Lesikar's Business Communication: Connecting in a Digital World 13th Edition by Kathryn Rentz,Paula Lentz

Exercise 48

Like many companies, Artemis Financial Services has had to address the increasing cost of employee health insurance. The company had been paying 100 percent of the premium ($1,200 \ month for the family plan; $600 \ month for the individual plan), as well as the $1,500 annual deductible for the family plan and a $750 deductible for the individual plan, but it recently had to reduce these benefits. Now the company pays 85 percent of the total premium, with employees paying the other 15 percent, and employees now pay the annual deductible.
Your boss is looking for some way to ease the burden of these additional costs to the employees and wonders whether a flexible spending account (FAS) could be a way to do so. Are FSAs a good idea for businesses and employees? Prepare a report to your boss in which you analyze the advantages and disadvantages of FSAs so that she can decide whether to offer FSAs to the employees.