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Representative Darin LaHood

Representing the 18th District of Illinois

Reps. LaHood and Wenstrup Applaud IRS Guidance to Provide Flexibility for Individuals with FSAs and DCFSAs

May 13, 2020
Press Release

PEORIA, IL— Congressmen Darin LaHood (R-IL) and Brad Wenstrup (R-OH) today applauded the Trump administration for announcing guidance to provide relief to individuals with Health Flexible Spending Accounts (FSAs) and Dependent Care Flexible Spending Accounts (DCFSAs). The announcement came after Congressmen LaHood, Wenstrup, and their colleagues sent a bipartisan letter to the Trump administration requesting additional flexibility for FSA beneficiaries. 

“The announcement by the Trump Administration to give patients who utilize FSA and DCFSA accounts more flexibility is welcome news for my constituents,” said Rep. LaHood. “COVID—19 is leaving an impact on all Americans and families shouldn’t be penalized or lose healthcare savings because of this unexpected pandemic. I am pleased that the Administration incorporated some of our recommendations, and I will continue to work with my colleagues to ensure families get needed relief in the wake of COVID—19.”

“This coronavirus pandemic has thrown a wrench in many of our plans, and individuals and families with Health and Dependent Care Flexible Spending Accounts shouldn’t be penalized because of these unforeseen events. I thank the administration for incorporating some of my recent recommendations to give more flexibility for FSA and DCFSA utilization. As this crisis wears on, Congress must be ready to make additional statutory changes as needed so that Americans can fully utilize their savings, and I look forward to that continuing work,” said Congressman Wenstrup. 

Today the IRS announced it will provide taxpayers greater flexibility by:

  • Extending claims periods for taxpayers to apply unused amounts remaining in a health FSA or dependent care assistance program for expenses incurred for those same qualified benefits through December 31, 2020.
  • Expanding the ability of taxpayers to make mid-year elections for health coverage, health FSAs, and dependent care assistance programs, allowing them to respond to changes in needs as a result of the COVID-19 pandemic.
  • Applying earlier relief for high deductible health plans to cover expenses related to COVID-19, and a temporary exemption for telehealth services retroactively to January 1, 2020.

Last month, Congressman LaHood, along with Congressmen Brad Wenstrup (R-OH-02), Thomas Suozzi (D-NY-03), Bradley Schneider (D-IL-10), Mike Kelly (R-PA16), Kenny Marchant (R-TX-24), Daniel Kildee (D-MI-05), Ron Estes (R-KS-04), John Larson (D-CT-01), Ron Kind (D-WI-03), and Drew Ferguson (R-GA-03), wrote to the Trump administration asking for temporarily flexibility for FSA and DCFSA accounts.