Employee benefits industry organizes to protect flexible spending

Washington, D.C. Nonprofit organization Employers Council on Flexible Compensation said Monday it has formed a national advocacy organization to protect Flexible Spending Accounts.

The new organization, Save Flexible Spending Plans, was formed to urge against Congress’s consideration of capping contributions to the tax-advantaged benefit in order to fund a small portion of healthcare reform.

“It would be disastrous if the millions of Americans who rely on flexible spending accounts to manage their healthcare costs become the unintended victims of healthcare reform,” said Jody Dietel, spokesperson for Save Flexible Spending Plans and compliance officer at WageWorks, a benefits company based in San Mateo, Calif. “A cap on flexible spending accounts will force plan participants to pay higher taxes and incur higher healthcare costs at a time when many can least afford it.”