ECFC Submits Testimony to House Subcommittee on the Benefits of Consumer-Directed Health Plans | Business Wire


the leading nonprofit organization promoting choice in benefit

solutions, today submitted testimony to the House Ways and Means

Subcommittee on Health. The hearing, “Lowering Costs and Expanding

Access to Health Care through Consumer-Directed Health Plans” will

examine trends in enrollment and demographics for health spending

account holders and the benefits of consumer-directed health care. It

will also examine policies designed to give more consumers access to

tax-favored savings accounts, including Health Savings Accounts (HSAs).


is dedicated to preserving and expanding employer-provided

tax-advantaged benefit choices for working Americans, including

account-based benefit plans which provide benefits in areas such as

health care, child care. Commuting. ECFC submitted a Statement

for the Record to the Subcommittee.

In the statement, ECFC cited the National

Center for Health Statistics’ report, that states many employers are

moving toward higher deductible health plans or plans that increase the

cost sharing amounts borne by employes. Consequently, ECFC stated,

“consumer-directed benefit arrangements, such as FSAs, HRAs and HSAs,

are of increasing importance to American workers.”

Legislation Needed to Expand Consumer-Directed health Plans

In the statement, ECFC stated, “Today, health care is the main burden on

family budgets and can cripple their ability to remain independent and

productive members of the workforce and their communities. ECFC

membership believes that HSAs and FSAs should be expanded in the market

place to provide families and individuals with the ability to manage

their health costs and decrease the financial burden that results from

an unexpected and expected health care crisis.”

Legislation supported by ECFC includes:

  • H.R. 5138, the Bipartisan HSA Improvement Act introduced by Reps.

    Mike Kelly (R-PA) and co-authored by Rep. Earl Blumenauer (D-OR) with

    Reps. Erik Paulsen (R-MN), Ron Kind (D-WI), Terri Sewell (D-AL).

    Brian Fitzpatrick (R-PA) as co-sponsors. This bill makes changes

    to the rules surrounding HSAs and FSAs that we believe will make HSAs

    and FSAs more widely available. ECFC supports the intent of this bill

    and looks forward to working with the authors of this bill to make

    sure that its changes can be readily administered by plan sponsors and


  • H.R. 1175, the Health Savings Act introduced by Rep. Erik Paulsen

    with Rep. Mike Kelly (R-PA) and Lynn Jenkins (R-KS) as co-sponsors.

    ECFC supports this bill, which will address many of the issues

    surrounding HSAs that inhibit the growth of HSAs.

  • H.R. 1204, the Responsible Additions and Increases to Sustain

    Employe Health Benefits Act of 2017 introduced by Rep. Steve Stivers

    (R-OH) with 38 co-sponsors. This bill would increase the annual

    limit on employe salary reduction contributions to $5,000, with an

    additional $500 for each additional employe (as adjusted for

    inflation after 2017) and allow a carryforward into the next year for

    unused amounts. ECFC supports this bill since it recognizes that FSAs

    provide an important tax-efficient means for employes (especially low

    and middle-income employes) to budget for their health care expenses

    and provides for an expansion of opportunities for employes to use an

    FSA to budget for payment of their health care expenses.

About ECFC

ECFC is a leading non-profit organization dedicated to maintaining and

expanding employe benefit programs on a tax-advantaged basis. ECFC

represents and promotes employe benefit programs through effective

lobbying and provides education and awareness to members, compensation

practitioners, national opinion leaders and the general public to help

advance healthcare consumerism. ECFC, which was founded in 1981 as the

Employers Council on Flexible Compensation, is the single organization

that focuses its efforts on preserving, protecting and defending the

tax-advantaged programs currently available to working families through

employer plan sponsors.

Christine Linder, 314-827-0600 x 11
[email protected]