NU Online News Service, May 13, 2004, 1:32 p.m. EDT, Washington – The U.S. House of Representatives wants to free some of the cash stranded in cafeteria plans and flexible spending accounts.[@@]
The House has voted 273-152 to approve H.R. 4279, a bill that would let employees contribute up to $500 in unused funds in cafeteria plans and FSAs to health savings accounts.
Under the bill, shifting funds to HSAs from cafeteria plans and FSAs would not affect the tax-exempt status of the cafeteria plans or the FSAs.
The House also voted 229-197 to approve H.R. 4280, which is the latest attempt to pursue medical liability reform.
H.R. 4280 would place a $250,000 cap on compensation for noneconomic damages, such as pain and suffering, that result from medical malpractice.
In addition, the bill would limit punitive damages to $250,000 or 2 times the amount of compensatory damages, whichever were greater.