Don’t Let Your Employees Lose Money: Year-End Benefits Communication That Actually Works
Your employees are about to lose $800. And they don’t even know it’s happening.
The average forfeited FSA balance is $800 per employee. Not because employees don’t want to use their benefits, but because they didn’t receive clear, timely communication about what they have, what it covers, and when the deadline hits.
By January 1st, those FSA dollars are gone. The preventive care appointments that could have been scheduled? Missed. The prescription glasses that could have been purchased? Paid out of pocket. The financial advantage employees had? Forfeited.
Beyond the $800 per employee in lost FSA funds, employers see higher Q1 claims from delayed preventive care, lower benefits satisfaction scores, and reduced FSA participation the following year. When employees lose money due to poor communication, they remember it.
Most employers communicate benefits once during open enrollment, then go silent for 11 months. A single reminder email sent on December 15th doesn’t give employees time to act, and generic policy language doesn’t tell them what to do.
The reality: year-end benefits communication isn’t a compliance checkbox. It’s a strategic opportunity to help employees maximize value and set up higher engagement for the year ahead.
Why Year-End Benefits Communication Fails
The pattern is consistent. Benefits communication happens intensively in October and November, then drops to near-zero in December. When it does happen, it fails for predictable reasons.
Communication starts too late. A single email on December 15th gives employees two weeks to schedule appointments during the busiest time of year. Medical offices are closing early. Employees are traveling. Two weeks isn’t enough.
The language is too technical. “Familiarize yourself with eligible FSA expenses per IRS Publication 502” doesn’t resonate. “Use your FSA to buy new glasses before December 31st” does.
Guidance lacks specificity. “Remember to use your FSA before year-end” is meaningless. Employees don’t know what’s covered, where to go, or how much they have left.
Communication isn’t mobile-optimized. Employees check work email on their phones during December. Dense paragraphs and long PDFs don’t work on a 6-inch screen.
There’s no follow-up. One email to 500 employees doesn’t guarantee 500 employees saw it. Inbox overload and holiday distractions mean single-touchpoint communication reaches a fraction of your workforce.
The result: employees forfeit FSA dollars they could have used, preventive care goes unscheduled, and your benefits program doesn’t deliver the value it should.
What Effective Year-End Communication Looks Like
The employers who reduce FSA forfeitures and increase preventive care utilization aren’t doing more work. They’re doing different work.
Start Early and Use Multiple Touchpoints
Effective year-end communication doesn’t start in mid-December. It starts in early November and continues through year-end with strategic repetition.
Timeline that drives results:
Early November: First FSA reminder—check your balance and start planning.
Mid-November: Preventive care push—schedule appointments now before availability tightens.
Early December: Second FSA reminder with specific examples.
Mid-December: Final FSA push with urgency messaging.
Late December: Holiday healthcare navigation guidance.
Employees who receive four to five spaced messages have more time to act than those who receive one message on December 15th.
Be Ruthlessly Specific
Generic guidance helps no one. Specific examples drive behavior change.
Instead of this:
“Remember to use your FSA funds before December 31st.”
Do this:
"You have $620 left in your FSA. Here are five ways to use it before December 31st:
Schedule an eye exam and order prescription glasses or contacts ($200-$400)
Book physical therapy or chiropractic appointments ($150-$300)
Stock up on over-the-counter medications ($50-$100)
Purchase prescription sunglasses ($150-$300)
Schedule your annual physical (copay applies toward FSA)"
Specificity removes decision paralysis.
Clarify Plan Rules
Not all FSA plans operate the same way. Employees don’t know which rules apply unless you state it clearly.
Communicate your plan’s specific rules:
“Your FSA funds must be used by December 31st. Any unused balance will be forfeited.”
OR
“You have until March 15th to incur eligible expenses using your 2025 FSA funds (grace period).”
OR
“You can carry over up to $640 into 2026. Any amount over $640 will be forfeited if not used by December 31st.”
Clear rules create urgency and enable planning.
Go Multi-Channel and Mobile-First
Email alone doesn’t reach everyone. Multi-channel communication increases visibility.
Channels that work:
Email (multiple sends, segmented by balance)
Slack or Teams (short reminders with direct links)
Physical posters in break rooms
Manager talking points
Payroll messages
Text messages (if your platform supports SMS)
Every message should be mobile-optimized: short paragraphs, bullet points, and direct links. If it doesn’t work on a phone, it doesn’t work.
Beyond FSA: Expand Year-End Communication
Promote Preventive Care Before Year-End
December is when employees have time for healthcare. They’re using PTO, work pace slows, and many have met their deductibles.
What to communicate:
“You’ve met your deductible. Schedule that specialist appointment now.”
“Annual physicals and dental cleanings are fully covered. Schedule before year-end.”
“Telehealth is available 24/7, including during holiday travel.”
Preventive care completed in December reduces January claims.
Guide Holiday Healthcare Navigation
The holidays bring closed provider offices and predictable spikes in ER visits. One proactive communication can save thousands.
What to communicate:
"Before you go to the ER this holiday season, try these first:
Telehealth — Available 24/7, including holidays
Nurse hotline — Free, immediate guidance
Urgent care — Faster and cheaper than the ER
Pharmacy clinics — Open when primary care offices are closed
When to actually go to the ER: Chest pain, difficulty breathing, severe bleeding, stroke symptoms, major trauma."
Employees who understand care navigation options make better decisions under pressure.
What Success Looks Like
Employers who execute effective year-end benefits communication see measurable results:
FSA forfeiture rates drop 40-60%
Preventive care utilization increases 15-20% in Q1
Holiday ER visits decrease 10-15%
Benefits satisfaction scores improve
The employers who treat year-end communication strategically don’t just reduce forfeitures. They build trust, drive engagement, and set up higher ROI for the year ahead.
Making This Practical
You don’t need a massive HR team to execute effective year-end communication. You need a plan, a calendar, and consistency.
Start here:
Week 1 (Early Nov): First FSA reminder with balance information
Week 3 (Mid-Nov): Preventive care campaign
Week 5 (Early Dec): Second FSA reminder with specific examples
Week 7 (Mid-Dec): Final FSA push with urgency
Week 8 (Late Dec): Holiday healthcare navigation
Track three metrics: FSA forfeiture rates, preventive care appointment volume, and holiday ER visit rates. If those improve, your communication is working.
The Bottom Line
Your employees don’t want to lose $800. They just need clear, specific, timely communication from you.
The gap between what employees have and what they use isn’t a benefits design problem. It’s a communication problem. And communication problems are fixable.
The employers who communicate strategically don’t just reduce forfeitures. They build benefits programs that deliver real value and generate measurable ROI.
That’s not just better HR. That’s better business.
Want help building a year-end communication strategy that drives results? Let’s talk.