Proposed Cadillac Tax Carve-out for FSA & HRA Plans

House and Senate Introduce Bills to Carve-out FSA & HSA Plans
from the Impending Cadillac Tax

Mark Schmersahl, Vice President of BeneFLEX and Board Member for the ECFC, Employers Council on Flexible Compensation, was in Washington D.C. last week attending an educational conference. While in D.C., Mark and his fellow ECFC members took the opportunity to lobby on the Hill for a carve-out of the FSA and HSA from the impending Cadillac Tax. This carve-out would allow employers to continue providing these benefit plans without a tax penalty. As a direct result of their lobbying efforts, the two bills below were created.  

Boustany Bill Would Amend IRS Code to Exclude Certain Health Arrangements
from Excise Tax

Rep. Charles W. Boustany, Jr. [R-LA-3]  introduced a bill this week that would amend the Internal Revenue Code of 1986 to exclude certain health arrangements from the excise tax on employer-sponsored health coverage (H.R.4832). The bill has been referred to the House Committee on Ways and Means.

To review the complete description of the bill visit:

Senator Thune Introduces Bill S.2698 – Preserving Consumer Health Accounts Act
of 2016

On Wednesday, March 16, 2016 Senator Thune introduced a bill for carve-out of FSA and HSA from the Excise tax for the ACA. This is something we have been working towards for the past year. We support full repeal of the Cadillac Tax, but a carve-out would allow your employees to continue to budget and pay for out of pocket health care with the FSA and HSA, but not push employers into the tax penalty phase.

To review a complete description of the bill visit:

For questions, contact BeneFLEX at (314) 909-6979 or