DeMint bill would ease limits on medical spending accounts

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The 4th District Republican said his amendments to existing federal law on flexible medical savings accounts track those called for by President Bush in the budget submitted to Congress earlier this year.

DeMint said that more than 40 House members have signed the proposed legislation. It would allow participating employees to carry over $500 in unspent funds from one year to the next, and the withdrawal of funds as taxable income or transfers into 401(k) or other qualified savings accounts for retirement programs.

Flexible spending accounts are tax-free accounts offered by employers allowing workers to pay for medical expenses not covered by insurance. The accounts help workers offset out-of-pocket health care costs, including co-payments or eye and dental care, and allow them to have more control over their medical decisions.

"This bill will reform the inflexible 'use-it-or-lose-it rule' so more Americans can enjoy the benefits of an FSA without having to lose their money at the end of the year," DeMint said.

Thomas G. Robinson, president of Corporate Staffing Inc. in Greenville, was among those who attended the DeMint press conference at the Greater Greenville Chamber of Commerce headquarters.

Robinson said the current rules have slowed acceptance and use of the program.

"When you set money aside, then you have to use it or lose it, that's just human nature not to be reluctant to try the program," Robinson said.

DeMint said the change would be a powerful tool in helping to slow the surge in health care costs and medical insurance premiums.

"At a time when health care costs and insurance premiums are on a double-digit rise, it is critical that we allow working Americans the ability to take control of their own medical costs," DeMint said.

Co-sponsoring the bill with DeMint is Rep. Albert Wynn, D-Md., a member of the Congressional Black Caucus.

Among the groups supporting the legislation are the American Benefits Council, the U.S. Chamber of Commerce, the National Association of Manufacturers and the National Association of Health Underwriters.

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Dan Hoover covers politics and can be reached at 298-4883.