This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

A $6 Billion Employee Benefit May Dry Up

"Many who rely on flexible-spending accounts, including individuals and families battling chronic conditions with high out-of-pocket costs, will lose the full value of the benefit and be forced to pay higher taxes and health-care costs," says Joe Jackson, chairman of the Save Flexible Spending Plans coalition.

"There is always the danger when you are doing something as large as health-care reform of unintended consequences," says Dennis Triplett, chief executive of UMB Bank Healthcare Services and chairman of the Employers Council on Flexible Compensation (ECFC), a non-profit organization that advocates for expanding tax-advantaged employee-benefit programs. "When you are trying to reform a sixth of the economy in one sitting, you may well be doing something that looks appropriate but find out that you have caused angst and pain."

UMB Bank Healthcare Services, a subsidiary of UMB Financial Corp. (UMBF - Get Report), provides custodial services for health-savings plans to health-care providers, including Humana (HUM - Get Report) and Assurant (AIZ - Get Report). It recently surpassed $185 million in HSA assets.

According to the Employers Council on Flexible Compensation, 40% of U.S. adults age 20 to 64 have at least one chronic disease. Those individuals, even when insured, face thousands of dollars a year in out-of-pocket costs. FSA is broken down as follows: doctor visits and hospital deductibles (43%), medicine (26%), dental needs (21%) and vision care (10%).

Triplett is among those demanding that the planned cap on contributions be lifted and, in the future, be indexed to the rate of inflation.

-- Reported by Joe Mont in Boston.

2 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG
AIZ $59.84 -0.42%
HUM $180.19 -1.20%
UMBF $52.51 0.02%
AAPL $132.65 1.82%
FB $81.91 0.47%

Markets

DOW 18,037.97 -42.17 -0.23%
S&P 500 2,108.92 -8.77 -0.41%
NASDAQ 5,060.2460 -31.8390 -0.63%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs