Consumer-Driven Benefits Aren’t Just About Healthcare

When most people hear "consumer-driven benefits," they tend to think of healthcare—specifically account-based programs like Health Savings Accounts (HSAs) or Flexible Spending Accounts (FSAs). And while these remain foundational pillars of many benefits packages, the world of consumer-driven benefits (CDBs) goes well beyond the doctor’s office.

Today’s CDBs reflect the modern employee’s broader needs—supporting not just physical health, but work-life balance, financial wellness, family responsibilities, and personal growth. These programs are empowering employees to take control of more aspects of their well-being, while giving employers new tools to attract and retain top talent.

Let’s explore a few consumer-driven benefit options that go far beyond healthcare.

Dependent Care Flexible Spending Accounts (DCFSA)

Parents and caregivers know that childcare and eldercare costs can quickly add up. A Dependent Care FSA allows employees to set aside pre-tax dollars to pay for qualifying care expenses—including daycare, after-school programs, and in-home elder care. This benefit not only helps reduce taxable income, but also offers real support for employees juggling work and caregiving responsibilities. Added bonus, the One Big Beautiful Bill Act which became law July 4, 2025 increased the DCFSA limit from $5,000 to $7,500. This is the first increase since DCFSA passed decades ago.

What to know about DCFSA?

• DCFSA is a cash balance account. Funds can be used as they are deposited and become available.

• Funds must be used for the care of a qualified dependent. This is typically a child under the age of 12 or an adult dependent.

• The care must enable individuals to work, look for work or attend school full-time.

• Common eligible expenses include: daycare centers, before and after school care, summer day camps, in-home care or care for older dependents who are incapable of self-care.

Commuter Benefit Accounts

As more employees have returned to the office on either a full-time or hybrid basis, commuter benefits have seen renewed interest and importance. Commuter benefit accounts allow employees to use pre-tax dollars for qualified transportation and parking expenses. These accounts help ease the burden of commuting costs while encouraging greener, more sustainable travel options.

What to know about commuter benefit accounts?

• Separate elections must be made for transit expenses and parking expenses.

• Common transit expenses for buses, subways, ferries, trains, and vanpools. Parking expenses may include the cost of parking at or near workplace location, or a location near mass transit.

• Elections are set monthly (up to IRS limits) and can change at any time for any reason.

• Make sure your plan allows for flexible purchase options. Workforces and commuting behaviors have evolved and your plan must meet the dynamic commuting needs of employees today.

Adoption Assistance Programs

Adoption can be a life-changing and expensive journey. Adoption assistance programs offer financial support—often in the form of reimbursement accounts—for qualified adoption-related expenses such as legal fees, agency costs, and home studies. These programs signal a company’s commitment to supporting all paths to parenthood and family building.

What to know about Adoption Assistance Programs

• Adoption Assistance programs can be challenging in practice. If permitting employee pre-tax elections, employees must have a firm understanding of when an adoption is expected to close as there are restrictions on when the funds must be used.

• Non-refundable Tax Credit vs. Employer-Sponsored Benefits: The federal Adoption Tax Credit can offset taxes owed but does not offer a refund. Employees may need additional planning if they don't owe enough tax to benefit. Additionally, expenses paid through a tax credit cannot also be reimbursed through an employer-sponsored benefit.

Tuition Assistance Programs

Education remains a powerful tool for career development, and tuition assistance programs help employees pursue it without carrying the full financial load. These benefits can cover tuition, books, or certification costs, and are often tied to learning that supports job-related skills. Some employers also include student loan repayment programs under this umbrella—further supporting financial wellness.

What to know about Tuition Assistance Programs

• Eligibility Often Varies: Benefits may be limited to specific degree types, accredited institutions, or employees who’ve met tenure thresholds—clarity on requirements helps avoid confusion and underutilization.

• Repayment & Commitment Clauses: Many programs require employees to maintain a certain grade point average or commit to staying with the company for a set period post-reimbursement to avoid paying back the funds.

• Tax Implications: Up to $5,250 per year in employer-provided tuition assistance is excluded from taxable income under IRS rules—benefits above that may be subject to income tax.

Lifestyle Spending Accounts (LSAs)

Perhaps the most flexible of the emerging benefit options, Lifestyle Spending Accounts allow employers to fund a variety of personal well-being expenses—on a post-tax basis. From gym memberships and mental health apps to pet care or home office equipment, LSAs can be customized to reflect the unique values and priorities of a company’s workforce. They’re a modern, inclusive way to support total employee well-being.

What to know about LSAs

• LSAs are a post-tax, employer-funded benefit.

• Employers set the structure, amount and payment rules. Unlike most CDB accounts, LSAs are not governed by the IRS.

• LSAs are a great way for employers to address the unique needs of their workforce without administrative complexity.

The Bigger Picture: Personalization and Choice

As employee expectations evolve, so too must the benefits landscape. Consumer-driven benefits aren’t just about offering more—they’re about offering better. Programs like these enable employees to choose the support that matters most to them, on their own terms. And for employers, this personalization can boost engagement, retention, and overall satisfaction.

It’s time to broaden the definition of consumer-driven benefits. Because health is important—but so are the many other parts of life that make employees whole.

Found this helpful?

I help HR, financial services, and benefits advisors to communicate clearly, avoid pitfalls, and build better employee experiences through thought leadership, relationship nurturing & engaging resources.

1. Subscribe to Angel Wisdom and share with others

2. Follow Angel Vision on LinkedIn for ongoing communications, marketing and benefits tips.

3. Request a complimentary discovery session to see how Becky and Angel Vision can assist you with your communication, education or marketing needs.