NEW YORK, July 12, 2018 /PRNewswire-iReach/
COBRA administration company, Clarity Benefit Solutions, shares FSA participation trends.
Flexible Spending Accounts (FSAs) can be paired with any health plan and allow employees to use tax-free dollars to pay for a multitude of health expenses. Fortunately, the current climate in the benefit account industry is strong. FSAs are trending and provide employers with a way to bring in some fresh faces. FSAs come in two types—healthcare and dependent care. Both options work the same way in that employees contribute a specific amount to the account, accrue eligible expenses, and then get reimbursed (or, in some cases, get to debit that amount from a prepaid account).
In 2018, employees can contribute an extra $50 into their FSAs—making the new total $2,650—up from the 2017 limit of $2,600. This increase also applies to limited-purpose FSAs that are restricted to dental and vision services. Many employees do not realize how much they are spending each year on health care expenses such as co-pays, insurance deductibles, prescriptions, and other health-related items. These types of expenses really can add up. That is where participating in an FSA can really make a difference. Savings of up to 40 percent can be realized on medical, dental, and vision expenses.
Today, employees are recognizing that FSAs cover a variety of expenses beyond the typical doctor visits, medications, medical equipment, dental expenses such as checkups and cavity fillings, and prescription eyeglasses and contact lenses. Participation in Dependent Care FSAs, in particular, are on the rise as millennials plan families. Employees planning to adopt can funds earmarked for adoption—both domestic and international. At the same time, these millennials are caring for elderly parents. A Dependent Care FSA can help employers attract—and retain—employees of all ages. Young children or elderly parents could both need daycare. These accounts can also be used to care for older children with special needs.
Employees are also participating in commuting and parking account FSAs—especially those who travel often for work. These expenses can often be written off at the end of the year. However, with an FSA the employee nets the tax benefits immediately. Some commuting and parking account FSAs also feature parking benefits if employees have to pay for parking for work.
About Clarity Benefit Solutions: Clarity Benefit Solutions provides technology that makes the health insurance plan selection process fast, easy, and straightforward. For over two decades, we have provided clients with industry-leading technology, compliance, and exceptional customer service. Our offering is designed to save time and lower the costs of managing benefits while also promoting employee self-service and automated ACA compliance.
Media Contact: Calvin Clark, Clarity Benefit Solutions, 732-428-8272, firstname.lastname@example.org
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SOURCE Clarity Benefit Solutions