Rep. Stivers Reintroduces Bipartisan RAISE Health Benefits Act

Statement

Representative Steve Stivers (R-OH) reintroduced the Responsible Additions and Increases to Sustain Employee (RAISE) Health Benefits Act, H.R. 1366. For families across the country, rising health care costs are a major concern. The bipartisan RAISE Health Benefits Act seeks to give hardworking Americans more discretion in how they pay for the care their family needs, while also allowing them to save for future expenses. Representative Vicente Gonzalez (D-TX) is the bill's lead co-sponsor.

"This bill is simply about putting the "flexibility' back in "flexible spending accounts.' Health care costs are a burden for too many families, and it is important that they have the ability to choose what is best for their families," Stivers said. "This is the type of commonsense legislation that both sides of the aisle can support because FSAs are extremely popular, and we have the chance to make them better."

"Your family, your needs, your healthcare -- your decision," Representative Gonzalez said. "Americans deserve the right to have appropriate tax advantages to plan their spending when it comes to the health and well-being of their family. Enabling Americans to save for healthcare is a non-partisan issue. I am proud to join Congressman Stivers in this effort to give families the power of flexible financial options on a case-by-case basis."

The RAISE Act seeks to make Flexible Spending Accounts (FSAs) more flexible to better serve the specific needs of each of the families who take advantage of these accounts. In March of 2018, it was reported that up to 45 percent of civilian workers had access to Healthcare Flexible Spending Accounts to set aside money to pay for health care services and items that are not covered by insurance, such as doctor copayments, prescription drugs, medical supplies, or vision and dental services. For the average worker, those costs total $5,547 per year.

Under the Affordable Care Act, an annual cap was established for contributions to FSAs, a cap which now rests at $2,700 -- far lower than the nearly $5,600 a family spends for their health care coverage. This arbitrary cap does not reflect the reality of health care costs that families face today and undermines the economic benefits of allowing families to use FSAs to build up funds for medical needs. The RAISE Act addresses this by increasing that cap to $5,000, while also allowing an extra $500 per each additional dependent above two dependents, allowing families to save more towards medical costs.

In addition, current law includes a "use it-or-lose it" rule: any unused funds in an FSA at the end of the year are forfeited, as opposed to being rolled over to the next year, again, impeding a family's ability save for a child's braces or to prepare for an unexpected procedure. The RAISE Act eliminates this rule and allows any unused funds to be rolled over in perpetuity.

This legislation has been endorsed by the American Association of Orthodontists.

"The American Association of Orthodontists applauds Representatives Steve Stivers and Vicente Gonzalez for reintroducing the RAISE Act on a bipartisan basis. Flexible spending accounts (FSAs) are a critical tool for individuals of all incomes, and are used by approximately 63% of AAO members' patients for their orthodontic services. Current limitations on FSAs -- including an arbitrary $2,700 contribution cap that is well below most families' out-of-pocket healthcare spending, and limitations on rolling over funds -- prevent families from maximizing these accounts," AAO President Dr. Brent Larson said.

"The AAO supports the RAISE Act, which would raise the contribution cap to $5,000, and allow families with more than two dependents to contribute an additional $500 per additional dependent. The RAISE Act would also eliminate the "use it or lose it rule," allowing families to save for planned or long-term medical needs. The over 9,000 U.S. members of the AAO are encouraged that elements of the RAISE Act passed the House last summer, and we strongly encourage the 116th Congress to finish the job and give consumers greater control of their family's healthcare spending," Dr. Larson continued.

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