Flexible spending accounts (FSAs) are a wonderful way for employees to purchase
With enhanced communication, benefit leaders can educate and encourage employees to use their FSA funds wisely from now through year's end,
"It's a really good reminder for people to think about the things that they're running out of this summer, like sunscreen and allergy medicine," she says. "I have two kids, and am thinking about what they're going to need — first aid kits, band aids and Tylenol, Claritin — things that you can purchase with your FSA, that you're already buying every day, that you may not think about."
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Rouleau points out that
"Our data shows that people are spending about $1,600 a year on the products that we sell anyways," Rouleau says. "So when people realize that they can buy these products with their FSA dollars, it's really meaningful to them, and it really does make a big difference in how they plan and how they budget."
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Good ways to communicate
Sending out emails, putting posters up in office breakrooms and including FSA and HSA reminders in open enrollment meetings all help to keep these benefits top of mind.
Rouleau notes that it is also important for people to understand how to access their FSA administrator and balance information, as well as an list up-date-list on
"Wearables like health trackers are things that people may not realize are eligible," says Rouleau. "Hydrating electrolyte drink mix can be eligible if it's treating dehydration. We sell really high-tech products for your skin care routine, a popular mask that helps treat your acne and lots of different products for pain relief. There's thousands of products that you can buy with your FSA dollars."
FSA discussions should also be coupled with other benefit offerings, such as fertility and chronic care support, for which many associated products, from prenatal vitamins to diabetes test strips, are covered.
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Along with eligible purchases, balance details, and where to go with questions, employees also need to know about deadlines as well as optional extensions and roll-over rules. Seventy percent of plans have a December 31 deadline, but benefit leaders should double check, says Rouleau.
"Some employers give you a two-and-a-half month grace period to continue to spend down funds into the new plan year," she says. "Many employers offer you what's called a run-out period, which is three months after the end of the plan, to submit for expenses you incur during the prior year. And then some employers offer alternatively, what's called a rollover or carryover, where you can carry over as much as $660 from your 2025 year into 2026."
As employees look for more ways to save money, FSA reminders are an invaluable benefit that employers can use to boost financial, physical and mental wellness.
"It's so important for benefit leaders to really understand the plans that they're offering, because these are really valuable benefits to employees," she says. "If employees are getting the right information that they need at the right time, they're able to make the most of their plans."
