Investopedia explains 'Flex Dollars'
1. Flex dollars are stored electronically and the data is encoded on a wallet-sized card, often the student's school ID card. The accounts usually work on a declining balance system (similar to a debit card) whereby a student selects how much money to put in the flex dollar account and amounts are subtracted each time he or she makes a purchase.
2. An example is being assigned $1000 to split between dental, vision and prescription drugs. An employee in this case can split it evenly between all three, or put all in just one if they feel that would be most beneficial to their situation. Some companies provide basic benefits coverage and add flex dollars for better coverage.
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