Flex accounts: Where does the money go?
July 14, 2009 by Bill MeltzerPosted in: Latest News & Views, Pay and benefits
Where do your employees concentrate their FSA contributions?
Non-covered prescription drugs represent 43% of employees’ out-of-pocket medical expenses, according to a recent Kaiser Family Foundation study. Other top expenses:
- physician office visit copays and non-covered services (26%)
- dental care (17%), and
- vision services (9%).
In total, about 35% of employees’ total medical expenses per year are now paid out of pocket.
Employees in the top 20% for out-of-pocket costs cause 80% of the total medical claims at most organizations, the study finds. The top 5% alone account for nearly half (49%) of all medical costs.
Per person, the high-risk group of employees spends $7,000 per year, a figure expected to climb to $12,000 by 2015.
