform

NEW YORK The simple fact is that healthcare reform in this country has to be paid for somehow. But cutting OTCs out of FSAs amounts to an additional healthcare tax levied against Americans actually trying to save money on health care today. That’s just backward thinking.

When you consider that allowing thrifty Americans to buy an OTC allergy medication with pre-tax funds may dissuade them from buying a generic Rx-only allergy medication for the cheaper co-pay. And while those Rx-allergy users are taking care of their generic co-pay, who’s picking up on the cost of the rest of the medicine?


Approximately 14.8% of American households have an FSA account, according to the National Center for Health Statistics, which means that some 16.5 million families are saving pre-tax income dollars. The Senate shouldn’t be looking to cut this healthcare savings a la tax benefit; they should be trying to figure out how to get more Americans turned onto FSA savings.


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