When it comes to employees’ hard-earned dollars, the words “use it or lose it” can stop an employee in their tracks when it comes to signing up for a Healthcare Flexible Spending Account (FSA). In fact, the fear of losing unused funds is the number one deterrent to Healthcare FSA enrollment.
The good news is that decreasing the risk of losing funds for employees can have a positive impact on your enrollment figures – increasing participation, as well as your corporate tax savings. By switching to a Healthcare FSA with the Carryover option (which allows up to $500 to be carried over from one plan year to the next), you eliminate the major barrier to enrollment and pave the way for individuals to save money on everyday healthcare expenses.
That’s why so many companies have made the shift already. According to a survey we conducted in partnership with Visa, 60% of employers stated they plan on offering a Healthcare FSA with Carryover in 2015, compared to 49% in 2014. And, many early adopters are already seeing the payoff. The same survey found that 63% of employers estimate that offering a Healthcare FSA with Carryover has increased enrollment by 8% this year, up from 4% last year.
Are you ready to make the move and watch your enrollment numbers rise? We’re here to help. To add the Carryover option to your existing WageWorks Healthcare FSA or for more information, simply visit us here or contact your Relationship Management team.