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Open Enrollment Center

Employee Benefits

Consumer-Directed Benefits

What are Consumer-Directed Benefits?

If your employer offers Flexible Spending Accounts (FSAs), Health Savings Accounts (HSAs), or Commuter Benefits, you may be wondering how much you can save, what expenses are eligible, and how easy are they to use.

Why Does My Employer Offer Them?

Consumer-Directed Benefits, or CDBs, are designed to give you a tax break and help you save money on expenses that you’re currently paying for out of pocket. These programs enhance the benefits package offered by your employer.

Enrolling in CDBs is completely optional. Your employer offers them for these key reasons:

  • To help you save money. The main advantage of enrolling in CDBs, such as an HSA or FSA, is that you can save money. CDBs allow you to set aside money from your paycheck before taxes are taken out, and then you use those funds to pay for certain expenses, like doctor copays or prescriptions. As a result, you reduce your taxable income, allowing you to take home more of your hard-earned dollars.
  • To keep you as healthy as possible. A Healthcare Account, such as an HSA or FSA, allows you to use pre-tax dollars (essentially, paying less) for routine care, providing additional incentive to stay on top of your health needs. Employees who are satisfied with their benefits are more likely to visit the doctor for an annual checkup and avoid putting off important screenings such as mammograms and vision exams.
  • To retain you as an employee. While your salary is certainly important, benefits matter a great deal, too. Pre-tax benefits are a perk everyone should take advantage of, so determine how they can be a fit for you and your family.
  • To help you meet your financial goals. Looking to manage your finances better? Concerned about increasing out-of-pocket medical expenses? CDBs are a great way to better manage out-of-pocket costs for healthcare, dental care, vision care and more. If a Health Savings Account is part of your benefits package, consider how the tax advantages can help you save even more for retirement.
  • To help you take better care of your loved ones. If you have children or other eligible family members who depend on you throughout the year, a Dependent Care FSA can make child or adult daycare more affordable and allow you to take care of your loved ones while you go to work. Plus, an HSA or Healthcare FSA can be used to pay for eligible healthcare expenses not just for you, but for your qualifying children and spouse as well.

Ready to start saving? Simply sign up during your Open Enrollment period. Contact your HR representative or benefits administrator to find out when Open Enrollment begins.

Employee Resource Center

Ready-to-use tools to help you make the most of your WageWorks benefits.