Support FSA Increase by Supporting RAISE Act

Flexible Spending Accounts (FSAs) are a benefit offered by many employers, and are funded with employees’ pre-tax dollars. FSAs help Americans pay for a variety of out-of-pocket health care costs such as co-pays, deductibles, prescription drugs, vision care, hearing aids, and dental services, including orthodontic treatment. FSAs are limited to $2,600 per year as of 2017.

A bill before Congress, the RAISE Act, would increase the FSA annual cap, and provide for other modifications to the current law. The RAISE Act proposes:

  • Increasing the annual contribution cap to $5,000 from the current $2,650 per year as of 2018.
  • Adding an additional $500 to the FSA savings cap for each dependent above two dependents.
  • Canceling the current “use-it-or-lose-it” rule, so that all FSA funds left over at the end of the year can be rolled over without penalty, allowing participants the opportunity to build reserves.

On February 16, 2017, the AAO’s RAISE Act was re-introduced in the U.S. House of Representatives by lead sponsors Steve Stivers (R-OH) and Michelle Lujan Grisham (D-NM). Other co-sponsors include:

  • Marsha Blackburn (R-TN)
  • Cheri Bustos (D-IL)
  • Chris Collins (R-NY)
  • Barbara Comstock (R-VA)
  • Peter DeFazio (D-OR)
  • Derek Kilmer (D-WA)
  • Steve Pearce (R-NM)
  • Chellie Pingree (D-ME)
  • Kyrsten Sinema (D-AZ)
  • Pat Tiberi (R-OH)
  • Paul Gosar (R-AZ)
  • Bill Flores (R-TX)
  • Elise Stefanik (R-NY)
  • John Moolenaar (R-MI)
  • Mike Kelly (R-PA)
  • David Joyce (R-OH)
  • Tim Walberg (R-MI)
  • Rober Latta (R-OH)
  • Jared Huffman (D-CA)

The AAO is still trying to obtain additional co-sponsors in the House and is still looking for lead sponsors in the Senate.