"The 'use it or lose it' rule is counterproductive to all parties (the participant, the plan sponsor, and even the Treasury). It requires participants who have not utilized all of their plan contributions into their FSA to do a year-end dance of finding eligible items on which to spend the amounts that would otherwise be forfeitable. We even now see providers directly appealing to FSA participants to spend their soon-to-be-unused dollars with them (e.g. two or three pairs of prescription sunglasses, contact lenses, and additional prescription drugs, among many others). This goes against any public policy or plan sponsor attempt to try to link health care spending with better consumerism."

MORE >>