The Healthcare Trends Institute, an educational resource for employers, employees, and other healthcare benefits stakeholders, has announced the results of an employer survey completed during winter 2014 about employer adoption of and rationale behind choosing the flexible spending account (FSA) carryover option.
When asked, “What percentage offered the option to rollover FSA funds?:
- 51% adopted the rollover option
- 49 percent elected to offer a grace period of up to 75 days.
When asked, What was the primary reason you adopted the rollover option for 2014?:
- 68.1% said so employees don’t have to risk losing funds at the end of the year
- 27.6% said that because balances usually are below $500, it made sense to let them roll over
- 4.3% said because employees requested the rollover.