Having the ability to make choices in your benefits coverage is not always an option for employees. With a Flexible Spending Account (FSA), employers empower their employees to assess their individual needs and essentially build their own coverage. Today, let’s explore how an FSA is structured and why it can be a great option for employers.

What Is a Flexible Spending Account?

In our last blog post, we explained what a Flexible Spending Account is and how it works. Here’s a brief refresher in case you missed it! A Flexible Spending Account allows employees to allocate their benefit dollars between a Health Spending Account (HSA) and a Wellness Spending Account (WSA).

Recognizing Everyone Has Different Needs

As an employer, it’s easy to overlook that not everyone’s needs are the same. Some employees may require more dental work, such as braces for a child, while others need regular chiropractor visits to maintain their physical health. Meanwhile, some employees might only need basic dental cleanings twice a year and rarely use other benefits.

Acknowledging that everyone has unique needs can provide valuable insight into what your team truly requires. For instance, employees who don’t use traditional dental, health, or vision benefits extensively may benefit from a WSA. This account could cover expenses like a gym membership or monthly multivitamins, enabling them to make the most of their benefits in a way that suits their lifestyle.

Offering a Solution to Meet Diverse Needs

Once your plan includes both an HSA and a WSA, you might wonder: how do you decide how much to allocate to each account? Employers can design the plan with their own specifications, providing employees with a set amount of benefit dollars for both the HSA and WSA.

Alternatively, you can introduce a Flexible Spending Account that gives employees the power to allocate benefit dollars as they see fit. The employer sets an overall plan maximum, along with a minimum and maximum percentage that can be allocated toward the wellness portion. Employees then have 30 days before the plan’s renewal to decide their allocation percentages.

What happens if an employee doesn’t make a selection within the 30 days? Don’t worry—employers can set a default percentage to ensure the plan continues smoothly. Providing this level of flexibility demonstrates that you value your employees’ individual needs and want to empower them with choices that matter.

Why Does Choice Matter?

Imagine going to buy a car, only to have the dealership choose any vehicle they wanted and sell it to you. Would you be happy? Likely not. You want the chance to pick a car that fits your specific needs and preferences.

The same concept applies to health benefits. While employees appreciate having benefits, giving them the power to make choices tailored to their needs can make a significant difference. Empowering employees through flexible benefits fosters a sense of ownership and satisfaction, which often reflects positively in their work and overall morale.

The Impact of Flexible Benefits

Providing benefits is always appreciated, no matter the setup. However, taking the extra step to create unique opportunities that cater to individual needs elevates your workplace environment. By introducing flexibility in benefits, you may be surprised to see improvements in employee morale, productivity, and loyalty.

Ready to Get Started?

Do you have questions about our Quikcard FlexPlan or do you need help creating a tailored benefits program? Contact us today, and we’ll work with you to design a plan that meets your organization’s needs.

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