U.S. Congressman Aaron Bean has introduced the Flexible Savings Arrangements for Healthy Robust America (FSA-HRA) Act, aiming to provide more options for Americans in managing their future health expenses. This bipartisan legislation proposes an amendment to the Internal Revenue Code of 1986, allowing Americans to transfer contributions from Flexible Spending Accounts (FSA) and Health Reimbursement Arrangements (HRA) into Health Savings Accounts (HSAs) while establishing coverage under a High-Deductible Health Plan (HDHP).
Congressman Bean emphasized the urgency of this legislative move. “Many hardworking individuals and families find our nation’s health care system too convoluted and confusing to navigate. As a result, many often forfeit their unused FSA contributions or lose their HRA contributions. We need to give Americans the flexibility to plan, save, and take charge of health care decisions for their families. That’s why I’m proud to introduce this commonsense bill that will make it easier for families to take control of both their physical and financial health.”
Joining him in introducing the bill were Congressmen Dan Crenshaw of Texas and Jimmy Panetta of California. Congressman Crenshaw remarked, “This bill is simple. If you contribute your dollars to a tax advantaged account, you should be able to use those dollars to fund a health savings account. Arbitrary government rules shouldn’t stop Americans from using their own savings for health care.”
Congressman Panetta added, “All too often, too many working families lose their unused FSA and HRA funds because of outdated ‘use-it-or-lose-it’ rules. The FSA-HRA Act lets them roll those unused dollars into their Health Savings Accounts so they can save for future medical expenses tax-free. This bipartisan fix gives working families more flexibility and ensures they’re not penalized for being prepared.”
Currently, the law mandates that FSA and HRA contributions must be spent by the year’s end or else forfeited and returned to the employer. The FSA-HRA Act aims to offer American workers, including those changing jobs, a way to preserve their unused funds by eliminating the outdated policy and providing the flexibility to save for future medical expenses tax-free.
