With mid-term elections approaching and the odds generally favoring a Republican takeover in the Senate to go with control of the House, the new Congress is seen as having a good reason to move ahead on the Personal Health Investment Today Act that would expand eligibility requirements for pre-tax medical savings accounts to include many sporting goods products as well as other fitness-related personal expenses such as lessons, entry fees and the like.
SFIA views the PHIT Act, its top legislative priority, as a bi-partisan measure with 50 co-sponsors, of whom 26 are Democrats and 24 are Republicans. Realistically, Republicans won’t elect a veto-proof majority in the Senate so they will need to focus on changes to Obamacare that the president and at least 60 Senators are willing to agree to in order to get legislation to the Senate floor. Too, it would not change the pre-tax limits on flexible spending accounts at $1,000 for individuals and $2,000 for families and could be seen by Republicans as a tax cut if more taxpayers take advantage of the program. It has appeal for Democrats because some of the more likely users are young adults who tend to vote Democratic, are already paying for these activities and would thus be tax advantaged.
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