No More Leftovers: How to Bring More Value to Your FSA Program

There’s a common problem with flexible spending accounts (FSAs) that neither employers nor administrators can afford to ignore—unused funds. According to the latest data from Employee Benefit Research Institute (EBRI), the average forfeiture is $441 in unused funds each year. Not only does this mean that employees are losing $441 that could have been spent on eligible healthcare expenses, but for employers, it’s a sign that the FSA program isn’t hitting its full potential.

For FSA administrators, this means frustrated employer clients on top of the financial losses for their FSA participants.

Why do participants let their FSA funds lapse?    

• Complexity - Many employees don’t keep close track of plan guidelines, eligible expenses, claim deadlines, or account balances.
• Outdated technology – Most underlying FSA platforms were built decades ago and struggle to upgrade to meet modern standards–resulting in clunky user interfaces and a lack of automation that make it difficult to use FSA funds.    
• Cumbersome spending processes – Participants often face complicated claim submission processes, frustrating documentation requests, and payment delays. These roadblocks can discourage participants from submitting FSA claims.

The good news? There are effective ways to help participants make the most of their accounts and improve employers’ perceived value. Let’s look at three ways to help people use their money, increase their satisfaction, and improve your overall FSA program.

1. Make it easier for participants to pay    

Employees commonly complain about FSAs and how difficult it is to deal with payments - and get reimbursed. They also forget to file claims - or misplace their physical receipts - and the funds aren’t used effectively. What can help? Making the entire process easier.       

• Automated Claims Processing - Nobody has time for endless paperwork—not your participants and certainly not your overworked internal teams. Elevate’s automated claims processing reviews and approves claims the moment they are submitted. No humans are needed, there is no back and forth, and there is no frustration or delayed claim approvals. Plus, if the claim isn’t approved with the documentation the participant submits, the system immediately notifies and helps the user correct the issue (see more in the Provide instant feedback section below).
• Immediate Payments - With Elevate, participants can submit a claim and get reimbursed - immediately. Our instant payment capabilities let participants choose to receive instant reimbursements through modern platforms, including Venmo, PayPal, or debit card pushes.    

For administrators, this doesn’t just save time—it creates an experience that participants (and their employers) value. See how claims are automatically processed in this demo.

2. Provide instant feedback

Sometimes participants fail to use FSA funds because of confusion with rejected card swipes or problems submitting manual claims. In instances like these, instant feedback can make a huge difference.  

• Real-time assistance - Elevate notifies participants immediately when there’s a problem so they can resolve the issue. For example, if users have a card swipe denied, they receive instant notification via text of what happened, along with instructions to correct the issue.
• Manual claim help - On the Elevate platform, participants are guided step by step through the claim submission process—including receive immediate verification of the claim approval. The system also notifies users of any documentation issues during claim submission and guides them to correct the issue. This all happens in the moment, giving participants the chance to correct errors before becoming a huge, time-consuming issue.

Interestingly, EBRI’s research finds that users who have just one manually substantiated claim are 13% less likely to forfeit FSA funds, and when they do, they forfeit more than $100 less than those whose claims are auto-substantiated. This further validates the importance of having a simplified and automated claim submission interface to drive account usage for all users.          

3. Improve the experience

Of course, when tools are modern and convenient to use, participants are more likely to use them.          

• Modern interfaces - With Elevate, users have an upgraded, easy-to-use platform. On the web or mobile app, participants can check their balance, see submission deadlines, and file their claims—all in one place.    
• Convenient features - From helpful alerts to the ability to upload receipts directly from a phone, every feature on the Elevate platform is designed to make FSAs easier to use. When participants have a smooth experience, they are more likely to take full advantage of their benefits.

Why Partner with Elevate?

When you work with Elevate as your FSA platform, you’re giving your participants the tools and resources they need to succeed. But more importantly, you’re solving the $441 problem on their behalf—helping them get the most out of their hard-earned money.

Elevate not only gives users faster payment solutions and real-time feedback, but our modern platform and instant notifications also make the entire process easier. Overall, your program brings better usability and more satisfaction - exactly what your employer clients are looking for in their FSA programs. With these improvements, you’ll maximize fund usage - plus position yourself as a leader committed to your users’ financial well-being.          

Let’s get started improving your FSA program. Contact us today for a personalized demo and see the difference we can make—for you and your participants.