Rep. Paulsen Introduces the Patients Freedom to Choose Act
Will Empower Patients and Provide $21.1 Billion in Tax Relief

Washington, D.C. – Seeking to give Americans more choice in using their health care plans and to encourage healthcare savings, Rep. Erik Paulsen (MN-03) has introduced the Patients Freedom to Choose Act in the United States House of Representatives.  This legislation would repeal part of the new health care law related to Health Savings Accounts (HSAs) and Flexible Spending Accounts (FSAs), two innovative and popular consumer-directed health benefit plans that large and small businesses offer to their employees.

"One of the many flaws of the new health care law is the added restrictions placed on hardworking Americans who rely on consumer-directed benefit plans," said Rep. Paulsen. "Health Savings and Flexible Spending Accounts are critical components to giving the American people the power to choose what's best for them. Instead of limiting options, as is happening under the new healthcare law, we should be empowering patients by giving them increased access to affordable, quality care."

Beginning in 2013, contributions to FSAs will be limited by a federal cap of $2,500 under current law. The new health care law will also prohibit individuals from using their HSA and FSA accounts to purchase over-the-counter (OTC) medication without a prescription from their doctor. The Patients Freedom to Choose Act would restore a patient's ability to use their HSA and FSA accounts for over-the-counter drug purchases and keep the federal government from limiting their ability to save for health care costs and remove the cap on FSAs. These measures will provide a total of $21.1 billion in tax relief, with $15.6 billion in savings coming from the removal of the $2,500 cap on FSAs and $5.5 billion in savings coming from the OTC medication provision.

Senator Kay Bailey Hutchison of Texas, a long time advocate for preserving patient choice, introduced companion legislation in the United States Senate.  

"Under the health law, the federal government is stifling patients' flexibility and freedom to use health benefit accounts that have helped make care more affordable for tens of millions Americans," said Sen. Hutchison. "Our bill strikes these arbitrary limitations and puts patients back in charge of how and when they'll use HSA and FSA benefits."

Paulsen, a champion of small business and advocate of free enterprise, entrepreneurship, and innovation currently serves on the House Ways and Means Committee, and is co-chair of the Congressional Korea-U.S. Free Trade Working Group and co-chair of the House Medical Technology Caucus.

Click here to watch Rep. Paulsen deliver a floor speech on the Patients Freedom to Choose Act. For more information on Rep. Paulsen’s work in Congress, please visit www.paulsen.house.gov.

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