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Public Statements

Larson Applauds Change to "Use-or-Lose" Rule, Helping Families Save For Medical Expensese


Location: Hartford, CT

Today, Congressman John B. Larson released the following statement after the U.S. Department of Treasury announced a modification to the "Use-or-Lose" rule for health flexible spending arrangements (FSA). An estimated 14 million families utilize health FSAs to save tax-free money for medical expenses.

Currently, participants in health FSAs are forced to forgo all unused amounts within their FSA at the end of each year. Following the change, up to $500 of unused amounts can now be carried over to the next year.

"Medical expenses are some of the costliest and most difficult to predict for millions of Americans," said Larson. "For years the use or lose rule has unfairly prevented families from utilizing money they have saved for these costs. I applaud the Treasury for this modification that will help families in Connecticut and across the nation pay for the services and care they need."

Larson has for years advocated for a change to the "Use-or-Lose" rule, previously introducing legislation to provide a similar carry over of unused benefits in health flexible spending arrangements or a cash-out of funds

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