St. Louis, MO

Wednesday, August 19, 2009

FOR IMMEDIATE RELEASE

For information, contact:

Linda Gladden (314) 993-1700, ext. 535

lgladden@aaortho.org

FLEXIBLE SPENDING ACCOUNTS CONTRIBUTE TO AFFORDABILITY OF HEALTHCARE, BUT MAY BE IN JEOPARDY

ST. LOUIS— The future of flexible spending accounts (FSAs) may be in jeopardy as Congress considers healthcare reform. FSAs were authorized by Congress in 1978 as a way to off-set healthcare costs not covered by insurance. They can be used toward pharmacy and doctor visit co-pays, for some over-the-counter medicines and for services not fully covered by insurance such as eyeglasses and orthodontic treatment. FSAs help to make healthcare affordable for working American families.

In an August 2009 survey conducted by the American Association of Orthodontists (AAO), nearly 65% of orthodontists responding to the survey reported that the majority of their patients use FSA money to fund all or part of their orthodontic treatment. "Without FSA funds, it is possible that people will postpone or do without medicines or services that are not completely covered by insurance," said Robert J. Bray, DDS, MS, president of the AAO. "If FSAs are capped or eliminated, healthcare immediately becomes less affordable to the average American family. "

If Congress caps or abolishes FSAs, families' out-of-pocket healthcare expenses will go up. So will their taxes. Funds in FSA accounts are not subject to tax. So any monies families would otherwise have set aside to pay for items and services covered by their FSAs will be taxed at each taxpayer's tax rate. "This becomes a double whammy for families—higher out-of-pocket costs and higher taxes," Dr. Bray observed.

Members of the public interested in preserving FSAs are encouraged to notify their members of Congress. Visit www.Senate.gov and www.House.gov to find names and contact information for your state and Congressional district. Tell Congress to keep your healthcare out-of-pocket costs and taxes down by upholding FSAs.

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Pam Paladin

Marketing and Member/Consumer Relations Manager

American Association of Orthodontists

St. Louis, MO

314-993-1700

314-997-1745