As a benefits administrator, one of your key responsibilities is to ensure employees maximize their benefits, including their flexible spending accounts (FSAs). As the year-end approaches, many employees may have remaining FSA funds they need to use before they expire. Your role in educating and guiding them can make a significant difference in helping them avoid losing hard-earned money while also ensuring they take full advantage of their benefits.

The holidays can be a busy time, and employees may not be thinking about their FSA balances. Sending timely reminders and offering practical guidance can help them make the most of their funds. Here are some effective ways to encourage employees to use their FSAs before the deadline:

• Send regular reminders: Use email, internal newsletters or workplace messaging apps to remind employees about their FSA balance and the upcoming deadline.
• Host informational sessions: Consider offering short webinars or Q&A sessions to educate employees on eligible expenses and how to use their funds.
• Provide a list of eligible expenses: Many employees may not be aware of the wide range of items and services they can purchase with their FSA. Sharing a comprehensive list can help them make informed decisions.
• Offer one-on-one consultations: Some employees may have specific questions about their FSAs. Providing an opportunity for personalized assistance can ensure they use their funds appropriately.
• Encourage planning for medical needs: Remind employees that now is the time to schedule any remaining doctor, dental, vision or chiropractic appointments before their FSA funds expire.

Helping employees understand the various ways they can use their FSA funds can be impactful. Here are some practical and often overlooked ways they can spend their remaining balance:

Healthcare essentials: Employees can stock up on items they or their dependents regularly use, such as:

• Prescription and OTC medications (cough syrup, pain relievers, allergy meds, etc.)
• Menstrual products
• First-aid kits and medical supplies
• Sunscreen and lip balm with SPF

Vision and eye care:

• Eye exams
• New prescription glasses or sunglasses
• Contact lenses and solutions

Wellness and preventive care:

• Chiropractic treatments
• Acupuncture (if eligible under plan)
• Physical therapy sessions
• Blood pressure monitors
• Electronic thermometers

Family and maternity care:

• Breastfeeding equipment
• Pregnancy and fertility testing
• Birth control

Home and personal health:

• Humidifiers
• Nasal irrigation devices
• Deep muscle massagers
• Weighted heating pads
• Home modifications for safety due to a medical condition

While encouraging employees to utilize their funds, it’s essential to remind them that all purchases must be for the account holder or their dependents and must serve a medical purpose. They should aim to buy reasonable, consumable amounts rather than excessive stockpiles, as large quantities — such as a year’s supply of OTC medication — may not be eligible for reimbursement. Additionally, certain items may require a prescription or a Letter of Medical Necessity to qualify for FSA spending. Ensuring employees understand these rules can help them make informed decisions and prevent any unexpected denials of reimbursement.

Making it simple and convenient for employees to use their FSA funds can go a long way in ensuring they take full advantage of their benefits. Providing direct links to FSA-eligible stores or online retailers, such as shopwealthcare.com, can help employees quickly find qualifying products. A checklist of last-minute purchases can serve as a helpful guide, ensuring they don’t overlook essential items before the deadline. Encouraging employees to reach out to their HR department or benefits provider with any questions can also provide them with the confidence and clarity needed to navigate their remaining FSA balance effectively.

By actively guiding employees on how to use their FSAs, you’re not only helping them maximize their benefits but also demonstrating the value of your company’s benefits program. A little effort in educating and reminding employees can go a long way in ensuring they don’t let their hard-earned FSA dollars go to waste!