Families with children often spend the most time together during the summer. The kids are off from school which means it’s the perfect time to take a vacation or try some new outdoor activities.
But the things needed for these summer activities can end up costing a lot. Employees with a Health Savings Account (HSA) or a Flexible Spending Account (FSA) have a hidden advantage, as they often don’t realize that their account money can be used towards summer items.
Unfortunately, 96% of people with an HSA aren’t using the money that’s in their account.1 This season, help them make a change. Here are a few ways to help clients promote better ways to use HSAs and FSAs on eligible expenses this summer.
- Connect with a Reliable Partner
Purchasing directly from the FSA or HSA store is, arguably, the easiest way for employees to use the money that’s sitting in their HSA or FSA account, mainly because they don’t have to wonder or worry about whether a product is eligible. Clarity Benefit Solutions connects employees to their FSA and HSA online store. Everything in the store is eligible so employees no longer have to wonder or worry. They just shop for what they need and stock up using money they already have.
- Help Clients Educate Employees about Covered Expenses
How many of your clients’ employees know that they can shop online for the bulk of their families’ health and personal care goods using money they already have in their HSA or FSA account? Not many, right?
Brokers have the advantage of being able to make a significant impact on how much families save just by using the money they already have.
According to the Employee Benefits Research Institute, the average HSA account has over $2,500 dollars in it at the end of the year, a number which is up from previous years.2
The first step to take if you want to make a difference is to help clients educate their employees by showing them the numerous items that are covered with HSAs and FSAs and how easy it is for employees to purchase those items.
For example, eligible items in our online FSA store include, but are not limited to:
- Coppertone Sport Sunscreen (and a variety of other name brands including Neutrogena)
- Sun care beach totes
- Band-aids
- Travel first aid kits for summer camp, the RV, or boat
- Bug repellent
- Stylish sunglasses
Purchasing these items is as easy as going online and entering FSA debit card details at checkout. It’s just like any other online store.
The majority of your clients’ employees will use the items already listed, and probably more, so it’s important to make sure they’re not spending extra to buy them when they already have money set aside for these types of purchases.
- Show Clients How Employees Can Use Covered Expenses Right Now
So many items are FSA eligible expenses and HSA eligible expenses. So, it’s a shame to not take advantage of the benefits these accounts confer.
You can increase your value as a trusted advisor by helping clients illuminate just how immediate the benefits of having an FSA or HSA account are.
The products covered by these accounts are products that kids can use to get ready for camp. Families can use them to prep for vacation, and just about anybody can use them for all summer activities.
Nearly 80% of families have made plans to get away come summer and they’ll be taking sunscreen, sunglasses, bug repellent, and other items with them.3
Instead of going through a subscription service or another online retailer like Amazon, employees can still go online, but place their order through an HSA or FSA store and avoid spending extra, and they can do that, right now.
- Be Repetitive (It’s Okay)
How much time do you spend telling clients about all the services you offer, like COBRA administration services or commuter benefit programs?
Imagine if you spent even a fraction of the time you spend touting all the benefits and services you offer reminding clients and their employees to use their HSA and FSA accounts to buy items they can use right now to help them get ready for summer.
More employees would probably take advantage of the benefits they already have available to them, right?
So, rinse and repeat. Marketers believe it takes somewhere between 3 and 7 exposures for a message to convince consumers to buy.4 The more you tell clients about the ways their employees can use their FSA or HSA account, the more likely those accounts are to be used, and that’s good news for you, because it increases your value as a broker and maximizes your client retention rates.
Start Today
With summer right around the corner, now is the perfect time to start talking to clients about ways their employees can use an FSA or HSA account to prepare for summer fun. We’re here to support you however you need to be supported.
Sources:
1. https://www.fool.com/retirement/2017/12/31/96-of-people-with-a-health-savings-account-are-mak.aspx
2. https://www.ebri.org/pdf/briefspdf/EBRI_IB_438_HSAs.19Sept17.pdf
3. https://www.pymnts.com/news/2016/summer-spending-statistics/
4. https://thefinancialbrand.com/42323/advertising-marketing-messages-effective-frequency/
