HomeResourcesArticles
October 8, 2021

Five Ways to Increase FSA Participation

Dawson McPherson
Dawson McPherson
Senior Content Marketing Specialist

A flexible spending account (FSA) is a great way for your employees to save money on health expenses. As an employer, you also save money on FICA taxes for each employee who contributes to an FSA. 

Despite the savings and peace of mind FSAs can provide, some employees are hesitant to enroll because of: 

•  Uncertainty around which expenses are eligible

•  The use-it-or-lose-it rule

•  Concerns of not being able to afford another payroll deduction

If enrollment in your FSA plan is low, here are five benefits you can share with your employees to move the needle.

Rollover
With this feature, your employees can roll over up to $550 of unused funds to the next plan year. This can provide peace of mind for those who have concerns about losing money. If you don’t currently offer a roll over, talk to Ameriflex about adding it to your plan.

Funds Available Day One
With an FSA, employees do not have to wait to accrue their funds. The entire contribution is available on the first day of the plan year. This is especially helpful for individuals who may have  medical expenses toward the beginning of the year.

Pre-Tax Savings
Every dollar an employee contributes to their FSA lowers their taxable income. That means if they earn $40,000 a year and contribute $2,750 to an FSA, only $37,250 of their income is subject to tax. That’s an average savings of over $800 per year, depending on their tax situation.

Eligible Expenses
There are hundreds of FSA-eligible products and services, such as prescriptions, over-the-counter medicine, feminine care products, glasses, contacts, LASIK, dental care, braces, copays for doctor office visits, and more. Employees can also use their Ameriflex Debit Mastercard® at the FSA Store. It’s an online shop stocked exclusively with FSA-eligible expenses.

Complimentary ID Theft Protection
All Ameriflex cardholders get complimentary ID Theft Protection, courtesy of Mastercard®. It only takes a few minutes to register and gives your employees access to emergency wallet replacements, ID theft alerts, expert resolution services, and credit monitoring.

To learn more about the benefits of FSAs, check out our Ultimate FSA Guide.

Other Recent Posts
What is ACA Compliance? The Affordable Care Act requires organizations to offer affordable insurance with minimum essential coverage and file the corresponding forms by the designated deadlines. 2023 ACA Compliance Changes & Penalties What is the compliance threshold? The ACA mandates that large employers, those with over 50 full-time equivalent employees, offer affordable minimum value...
Why businesses are beginning to see the need. Organizations are facing more pressure than ever to strengthen their employee benefits packages to stay competitive in the marketplace, find top talent, and retain their best employees. But there’s more to consider than just offering a variety of benefits. When organizations fail to factor in compliance, the...
The beginning of the plan year is the best time to map your benefits compliance strategy. As Dale Carnegie said, “An hour of planning can save you 10 hours of doing.”   This tip is definitely true for employee benefits compliance, and businesses are learning that it’s an unavoidable and essential aspect of maintaining a...
Stay Updated

Join us to stay on top of the latest healthcare news, legislation and product features from Ameriflex

We value your privacy
We will not rent or sell your information

Chat