Cater to your entire workforce with FSA/HSA eligibility

Open enrollment is the perfect time to share with employees the variety of ways they can feel stronger, healthier, and better cared for while saving money and achieving their health and wellness goals. Employees everywhere want to make smart, confident choices during open enrollment. Yet nearly half say there are elements of their benefits package they do not fully understand. That’s why, even though flexible spending accounts (FSAs) and health savings accounts (HSAs) have been around for many years, it pays to remind employees each year during open enrollment – and throughout your plan year – about the health and tax advantages these accounts offer.

Whether your company’s open enrollment period is underway or just around the corner, consider these tips to improve employee literacy about their health benefits and how to make the most of their FSA or HSA.

Talk about everyday eligibility. Many employees do not know that they can use FSA and HSA funds to pay for common healthcare products and services they use every day. As part of your open enrollment communications, introduce employees to the broad eligibility of these tax-free accounts with a searchable eligibility list. From surprising items like high-tech health devices to staples like bandaids, pain medication and menstrual care products, the variety of eligible items delivers something for everyone. According to insights from Health-E Commerce, the average household spends $1,600 each year on items that could be purchased with FSA or HSA funds. That correlates to an estimated $480 in tax savings if an employee used their tax-free funds. (Note: This is based on a tax rate of 30%, which will vary by individual.)

Use tax-free funds to address workplace health and safety. As your team conducts open enrollment meetings and communications, take time to showcase the types of eligible products and services that are most relevant to your employee population. For example, if your employees are on their feet all day, alert them to eligible items like customized orthotics that can ease foot, leg and back pain. For employees whose jobs are very physical, such as landscaping, construction or manufacturing, you may want to highlight products that soothe sore muscles such as hot and cool packs, pain creams and gels, infrared light therapy devices, wraps and braces, or deep tissue massagers. Because achieving and maintaining a healthy weight is an important factor in musculoskeletal health and a contributing factor to many other health conditions, employees may want to use FSA and HSA funds to purchase a body analysis scale that monitors body fat, body mass (BMI), muscle mass, bone mass, basal metabolic rate (BMR), and more.

Match eligibility education to employee demographics. To make FSA and HSA eligibility more relevant to employees, consider matching eligibility education to the demographics of your employee population. If you have a large percentage of employees who are starting or expanding their families, educate them about products for nursing mothers and health products for babies of all ages, including baby health monitors, diaper rash cream, and Boogie Wipes. Families with older children can use FSA and HSA funds for things like acne medications and acne light therapy devices, contact lenses and glasses, or high-frequency dental pod cleaners for retainers, aligners, dentures, and even a range of night guards for clenchers and grinders. Many women may also appreciate the range of products that support menopause and its symptoms.

Related: Maximizing HSA participation by building a financially literate workforce

Fill gaps in health coverage with FSA- and HSA-eligible telehealth services. Encouraging the use of telehealth services can ensure that employees get the care they need, when they need it, which can reduce potential health complications down the road. For example, employees will be pleasantly surprised to learn that if there is a medical need, they may be able to purchase prescription weight-loss medications with their FSA or HSA when prescribed by a doctor; personalized prescription treatments for acne, rosacea, and other skin conditions; personalized allergy medications; invisible dental aligners and orthodontia services; prescription treatments to manage menopause symptoms, and more.

As your HR team is showcasing what’s new for workplace benefits next year, don’t forget to include information about your FSA and HSA; the benefits that can truly be tailored to the needs of each employee. Not only will this information increase employee engagement, you’ll have the satisfaction of knowing you’re supporting employee health and wellness while helping employees reduce their taxable income.

Susan Elliott-Bocassi is senior vice president of operations for Health-E Commerce, parent brand to FSA Store, HSA Store, and Caring Mill.