Madison, WI- The Senate Finance Committee proposal for health care reform would have dire consequences on a thriving industry and leave Americans facing increased taxes and loss of benefits.
This trending topic is gaining attention in major publications and garnering attention in blogs and social networks. As a source in the industry, executives at eflexgroup (eflex) would like to make sure this story is heard from both angles. The issue itself is controversial, but heightening that controversy is the fact that only one side of this story has been explored by the media.
The Senate Finance Committee recently met in Washington to outline options for potential health care reform designed to fix the amount of uninsured in this country, an estimated 15%. The document issued is titled, “Financing Comprehensive Health Care Reform: Proposed Health System Savings and Revenue Options.” In this document, the Senate outlines a variety of options which include repealing, capping or reducing the employer tax-exclusion for providing employer benefits and eliminating pre-tax benefits like flexible spending accounts (FSAs), health savings accounts (HSAs), and health reimbursement arrangements (HRAs).
Currently one in six Americans (that’s 48 million people) participate in flexible spending accounts, or work in the flex spending industry. Taking away these benefits and closing the industry would have a devastating effect on thousands across the country. Millions would lose pre-tax benefits that help them pay for out-of-pocket medical expenses, daycare, and health insurance. Plus, hundreds of thousands would face unemployment and ultimately increase the 15% of uninsured.
In addition, employers will be forced to increase employee costs because of a proposed reduction or elimination of the health insurance tax credit. Health insurance costs to employees will become exacerbated coupled with the fact that they lose the pre-tax savings on health expenses, insurance premiums, child care, etc. All of these negative effects will come about to fix roughly 15% of the population that do not have health insurance. The irony is that the amount of people that the Senate decisions will displace will be greater than the 15% they’re trying to fix!
Why, in a time of economic crisis would the Senate take away jobs from millions of Americans? Shutting down a healthy and thriving industry that saves millions of Americans money on taxes will only mean more problems for Americans and our already troubled economy. The Senate isn’t seeking a sensible solution here, but rather choosing the easy (but destructive) way out.
For more information about the Financing Comprehensive Health Care Reform: Proposed Health System Savings and Revenue Options, please contact us or visit: http://finance.senate.gov/sitepages/legislation.htm
Founded in 2000, eflex is one of the nation’s leaders in benefits administration employing a staff of over 80. The company specializes in Consumer Driven Healthcare (CDH) solutions including benefit plans such as FSAs, HSAs, HRAs, Transit, and COBRA. To learn more about eflex products and services visit http://www.eflexgroup.com.
Media Contact: Ric Joyner, CEO and Founder
Email: [email protected]