For liberals and progressives, FSAs are essential tools for those who need the most help. Nearly 72 million working age Americans have chronic conditions such as diabetes, with out-of-pocket expenses of $3,000 - $5,000 or more, even when covered by a comprehensive, low-deductible health plan. The Robert Wood Johnson Foundation noted that out-of-pocket spending for individuals with one or more chronic conditions averages $4,398 per year, far higher that the caps being proposed in Congress. Capping contributions to FSAs will result in lower medication compliance, poorer health, and higher medical bill problems for those who need the most help.

FSAs are incredibly powerful and effective tools to restrain health spending and promote better lifestyles, Triplett said. And they could be improved while saving taxpayer dollars. Ending the current 'use-it-or-lose-it' regulations would help people in their budgeting process, especially if coupled with the ability to roll FSA dollars over from one year to the next.

Triplett concluded, It is unfortunate that more politicians are concerned about raising taxes on millionaires than about raising taxes on the middle class and chronically ill by capping FSAs. In fact, this is downright shocking. But policy makers still have time to do the right thing and heed the President's admonition to first do no harm to the 'little guy' when constructing health reform.

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