Unlock the Potential of Open Enrollment to Boost FSA and HSA Participation 

Open enrollment is your annual opportunity to reshape your employees’ benefits experience. It’s the perfect time to educate your team, highlight the advantages of your offerings, and encourage participation in benefits like Flexible Spending Accounts (FSAs) and Health Savings Accounts (HSAs). While health insurance often receives the most attention, FSAs and HSAs remain underrated yet powerful tools that can bring immense value to employees and employers alike. 

Unfortunately, low participation rates in these benefits are common, largely due to misconceptions or a lack of engagement. But here’s the good news: with a focused open enrollment strategy, you can bridge the gap, encourage enrollment, and unlock the full potential of these plans. This guide explores the value of FSAs and HSAs, the barriers to participation, and actionable strategies to drive engagement during open enrollment. 

Table of Contents 

1. Plan Priority During Open Enrollment
2. The Employee Perspective
3. The Employer Perspective
4. Participant Barriers During Open Enrollment
5. Strategies to Boost Participation
6. Maximizing Year-Round Engagement
7. Empower Your Workforce
8. FAQs

Why FSAs and HSAs Should Be a Priority During Open Enrollment 

Employers often view open enrollment as a logistical task, but it’s so much more. It’s a time to empower employees and communicate the value of your benefits package. FSAs and HSAs, in particular, are game-changers. Not only do they provide tax savings for employees, but they also foster financial stability and deliver tangible advantages for employers. 

The Employee Perspective: Gaining Financial Security 

During open enrollment, employees have the chance to make informed decisions about their benefits. Educating them on the tax advantages and financial security that come with FSAs and HSAs can help demystify these options: 

• Tax Savings: Employees can set aside pre-tax dollars for eligible medical expenses, reducing their taxable income. For instance, an annual FSA contribution of $1,500 could result in savings of up to $600. 
• Preparedness: FSAs and HSAs provide a safety net for out-of-pocket healthcare expenses, giving employees peace of mind. 
• Engagement and Satisfaction: Empowered employees who fully utilize their benefits are often more engaged and loyal. A MetLife study found that 76% of employees who understood their benefits felt financially stable. 

The Employer Perspective: Boosting Retention and Saving Money 

For employers, open enrollment is an opportunity to not only educate employees but also gain financial and organizational advantages: 

• Savings on FICA Taxes: Employers save an average of $107 per employee annually when employees contribute to FSAs and HSAs, and this quickly adds up for larger workforces. 
• Enhanced Workforce Retention: Employees who feel financially stable are more likely to stay loyal to their employer. 
• Improved Engagement: Offering these plans and educating employees about their value can increase motivation and organizational loyalty. 

Barriers to FSA and HSA Participation During Open Enrollment 

Despite their benefits, many employees opt out of FSAs and HSAs. Here are some of the most common reasons and how they create challenges for employers during open enrollment: 

1. Lack of Understanding. The technical nature of benefits and the misconception that FSAs and HSAs are complex often deters employees. For example, many worry about the “use-it-or-lose-it” rule, unaware that rollover options are available. 

2. Overwhelming Details. During open enrollment, employees are swamped with information about various benefits. Complex terminology and dense enrollment materials only contribute to employee hesitation and a lack of confidence. 

3. Poor Communication. A single email or meeting isn’t enough to engage employees. Without consistent, clear messaging throughout open enrollment, employees may overlook FSAs and HSAs. 

4. Limited Engagement Tools. Many employers underutilize tools like webinars, infographics, and calculators during open enrollment. A recent Navia Benefits Solutions report revealed that 95% of employers fail to fully leverage engagement tools, limiting awareness and interest. 

Proven Strategies to Boost Participation During Open Enrollment 

The key to increasing FSA and HSA engagement is to tackle these barriers head-on with a comprehensive and well-executed open enrollment plan. Here are some proven approaches:

Make Benefit Education a Priority

Educating employees about FSAs and HSAs should be a central focus during open enrollment. Clear, accessible information can help demystify these benefits: 

• Webinars: Host live or on-demand webinars to explain the basics of FSAs and HSAs, their benefits, and eligible expenses. Companies implementing webinars have seen up to a 16% increase in FSA participation. 

• Visual Aids: Use infographics and quick-start guides to present complex information in a digestible format. 

Simplify the Enrollment Process

Open enrollment should be as seamless as possible. Break down the enrollment process into easy-to-follow steps and provide tools like: 

• Intuitive online platforms 
• Step-by-step guides detailing contribution options and eligible expenses 
• FAQ sheets addressing common concerns

Train Managers to Provide Guidance

Managers play a crucial role during open enrollment and often serve as employees’ main source of information about benefits: 

• Role-Play Scenarios: Equip managers with real-world examples and FAQs to help them confidently answer employee questions. 
• Manager Toolkits: Provide resource guides tailored to helping team leaders explain FSAs and HSAs. 

Use Engagement Tools Effectively

Modernize your open enrollment strategy by integrating interactive tools that keep employees engaged: 

• Benefit Calculators: Allow employees to see how much they can save by participating. 
• Interactive Quizzes: Use gamified content to educate younger employees, like Millennials and Gen Z. 
• Gamification: Incentivize early enrollment with raffles, reward points, or gift cards. 

Share Real-World Success Stories 

Highlight testimonials or case studies to illustrate how FSAs and HSAs have positively impacted employees’ lives. These stories make the benefits relatable and tangible. 

Real-World Example: A mid-sized company with over 3,000 employees boosted HSA participation by 32% during open enrollment by implementing webinars and customized communication strategies. 

The Role of Year-Round Engagement 

While open enrollment is the primary focus, providing benefits education throughout the year can have an equally significant impact. Organizations that maintain ongoing communication about FSAs and HSAs see up to 50% higher participation rates during open enrollment. 

Investing in year-round initiatives like newsletters, workshops, and online portals helps reinforce the value and encourages consistent engagement with benefits. 

Empower Your Workforce During Open Enrollment 

Open enrollment is more than just a process; it’s an opportunity to create a more engaged and financially secure workforce. By breaking down communication barriers, simplifying the enrollment process, and leveraging targeted engagement strategies, you can unlock the potential of FSAs and HSAs for your employees and your organization. 

Are you ready to make your open enrollment strategy more effective? Download our free whitepaper to learn more about boosting benefits participation and reducing administrative burdens. Together, we can transform your approach and empower your workforce for the future. 

FAQs 

Q1: How can I effectively communicate the value of FSAs and HSAs during open enrollment? 

Clear, consistent communication is key to helping employees understand the benefits of FSAs and HSAs. Use a mix of channels like webinars, emails, and visuals to educate your workforce. Simplify complex concepts with infographics or FAQs and emphasize real-life scenarios showing how these plans can save money and reduce financial stress. Year-round reminders can also keep the benefits top of mind beyond open enrollment. 

Q2: What strategies can help employees overcome common misconceptions about FSAs and HSAs? 

Addressing misconceptions begins with education. For example, clarify confusion around the “use-it-or-lose-it” rule by explaining rollover options for FSAs. Simplify terminology, so employees feel confident making informed decisions. Hosting Q&A sessions during open enrollment, where employees can ask questions directly, often helps dispel myths and build trust in the plans. 

Q3: How can I make the enrollment process easier for employees? 

First, ensure that your enrollment platform is user-friendly and intuitive. Provide step-by-step guides and short video tutorials to walk employees through the process. Highlight key deadlines and set up automatic reminders to avoid confusion. Offering access to benefits calculators can also help employees understand how much to contribute based on their income and medical expenses. 

Q4: What role do managers play during open enrollment, and how can I prepare them? 

Managers often serve as the first point of contact for employees seeking guidance on benefits. Equip managers with toolkits, including FAQs, guides, and benefit highlights, so they can confidently answer questions. Training sessions or role-playing scenarios can help them better understand FSA and HSA advantages and explain them effectively to their teams. 

Q5: Are there innovative ways to encourage higher FSA and HSA participation during open enrollment? 

Yes, innovation can drive engagement! Use gamification strategies, such as offering reward points or small prizes for early enrollment. Create short, interactive quizzes that make learning about FSAs and HSAs engaging. Additionally, showcase success stories from past participants to make the benefits relatable and inspire others to enroll. Combining these efforts with effective communication can significantly boost participation rates.