When employers were asked what holds employees back from enrolling in a Healthcare FSA, the number one deterrent – year after year – is a fear of losing money. In a survey conducted in partnership with Visa, which polled employers from enterprises and SMBs, this fact was confirmed yet again.
The second reason for not signing up for a Healthcare FSA is confusion about how it works. Employees often perceive the benefit as too complicated and are concerned that it’s hard to estimate medical expenses for the entire year.
As an employer, you can now address both of these enrollment barriers head on. By implementing the Healthcare FSA carryover option, you can allow employees to carry over up to $500 of unused FSA funds at the end of the plan year into the next. This simple move will:
1) Mitigate individuals’ fears about losing money;
2) Eliminate employees’ need to precisely predict out-of-pocket expenses a year in advance;
3) Increase your company’s FSA participation.
Our survey results showed that prior to offering Carryover, FSA enrollment remained static. However, when Carryover was introduced, 63% of respondents saw increased enrollment rates. And, the jump was significant, with employers seeing an average of 8% more employees signing up.
If you’re ready to add the Carryover option to your WageWorks Healthcare FSA, click here to get started.
Or if you’re still in research mode, check out our on-demand Webinar – “Everything you Need to Know about the Healthcare FSA with Carryover” – to learn more about what you can do to alleviate employees’ concerns, drive FSA participation, and achieve greater corporate tax savings.