Senate Adopts Amendment Repealing HSA, FSA Restrictions

U.S. Sen. Mike Johanns (R-NE) released the following statement after the Senate adopted by voice vote his amendment repealing new restrictions placed on health savings accounts (HSA) and flexible spending accounts (FSA) by President Obama’s health care law:

“This amendment simply repeals some of the most illogical provisions in the President’s health care law,” Johanns said. “It does nothing more than give back the flexibility and freedom families need to make health care decisions without government mandates getting in the way. Regardless of intentions, we cannot ignore the negative consequences the implementation of the President’s health care law is having on American families. I’m pleased my amendment received overwhelming bipartisan support.”

NOTE: A $2,500 FSA contribution cap went into effect this year and another provision of the law already in effect prohibits HSA and FSA participants from using their own account dollars to purchase over the counter medicines without a prescription. HSAs and FSAs are special spending accounts that allow individuals to set aside pre-tax dollars for their health care costs. Prior to the health care law, FSAs had no federal contribution limits. This allowed families to plan for known or routine out-of-pocket health expenses not covered by insurance plans.