After surviving the churning waters of Open Enrollment, you deserve to exit the life raft and head for a lounger on deck. Don’t wait too long, though, to tell employees how to make the most of the benefits they just signed up for — how to “shop” for care, use an HSA/FSA, find help, and more. You worked hard to secure these benefits, but employees can only appreciate the benefits they’re aware of and know how to use.
Early December or January, send out a multi-channel communication encouraging employees to understand and use their benefits. Here are some suggestions of what to highlight.
Make the Most of Tax-Advantaged Accounts
Depending on an employee’s tax bracket, health savings accounts (HSAs) and health care flexible spending accounts (FSAs) can generally save employees between 20% and 30% on eligible health care expenses. To show these savings visually, a chart is helpful.
| With HSA/FSA | Without HSA/FSA | |
| Income set aside for annual family health care expenses | $4,000 | $4,000 |
| 27% combined state and federal income taxes | 0 | -$1,080 |
| Money that can be used for health care expenses | $4,000 | $2,920 |
HSAs: Employees set their contribution amounts during enrollment, and now’s the time to remind them of a few details.
- You can’t be reimbursed for an amount above what’s in the account (funded each pay period)
- You can change contributions at any time, but don’t go over the IRS limits (which include company contributions)
- Use the funds now, or save for health care in retirement (withdrawals not taxed like 401(k)s are)
- Invest your funds to grow the account over time (earning also not taxed)
When it comes to investing HSA funds, a survey found that only 25% of employees agree their employer provides resources to help them understand. That same survey by HSA Bank shows how employees use their HSA funds:
- 50% to pay for copays and office visits
- 40% to save for long-term health care expenses
- 39% to pay for short-term health care expenses
- 20% to invest
In our monthly blog series about year-round comms, we featured messaging for HSA and FSA engagement in June. No matter the month, the messages are effective.
BONUS! In that blog you’ll also find a downloadable comms calendar and examples of simplified HSA pages from benefits guides.
FSAs: It’s not uncommon for employees to “set and forget” a health care FSA. They set their contribution amount, then in November find themselves trying to spend all the money before year-end. A reminder communication with these topics can help spread out that spending:
- This is a use-it-or-lose-it account, so remember to use the funds.
- The site fsastore.com is a great place to shop for eligible items.
- The account is fully funded up front, so you don’t need to wait.
Get the Best Value from the Medical Plan
Help employees get the best care at a fair price. Many people don’t understand that an MRI at the local hospital might be $5,000, but at the clinic around the corner that same MRI is $2,400. Remind them of these options:
- Compare or estimate costs ahead of time, if your medical and prescription carriers have such tools online.
- Look for non-hospital-based imaging, labs, and outpatient facility options.
- Use in-network providers whenever possible.
- Use virtual visits, and learn how to get the right care at the right time.
Use the Other Benefits Available
Highlight the full services of your EAP, and go beyond counseling. Many EAPs include some level of financial and legal advice, plus help finding everyday services like child care, housekeeping, and more. Promote benefits they can sign up for anytime — pet insurance, ID theft protection, etc. Remind them of automatic benefits like a discount marketplace.
This is a good time to remind employees to designate beneficiaries for a 401(k) and life insurance.
Seek Help If You Have Questions
Assure employees there are places to find answers, and you’re there to help. In almost all communications, point employees to the “source of truth.” Maybe it’s a link to a benefits portal or your benefits guide. Provide a phone number and email for your benefits center. Consider adding a link to your SPD.
Now is also a good time to remind you that year-round communication is key if you’re looking to increase benefits engagement. It can’t be a “one-and-done” effort centered around Open Enrollment. What will you promote in spring and summer? Start planning early…our downloadable monthly benefits calendar can help.
