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While many companies offer Flexible Spending Accounts (FSAs) and/or a Health Savings Account (HSA) as a financial perk, according to a survey by OnePoll, most employees are confused about what these benefits can do for them. In fact, the survey’s findings show:
This is disappointing but fixable. So, how can we help employees understand the difference between an FSA and an HSA, and empower them to choose the best option for them? First, we need to clear the fog surrounding these plans, starting with the two key differences that are reflected in their names, spending versus savings accounts.
FSAs are designed to give employees a tax break—which is pretty sweet—but the pros of using an FSA often lose their luster when employees hear about the “use it or lose it” provision.
Ensure the fear of a money-spending deadline doesn’t overshadow what FSAs do well:
There are thousands of ways to spend FSA dollars so employees can turn their apprehension into anticipation and gain confidence that their funds won’t go to waste. Communicate the ease of finding eligible expenses by sharing a link to the FSA Store or IRS Publication 502 (medical and dental expenses) or IRS Publication 503 (dependent care).
A Health Equity survey found that at least 50% of HSA enrollees use their HSA balance only to pay for current medical expenses—essentially using their HSA as an FSA or “spending” account. Of course, an HSA, like an FSA, may be used to pay for current, eligible expenses with pre-tax dollars; however, an HSA’s value lies in its flexibility, allowing employees to use the money now or save for the future by rolling over the balance year after year.
To maximize the value of an HSA, it’s helpful to view the account as:
Employees can find out more about eligible HSA expenses by visiting the HSA Store or IRS Publication 969.
FSAs and HSAs are powerful financial tools. But if employees don’t know how to use them, they’re missing out on a valuable money-saving benefit.
Taking time each year to ensure that your team understands how each plan may benefit them will help employees understand the true value of their options, be more proactive in their healthcare, and get the most of their benefits for themselves and their families.
Need help getting the word out about FSAs and HSAs? We can help! Contact us to get started.
Related article: Are Your Employees Still Confused about HSAs and FSAs? Let’s Fix That
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Providing the highest level of hospitality is important to us. Surveys give us the feedback we need to continually meet this goal. We’re pretty proud of our Net Promoter Score (NPS). Here’s why:
NPS is based on the percentage of survey respondents who are promoters, passives, and detractors:
Scores range from -100 to 100. The higher the score, the higher the percentage of promoters versus detractors.
| Above 0: Good |
| Above 20: Favorable |
| Above 50: Excellent |
| Above 80: World Class |
*Bain & Company, creators of NPS
