Posted: Nov 2, 2009 6:24 AM by Associated Press
A health care legislation provision that would cap an employee's annual contribution to tax-free health care spending accounts is running up against opposition from an odd assortment of groups. Bills in the House and Senate would cut off employee contributions at $2,500 for the accounts that help them pay for dental work, insurance copayments or over-the-counter drugs.
Capping contributions would raise more than $13 billion over 10 years to help pay for the health care overhaul. A group called Save Flexible Spending Plans, which is backed by insurers, companies and a powerful union, is running a limited print ad campaign against the cap, calling it a "definite tax on the middle class, particularly those with chronic illnesses."
A Senate Finance Committee spokeswoman, however, says the impact would be limited, since data suggests the average contribution to the plans in 2008 was under $1,400.