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Organized Dentistry Coalition supports eliminating 'use it or lose it' rule

February 17, 2017

By Jennifer Garvin

Washington — The Association and members of the Organized Dentistry Coalition are asking Congress to support legislation calling for the repeal of the "use-it-or-lose-it" rule for flexible spending accounts, allowing consumers to build balances over several years.

The Responsible Additions and Increases to Sustain Employee Health Benefits Act of 2017 would also allow families to build balances over several years and would "significantly expand" the current FSA annual contribution cap from $2,600 to $5,000 and let families with more than two dependents save an additional $500 a year for each additional dependent.

"As you know, flexible spending accounts allow consumers to set aside pretax dollars to pay for health care services and items that are not covered by insurance — such as vision and dental services, doctor copayments, prescription drugs, and medical supplies," the dental organizations wrote in letters to the Senate Committee on Finance and House Committee on Ways and Means. "FSAs allow families to efficiently save money for medical care, encourage active engagement in health care decision-making, and incentivize informed consumers of health care services."

Restricting families from carrying over balances in these savings accounts makes it "impossible for some families to save up for long-term medical needs," the coalition noted, and the $2,600 cap restricts families from saving funds for more expensive medical costs and "unfairly restricts larger families' savings per person as compared to smaller families."

Read the entire letter here.