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Bill would change health FSA policy

A bill that would allow workers who put money in a health flexible spending account to recover unspent funds at the end of the year, rather than having the funds revert to their employers, has been introduced in the U.S. Senate by Sen. Ben Cardin, a Maryland Democrat, and Mike Enzi, R-Wyo.

The Medical FSA Improvement Act of 2013 (S. 966) would amend the Internal Revenue Code to allow employees who use health flexible spending arrangements (FSAs) to cash out any remaining balance in their account at the end of a plan year.

Cardin said the bill is an attempt to end current “use-it-or-lose-it” policy for FSAs.