As the year draws to a close, it’s important that both employers and employees focus on year-end planning for spending accounts. Proper communication from employers on how to manage these accounts before the year ends ensures that employees maximize their benefits and avoid losing any unused funds. 

Healthcare Flexible Spending Accounts (HCFSAs) are important because they provide a tax-advantaged way for employees to manage out-of-pocket medical expenses. By allowing pre-tax contributions and reimbursements, FSAs reduce taxable income, which can lead to significant savings.

Both HSAs and FSAs offer tax benefits when managing medical expenses, but differ in eligibility contributions and rollover options. Understanding these helps align with financial goals. 

Health Savings Accounts (HSAs) are increasingly valuable in today’s economic landscape, primarily due to their triple tax advantages: contributions are tax-deductible, growth is tax-free, and withdrawals for qualified medical expenses are also tax-free.

One thing a majority of U.S. employers and employees agree on: employee benefits are key to attracting and retaining good hires, and they are high on the list of priorities for good hires to accept and remain in a job.

Passed in 2022, the Inflation Reduction Act (IRA) includes major changes to Part D intended to control prescription costs, cap maximum retiree out-of-pocket costs and simplify coverage for Medicare enrollees. This strengthening of Part D offers improved coverage for retirees as well as new risks and opportunities for thousands of public sector employers who sponsor group Medicare Part D plans for their former employees.

Since its passage in 2006, the HELPS Act has allowed retired public safety officers to benefit from an annual pre-tax distribution of up to $3,000 from the government when used to pay for healthcare or long-term care insurance.

Employers and plan sponsors that offer retiree healthcare coverage are challenged with many variables and obstacles to keep their plans affordable, compliant, manageable and most importantly, offer value to the participants. The strategy needs to consider the overall benefit design (deductible, copays, out-of-pocket maximums, coinsurance, visit limits, covered expenses, etc.), funding design (fully insured or self-funded) and covered populations, which all combine to represent the overall cost of the plan.

Plan sponsors and participants are both under increasing financial pressure. Costs are on the rise. As the nation experiences the effects of inflation on fuel, food and housing, retired Americans on fixed incomes especially feel the pinch.

SOUTH JORDAN, UTAH, March 20, 2023 — Shopping for and comparing Medicare prescription drug plans has saved retirees using Via Benefits’ Coverage Checkup, its Medicare Advantage Prescription Drug (MAPD) and Part D prescription drug price comparison tool, over $50 million over the past five years.

ARLINGTON, VA, October 11, 2022 — Pressured by rising costs, U.S. employers are looking at alternative ways to provide healthcare benefits to their retirees over the next three years. And some employers plan to replace their traditional group retiree medical benefits for pre-Medicare retirees with individual insurance through private marketplaces. These are among the findings in a new survey by leading global advisory, broking and solutions company WTW (NASDAQ: WTW).

ARLINGTON, VA, July 26, 2022 — WTW (NASDAQ: WTW), a leading global advisory, broking and solutions company, today announced the appointment of Kevin House as head of Via Benefits, WTW’s individual healthcare marketplace business. In this role, House will be responsible for leading all aspects of the business. He is based in Detroit, MI.

ARLINGTON, VA, February 22, 2022 — Shopping for and comparing Medicare prescription drug plans can pay big dividends to retirees, according to an analysis by WTW (Willis Towers Watson, NASDAQ: WTW), a leading global advisory, broking and solutions company. The analysis found that retirees who used the Via Benefits (WTW’s individual marketplace) Coverage Checkup to compare and ultimately change plans during the 2021 Medicare open enrollment period had a median savings of $373.

ARLINGTON, VA, March 16, 2021 — Willis Towers Watson (NASDAQ: WLTW), a leading global advisory, broking and solutions company, announced today it has enhanced its Coverage Checkup tool, which helped retirees save nearly $345 during the 2020 Medicare open enrollment season.

ARLINGTON, VA, June 24, 2020 — Willis Towers Watson (NASDAQ: WLTW), a leading global advisory, broking and solutions company, was presented with three awards in the 14th annual Stevie Awards for Sales & Customer Service.

ARLINGTON, VA, February 19, 2020 - Roughly half of public sector workers surveyed (46%) are worried that the health care benefits they were promised in retirement will evaporate when they need them most. This is according to the 2020 Keeping Benefit Promises Study by Willis Towers Watson (NASDAQ: WLTW), a leading global advisory, broking and solutions company. Public sector workers also expressed the importance of retiree health care coverage, with 58% saying it was extremely or highly influential in their decision to work in the public sector.