Bringing consumer-directed benefits into the digital era

by Scott Rose | Originally posted on BenefitsPro

Making tax-advantaged benefit plans easier to navigate will allow employees to make better use of their benefits.

Consumer-directed benefits are supposed to make life easier for employees. By using pre-tax benefit plans like HSAs and FSAs to pay for everything from medical and dental care to commuter costs, workers can save money while gaining more control over their earned income.

Tax-advantaged programs like HSAs and FSAs can also offset a portion of rising health care costs shouldered by both employers and employees. Health benefit costs for employers are expected to rise by more than 5% in the new year, while deductibles for participants have increased by 70% over the past decade. Half of Americans are enrolled in high-deductible health care plans. Yet tax-advantaged benefit accounts remain widely underutilized.