For Americans with high medical expenses, flexible spending accounts (FSAs) have consistently proven to be an effective vehicle for helping reduce out-of-pocket costs of care by up to 40 percent.
However, because of the "use it or lose it" provision, which mandates that participants spend down the entirety of their FSAs by the plan year's end, many consumers have been wary to enroll in these accounts for fear of losing their hard-earned dollars.
That's an unnecessary penalty, according to Senators Ben Cardin (D-Md.) and Mike Enzi (R-Wyo.), who recently introduced bipartisan legislation, the Medical Flexible Spending Account Improvement Act (S. 1404), to remove this forfeiture rule.
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