CHPA Comments on Treasury Department’s Ruling on FSA Rollover Provision

Washington, D.C. (January 6, 2005)—In response to a request by Senator Charles E. Grassley (R-Iowa) to modify the “use it or lose it” rule administratively, the United States Department of Treasury ruled that congressional action is needed to change this policy. The Consumer Healthcare Products Association (CHPA), which has worked diligently to promote initiatives supporting the therapeutic value and cost effectiveness of OTCs, issued the following statement:

Flexible spending accounts provide a valuable option for employees to save money on healthcare expenses, including cost-effective and essential over-the-counter (OTC) medicines.  Removing the “use it or lose it” component of flexible spending accounts makes FSAs more attractive, and encourages greater utilization. CHPA applauds Senator Grassley and his committee’s efforts on behalf of taxpayers to resolve this issue, and pledges to work with the 109th Congress to allow FSA participants a more efficient means to manage their healthcare spending.

Editor’s Note: Senator Grassley’s statement and the U.S. Department of Treasury’s response are available online. 

Contacts: Elizabeth Assey and Virginia Cox, 202.429.9260

CHPA is the 124-year-old trade association representing U.S. manufacturers and distributors of over-the-counter medicines and nutritional supplements.