Are your employees aware they have less than a week to use up the remainder of their
While a majority of people enrolled in FSAs had a deadline of December 31, 2024, over a third of enrollees get an employer-provided grace period; they have until March 15 to spend what's left in their account. However, there's a good chance workers won't remember they're about to leave money on the table. In fact, 44% of account holders lose an average of $370 per year, according to the Employee Benefit Research Institute.
Funds can also go unused because employees may not know what to
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"A lot of people are aware that FSAs can be used for things like doctor visits, co-pays and prescription medicines," says Joe Giordano, compliance manager for the FSA Store. "But what a lot of people don't know is that FSA eligibility is pretty broad."
From high-tech health devices like blood sugar monitors and pulse oximeters to skincare products like sunscreen and red light therapy devices, FSAs can go a long way, underlines Giordano. He notes that even baby products like diapers, breast pumps and baby health monitors are FSA-eligible.
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Girodano advises benefit leaders to not only consistently remind employees about their FSA deadline — whether it's in December or March — but also share resources or lists that feature what services and products they can pay for with their FSA. If employers want to ensure their workers are getting the most out of their benefits, then they need to make sure their employees know how to take advantage of them.
"Communication is key, early and often," says Giordano. "Make them aware of deadlines, let them know whether they have that grace period extension and make sure they see the breadth of what's eligible with their accounts."
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Even if benefit leaders are worried they already dropped the ball this year, Giordano encourages them to send a company-wide message to employees and have managers remind their teams, as well. There's still time for employees to spend their FSA funds before Saturday.
"Employees are basically getting a second chance to spend their hard-earned dollars with the FSA grace period," he says. "But employer communication is a big part of that."
