As year-end draws closer, countless employees unknowingly leave money on the table—money they’ve set aside for healthcare through their Flexible Spending Accounts (FSAs). For employees, it means paying out of pocket for expenses that could have been purchased with pre-tax dollars. For HR teams, it’s a missed opportunity to strengthen their benefits communications and reinforce their commitment to employee wellness.
Employees often lose track of their FSA balances or are unsure what expenses qualify for reimbursement, especially as year-end deadlines loom. But why does this happen so often? And what can employers do to ensure their workforce makes the most of their FSAs before it’s too late?
Why Employees Forget About FSAs
Imagine you’re a busy professional juggling year-end projects, holiday plans, and personal responsibilities. Between the chaos, it’s easy to lose sight of your benefits—especially something as specific as your FSA balance.
This scenario plays out for countless employees every year. Many are confused about what expenses qualify for reimbursement. Others simply forget about their accounts amid the whirlwind of December activities. And when HR teams fail to provide clear reminders or guidance, the likelihood of unspent funds increases dramatically.
The stakes are high: when FSA contributions go unused, employees feel frustrated, and employers risk dissatisfaction with their benefits. However, by fostering a culture of benefits awareness and communication, HR can turn things around.
Using Technology to Simplify FSA Communications
In today’s fast-paced, digital-first world, getting employees’ attention is no small feat. But the right tools can make all the difference. Emails are practical and helpful for some, but digital communications like Flimp’s Digital Postcards offer a more engaging solution. These mini-microsites are designed to simplify communication of key ways to take advantage of benefits, and remind employees to act before the deadline.
We’ve put together a generic FSA Digital Postcard to demonstrate the power of a clear benefits communication.
- View and share this Digital Postcard message with your employees
- Or post this QR code to allow employees to access the postcard on their smartphones.
- If your employees are used to visiting your corporate intranet site, you can use this code to embed the Digital Postcard on your intranet or benefits microsite:
<iframe src="https://flimp.live/FSA-UseItOrLoseIt-em?em=Y" webkitallowfullscreen mozallowfullscreen allowfullscreen frameborder="0" style="width: 100%; height: 1159px;"></iframe>);
- You can also download the thumbnail from here and link it to this URL to send in an email to all employees.
The combination of visually interesting educational content with tools to track engagement, helps HR teams create customizable, multichannel reminders about FSA deadlines, eligible expenses, and helpful resources. A well-designed Digital Postcard could include:
- A countdown to the FSA spending deadline.
- Links to the IRS FSA guidelines or resources like the FSA Store.
- A short list of unexpected FSA-eligible expenses to inspire last-minute purchases.
By leveraging HR and benefits communication technology, employers can deliver timely, impactful messages that cut through the noise and help employees take action. And with engagement tracking built in, it’s easy to demonstrate the value they provide.
How Employers Can Drive Better FSA Engagement
Clear, consistent communication is the cornerstone of effective benefits engagement. Consider these strategies to help employees make the most of their FSAs:
- Regular reminders: Send reminders through multiple channels—email, text, or even Slack—throughout the year, but especially leading up to critical deadlines.
- Workshops and webinars: Host Q&A sessions to clarify FSA rules and provide actionable tips.
- Step-by-step guides: Create easy-to-read materials explaining how to check balances, submit claims, or spend remaining funds.
- Leverage Flimp’s Digital Postcards to send deadline reminders in an engaging, easy-to-digest format. View and share this free FSA deadline reminder Digital Postcard.
These strategies not only prevent benefits from going unused or under-appreciated, but also reinforce the role HR teams can take in supporting their fellow employees’ financial and personal wellness.
Six Creative Ways to Spend FSA Dollars
While most employees understand that FSAs cover basics like copays, prescription medications, and contact lenses, there are numerous lesser-known eligible expenses that can help employees maximize their savings. By educating your team on these options, you can encourage thoughtful spending that aligns with their needs. Here are some overlooked ways to use FSA funds:
1. Support Wellness with Alternative Therapies
Acupuncture, chiropractic care, and even massage therapy (when prescribed by a doctor) are eligible expenses that can promote stress relief and physical wellness.
2. Invest in Preventive Health and Safety
Preventive care items like blood pressure monitors, digital thermometers, and even diabetes management supplies are FSA eligible. Employees can also stock up on first-aid kits or upgrade their home medical supplies.
3. Protect Skin and Vision
Sunscreen with SPF 15 or higher is eligible for FSA reimbursement, making it an excellent year-round purchase. Employees can also invest in prescription sunglasses or blue-light-blocking glasses, particularly for those spending long hours in front of screens.
4. Plan for Travel or Emergencies
For employees who are frequently on the go, FSA funds can cover travel health kits, motion-sickness remedies, and even costs associated with vaccinations required for travel. These practical uses ensure that employees are prepared for unforeseen events or vacations.
5. Enhance Family Wellness
FSAs can be used for items like breast pumps, prenatal vitamins, baby monitors, and other family-related health expenses. Employees caring for elderly parents may also be eligible to use FSA funds for medical alert systems or in-home health supplies.
6. Explore Mental Health Resources
Mental health services such as counseling sessions or teletherapy platforms are FSA eligible. This makes it easier for employees to access support when navigating personal or work-related challenges.
Encourage employees to browse resources like the FSA Store for a categorized list of eligible products. By exploring creative ways to spend their funds, employees can avoid forfeiting money while improving their overall wellness.
Building a Culture of Benefits Awareness
FSAs are a powerful financial tool—but only if employees fully understand and engage with them. For employers, the goal isn’t just to send a reminder email in December and call it a day. Instead, it’s about creating a workplace culture where benefits awareness and year-round communication is woven into the fabric of daily operations.
Think of this as an ongoing conversation, supported by:
- Education: Offer year-round resources, such as a monthly “Benefits Spotlight” newsletter.
- Accessibility: Ensure employees can easily access their FSA balances and reimbursement instructions online.
- Inspiration: Highlight examples of how others are using FSAs to improve their health, families, and lives.
When employers go the extra mile to support their workforce in maximizing their FSAs, the benefits go beyond dollars and cents. Employees feel valued, supported, and empowered to make better financial decisions.
Don’t Let FSA Dollars Go to Waste
With the clock ticking toward the year-end deadline, now is the perfect time for employers to step up their communication efforts. By leveraging technology, sharing creative spending ideas, and fostering a culture of benefits awareness, companies can ensure their employees maximize their FSA contributions.
The result? Fewer forfeited funds, greater satisfaction with workplace benefits, and a stronger bond between employees and employers. It’s a win-win scenario that underscores the value of clear communication and proactive engagement.
Start making a difference today with a step toward better financial wellness for your workplace.
