New bill could restrict controversial FSA, HSA reimbursements

The House Ways and Means Committee just approved a new bill that could halt the tax-free reimbursement of abortion expenses from flexible spending accounts (FSAs) and health savings accounts (HSAs).
If the bill were to make it out of Congress, reimbursement for most abortion-related expenses would be added to an FSA/HSA participant’s taxable income. Currently, abortion-related reimbursements are treated like any other covered medical expenses.
The bill passed the committee by a 22-14 vote, reported Business Insurance.
It will now go before the full House of Representatives.
In the bill, there are a few exceptions in which abortion reimbursements would remain tax free — such as:

  • If the pregnancy was the result of rape or incest, and
  • If the woman suffered from a disorder, injury or illness that a physician deemed harmful enough to place her in danger of dying unless an abortion was performed.

In addition, the bill would prevent individuals from including abortion-related medical expenses in the equation when adding up itemized medical expenses for tax deduction purposes.
Are you in favor of this piece of legislation? Share your opinions in the Reply box below.