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Roe Statement on the Health Care Cost Reduction Act of 2012
WASHINGTON D.C. – Today, U.S. Congressman Phil Roe, M.D. (TN-01) released the following statement on H.R. 436, the Health Care Cost Reduction Act of 2012:
“Passage of the Health Care Cost Reduction Act is important for jobs, innovation and removal of tax penalties found in the health care law. Included in the health care law is a 2.3% excise tax levied on American device companies that is set to take effect in less than seven months. H.R. 436 will repeal the excise tax on medical devices, which will save jobs by preventing them from moving overseas. Passage of H.R. 436 is important for jobs and innovation in the medical device industry.
“The legislation also amends the ‘use-it-or-lose-it’ rule in the new health care law associated with Flexible Spending Accounts (FSA). This means FSA participants will be able to keep more of their hard-earned dollars rather than suffer from forfeitures for monies not used. Instead, H.R. 436 will allow participants to cash out up to $500 in FSA balances at the end of the year, and those funds would be treated as regular, taxable wages.
“Finally, the Health Care Cost Reduction Act removes new restrictions, implemented in the health care law on January 1, 2011, on the purchase of over-the-counter medications through tax-advantaged accounts. The tax currently hits any American with a health savings account (HSA), flexible spending account (FSA), health reimbursement arrangements (HRA), or medical savings account (MSA).
“The Health Care Cost Reduction Act is another example of why it is so important to repeal the dangerously flawed health care law that does nothing to address the cost issue, but only burdens hardworking Americans with more taxes. It is vital that Congress works to keep the pressure on the Senate and the president to repeal the health care law – whether all at once or piece-by-piece.”