Framing flexible spending accounts: A large‐scale field experiment on communicating the return on medical savings accounts

Tax‐preferred health savings devices such as Flexible Spending Accounts (FSAs) and Health Savings Accounts (HSAs) offer employees potentially valuable financial instruments for directing pre‐tax earnings to eligible medical expenses. Despite their increasing popularity as an employee benefit, howeve...

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Autores principales: Leight, Jessica, Wilson, Nicholas
Formato: Journal Article
Lenguaje:Inglés
Publicado: John Wiley & Sons 2020
Materias:
Acceso en línea:https://hdl.handle.net/10568/142622
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author Leight, Jessica
Wilson, Nicholas
author_browse Leight, Jessica
Wilson, Nicholas
author_facet Leight, Jessica
Wilson, Nicholas
author_sort Leight, Jessica
collection Repository of Agricultural Research Outputs (CGSpace)
description Tax‐preferred health savings devices such as Flexible Spending Accounts (FSAs) and Health Savings Accounts (HSAs) offer employees potentially valuable financial instruments for directing pre‐tax earnings to eligible medical expenses. Despite their increasing popularity as an employee benefit, however, there is little causal evidence around individual demand for these accounts. This paper seeks to address this gap in the literature, reporting on a randomized controlled field experiment conducted with over 11,000 U. S federal employees in 2017 in order to evaluate the effectiveness of targeted messages designed to increase FSA contributions. Our results suggest that the provision of basic information about FSAs delivered via an emailed employee newsletter did not affect the likelihood of contribution or the contribution level. The addition of statements about the absolute returns or relative returns offered by the accounts similarly had no significant effects, and these null effects are observed despite relatively high email open rates. We discuss explanations for the null results and the policy implications of findings from what appears to be the first health economics experiment analyzing tax incentives around health care savings.
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spelling CGSpace1426222024-11-15T08:52:05Z Framing flexible spending accounts: A large‐scale field experiment on communicating the return on medical savings accounts Leight, Jessica Wilson, Nicholas costs consumer expenditure field experimentation taxes randomized controlled trials fiscal policies incentives returns accounts savings health care Tax‐preferred health savings devices such as Flexible Spending Accounts (FSAs) and Health Savings Accounts (HSAs) offer employees potentially valuable financial instruments for directing pre‐tax earnings to eligible medical expenses. Despite their increasing popularity as an employee benefit, however, there is little causal evidence around individual demand for these accounts. This paper seeks to address this gap in the literature, reporting on a randomized controlled field experiment conducted with over 11,000 U. S federal employees in 2017 in order to evaluate the effectiveness of targeted messages designed to increase FSA contributions. Our results suggest that the provision of basic information about FSAs delivered via an emailed employee newsletter did not affect the likelihood of contribution or the contribution level. The addition of statements about the absolute returns or relative returns offered by the accounts similarly had no significant effects, and these null effects are observed despite relatively high email open rates. We discuss explanations for the null results and the policy implications of findings from what appears to be the first health economics experiment analyzing tax incentives around health care savings. 2020-02-01 2024-05-22T12:10:46Z 2024-05-22T12:10:46Z Journal Article https://hdl.handle.net/10568/142622 en Limited Access John Wiley & Sons Leight, Jessica; and Wilson, Nicholas. 2020. Framing flexible spending accounts: A large‐scale field experiment on communicating the return on medical savings accounts. Health Economics 29(2): 195-208. https://doi.org/10.1002/hec.3965
spellingShingle costs
consumer expenditure
field experimentation
taxes
randomized controlled trials
fiscal policies
incentives
returns
accounts
savings
health care
Leight, Jessica
Wilson, Nicholas
Framing flexible spending accounts: A large‐scale field experiment on communicating the return on medical savings accounts
title Framing flexible spending accounts: A large‐scale field experiment on communicating the return on medical savings accounts
title_full Framing flexible spending accounts: A large‐scale field experiment on communicating the return on medical savings accounts
title_fullStr Framing flexible spending accounts: A large‐scale field experiment on communicating the return on medical savings accounts
title_full_unstemmed Framing flexible spending accounts: A large‐scale field experiment on communicating the return on medical savings accounts
title_short Framing flexible spending accounts: A large‐scale field experiment on communicating the return on medical savings accounts
title_sort framing flexible spending accounts a large scale field experiment on communicating the return on medical savings accounts
topic costs
consumer expenditure
field experimentation
taxes
randomized controlled trials
fiscal policies
incentives
returns
accounts
savings
health care
url https://hdl.handle.net/10568/142622
work_keys_str_mv AT leightjessica framingflexiblespendingaccountsalargescalefieldexperimentoncommunicatingthereturnonmedicalsavingsaccounts
AT wilsonnicholas framingflexiblespendingaccountsalargescalefieldexperimentoncommunicatingthereturnonmedicalsavingsaccounts