Benefits Card Increases Appeal of Tax-Favored Accounts

April 20, 2009 (PLANSPONSOR.com) - Health care consumers report the availability of benefits cards positively influenced their decision to sign up for tax-favored accounts including Flexible Spending Accounts (FSAs), Health Savings Accounts (HSAs), or Health Reimbursement Arrangements (HRAs), according to the results of the Evolution Benefits Consumer Experience Survey.

Two-thirds of the nearly 900 survey respondents indicated that availability of the card influenced their decision to sign up for the benefit, while almost three-quarters said that having a card made using their account funds easier, a press release said. The majority of consumers commented that they have encountered few - if any - problems and know exactly where the card can be used.

Card communication was rated as good to excellent. As a result, according to the announcement, 92% of the respondents said they knew where and how to use the card and which items are eligible for pre-tax treatment based on IRS guidelines. In addition, 87% of respondents found it advantageous to have point of service substantiation.

The survey was distributed to MasterCard cardholders at 10 distinct employers in various industries.

Rebecca Moore
editors@plansponsor.com