(Washington, DC)  – Congressman Charles W. Boustany, Jr., M.D. (R-South Louisiana), released the following statement after the House voted to pass the Protect Medical Innovation Act of 2011, H.R. 436, earlier today. This bill contained H.R. 1004, the Medical FSA Improvement Act of 2011, which was introduced by Congressman Boustany as a way for Americans to plan and save for their health-care needs using flexible spending arrangements or FSAs. H.R. 1004 makes FSAs easier to use by changing a government regulation that forces workers to forfeit all of their remaining FSA funds to an employer at the end of the year:

“H.R. 436 includes a bipartisan provision I introduced with Congressman John Larson. Our provision helps lower health costs by making it easier for Americans to plan and save for their health-care needs using flexible spending arrangements or FSAs. These accounts allow Americans to set aside pre-tax dollars to pay for rising out-of-pocket medical expenses. About 35 million Americans rely on FSAs, and the median salary of FSA enrollees is $55,000. 

“H.R. 1004 makes FSAs easier to use by reforming the Treasury Department’s ‘use-or-lose’ policy. This policy discourages enrollment in FSAs by forcing workers to forfeit any of their remaining FSA funds to an employer at the end of the year.  Our bill, as modified in the Ways and Means Committee, allows workers to ‘cash out’ a remaining end-of-year balance of up to $500, treating it as taxable compensation. Patients and families need relief from rising health costs. FSAs will help tens of millions more individuals if the so-called ‘use-or-lose’ rule is reformed. This legislation provides a common sense solution for families across South Louisiana, and the rest of the country, by keeping more of their hard-earned money in their pockets during this tough economic climate.” 

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Congressman Boustany spoke on the House floor regarding this legislation earlier today. View the video here.