PRACTICE MANAGEMENT

PRACTICE MANAGEMENT MODULE: FLEXIBLE SAVINGS ACCOUNT FAQs SEGMENT: MARKETING

© 2017 Vision Source®

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PRACTICE MANAGEMENT Member resources for enhanced practice profitability and performance.

FSA FAQs SEGMENT:

MARKETING

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For internal-use only © 2017 Vision Source® Last revision: 9-Oct-17

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FSA FAQs SEGMENT:

MARKETING

FAQs

FSA FAQS: 2017 4TH QUARTER MARKETING PROMOTION

Campaign for Flex Spending Account (FSA) Dollars The campaign begins in the fourth quarter of the calendar year and encourages patients to use their FSA dollars to purchase eye care and eyewear in your practice prior to December 31st. With this campaign, encourage existing patients and new patients to purchase needed eye care and eyewear before the end of the year and create a great opportunity to increase practice revenue and profit. What is a Flex Spending Account (FSA) and how do they work? An (FSA) helps employees save money on expenses they’re already paying for, such as eye examinations, contact lenses, eyewear, and more. With an FSA or limited-purpose FSA, an employee may elect to have money set aside from their paycheck and deposited in an FSA before taxes are taken out. These are referred to as ‘pre-tax’ dollars. The patient can use these pre-tax dollars to pay for eligible vision or dental expenses throughout the year. What will an FSA or Limited-Purpose FSA cover? Typically, an FSA will reimburse patients for expenses related to eye care, such as the following: • co-payments • deductibles • routine eye examinations • prescription eyewear • contact lenses • prescription sunglasses Every FSA plan is different, so it’s important that each patient review their individual plan before making any purchases.


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MARKETING When can patients spend FSA dollars? All FSAs have a start date and an end date, and the time in between is referred to as the ‘plan year.’ FSA dollars can be spent at any time during the patient’s FSA plan year, but many patients delay their purchases until they have the most dollars to spend, which is at the end of the year. To qualify, expenses must be incurred during the FSA plan year. The expenses for vision care and/or eyewear are incurred when a patient, their spouse, or dependents are provided with the vision care. While the most common plan year runs from January 1st – December 31st, there may be exceptions. It’s important that doctors and staff know the following to most effectively market to existing patients and potential new patients with FSA dollars to spend: • The major employers in the area • Which employers offer FSAs to their employees • Dates for the plan year of the employer’s FSA program With this information, target marketing to existing patients by sorting patient base by employer with practice management software. Once the existing patient base is sorted and the patients with FSAs available through their employer are identified, create a list of patients. Use this list to promote using their FSA dollars with the least amount of effort, least expense, and greatest potential. Why do patients need to use their FSA dollars? One reason that patients might rush to spend their FSA dollars in the latter part of the year is because the IRS created the “use-it-or-lose-it” rule, which states that all money left in an FSA is forfeited at the end of the plan year. If an FSA has a ‘carryover’ feature, a person may carry over up to $500.00 of their unused FSA dollars into the next plan year. Any amount over $500 is lost, and while the $500.00 carryover limit was set by the IRS, some employers may stipulate a lesser amount.


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MARKETING Bring FSAs into the conversation Some of the happiest patients will be those that are reminded to spend their FSA dollars before those dollars are lost. Reminding patients that their FSA dollars can be spent in the practice throughout the year, and implementing a marketing push at the end of the year, will give the practice the greatest opportunity to be the recipient of FSA dollars, which are often cash purchases. Purchases made with FSA dollars are often cash purchases because the patient must pay for the services or materials, and then submit their itemized receipt for reimbursement from their FSA account. Making appointments and greeting patients When patients are making their appointment by phone or are being greeted at the reception counter, your receptionist might include the question, “Will you be using any money that you may have in your Flex Spending Account today?” or the statement, “I also want to make you aware that eye examinations and vision care products, like glasses and contact lenses are often ‘eligible expenses’ for dollars in FSAs. If you have a Flex Spending Account, you may want to check on that.” While this question or comment could be included in conversations with a patient anytime during the year, it’s likely to have the greatest impact from mid-November through December 31st. Throughout the visit to the office Conversations about FSA dollars aren’t limited to the receptionist. In the optical, it could be mentioned to patients as a way to add a second or third pair or prescription sunwear. The FSA discussion can also have a positive impact in the exam room when discussing contact lenses or the purchase of an annual supply of contact lenses. Getting Patients to Spend FSA Dollars in the Practice Because FSA dollars can be spent at the office or with a competitor, offer patients a way to make their FSA dollars buy more in the practice. By law, FSA dollars are limited to $2,550 per employer. What if you offered a way for patients spending FSA dollars in the practice to get more for their money? For example, 20 percent more money.


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MARKETING Remember, FSA dollars must be spent as a cash purchase and the patient submits a paid receipt for reimbursement from their FSA. Rather than offer a discount, make an offer such as, “Spend $200 of FSA dollars and receive $220 worth of professional services, eyewear, prescription sun wear, or contact lenses.” Another option is: “Spend $500 of FSA dollars and receive $600 worth of professional services, prescription sun wear, or contact lenses.” Rather than forming a marketing message around a discount, offer the patient additional buying power using the FSA dollars. Additional 4th Quarter Marketing Opportunities Meeting Health Insurance Deductibles In the fourth quarter of the year, it is likely that a greater number of patients will have met their health insurance deductibles. With that in mind, doctors can also market to patients that haven’t had their annual examination, those who are due or past due for diagnostic testing that were prescribed earlier in the year, or other follow-up visits. Target marketing to patients who need medical care Additionally, marketing to patients who haven’t had an eye examination within the prescribed interval is easy to accomplish. For example, if an annual eye examination is recommended to all patients, then another target for the fourth quarter marketing could be every existing patient that hasn’t had an eye examination in the previous 12 months. Practice management software allows practices to sort the existing patient base by the date of the patient’s last examination. If a practice plans to mail, email, or text a notice on October 1st of this year, any patient whose last examination (92004, 92014) was on or before October 1st of last year becomes part of this target market. Target Marketing for Specific Patient Needs One of the easiest ways to define a target market is to identify patients with a specific, yet common need, or common foe. Use the epidemiological information in the EMR and/or office management software to identify patients with the same, or a similar, diagnosis that requires regular, ongoing care. As an example, target patients with glaucoma, macular degeneration, dry eye, or those with a family history of a condition. For internal-use only © 2017 Vision Source® Last revision: 9-Oct-17

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MARKETING Marketing and Selling Gift Certificates during the Holidays Gift certificates have become commonplace beneath the Christmas tree. Giving a gift certificate is a great way to ensure that the recipient receives what they want. With gift certificates available from hundreds of retailers, a practice gift certificates can still be competitive and increase sales during the holiday season. It’s all in the way that the gift certificate is presented. For example, offer gift certificates at a purchase price that is 20 percent less than the redeemable face value. Here’s how it works: sell a gift certificate redeemable for $100 worth of frames, spectacle lenses, sun wear, or contact lenses for $80. This is an attractive offer to those purchasing gift certificates because it only costs them $80 to give a $100 gift. This promotion is also great for the practice because the purchaser pays cash before any services, eyewear, or contact lenses are even ordered. Practices can also stipulate how the gift certificates may be used (i.e., not redeemable for cash, no other discounts apply, or not valid in conjunction with purchases made using managed vision care plans). Everyone in the office can promote gift certificate sales to patients. The receptionist can tell patients about gift certificates when making an appointment or greeting a patient at the front desk. Pre-test, technicians, and doctors can present them during the examination, and the opticians can mention them in optical. Be sure to promote the sale of gift certificates early, have the certificates available, educate doctors and staff, communicate clearly, and avoid lengthy explanations and stipulations. Some patients will buy a gift certificate for themselves in order to receive a 20 percent discount on their own cash purchases.


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