How to Save Money with Employer Benefits: Wellness Incentives, COBRA, and Pre-Tax Plans
For people living with chronic illness, healthcare savings often come from familiar places such as pharmacy comparisons, insurance appeals, and negotiated bills. One of the least recognized sources of savings, however, sits inside the workplace. Employer benefits are frequently misunderstood or overlooked, even when they directly reduce out-of-pocket costs.
According to the 2024 Employer Health Benefits Survey conducted by the Kaiser Family Foundation, many employees do not fully understand the benefits available to them. This includes wellness incentives, health-management supports, and pre-tax accounts that lower yearly medical expenses. For people managing chronic conditions, unused benefits can translate into lost money and avoidable stress.
Wellness Incentives Many Workers Never Claim
National employer-benefits surveys report that a majority of large employers offer wellness incentives. These often include reimbursements for preventive visits, health-coaching appointments, chronic-condition programs, and stress-management tools. Yet participation rates remain far lower than availability. Many employees skip the portal entirely because they are not sure what the benefits cover.
Nonprofit benefits-education campaigns highlight examples where employees earned annual incentives by documenting routine medical visits, completing short educational activities, or participating in condition-specific programs. These incentives can take the form of tax-free credits, gift cards, or deposits into employer-sponsored accounts, reducing the cost of devices, supplies, or follow-up care.
During the development of her Ways to Save Money series in 2025, Sally described how she once ignored her workplace wellness portal for years. She had assumed the program consisted only of step challenges and generic newsletters. But when she finally opened the portal, she found reimbursements for preventive care and chronic-care resources she already used.
“I realized those points could help me pay for things I was already doing. My compression gloves, part of my therapy copays, even some of my preventive visits. It made caring for myself feel less like a financial burden.”
— Sally Figueroa
Her experience mirrors national data: wellness programs often provide meaningful savings, but only when employees know to claim them.
COBRA as a Lifeline During Job Loss or Transition
For people with chronic conditions, losing employer-based insurance can cause immediate fear about medication access or treatment continuity. COBRA, the federal continuation-of-coverage program, exists to prevent dangerous gaps in care. The United States Department of Labor explains that eligible employees can continue their existing coverage for a defined period if they elect COBRA within the required timeframe.
National diabetes and chronic-illness organizations emphasize that COBRA can be critical for people who rely on life-sustaining medications. These groups highlight examples where patients maintained access to essential treatments during layoffs, restructurings, or extended job searches.
Sally reflected on this during a 2023 conversation about employment transitions. She explained that stability in medication access mattered as much as the medications themselves. Maintaining coverage through a job change helped her avoid setbacks in treatment.
“Being able to keep my medications during stressful transitions meant I did not lose progress. The stability mattered just as much as the medication.”
— Sally Figueroa
Cafeteria Plans and Pre-Tax Dollars: The Benefit Many People Skip
Section 125 cafeteria plans allow employees to use pre-tax dollars for healthcare, dependent care, and eligible medical expenses through accounts such as Flexible Spending Accounts, Health Savings Accounts, and Limited Purpose FSAs. Yet employer surveys show that many employees do not enroll, often because the terminology feels unfamiliar or the details seem complicated.
Government guidance notes that these accounts reduce taxable income and can significantly lower annual out-of-pocket spending. Chronic-illness advocacy groups report that pre-tax contributions help patients pay for medications, supplies, and frequent specialist visits at a discounted effective rate.
During a 2024 recording Sally described how she once ignored HR messages about pre-tax accounts. When she finally explored the options, she realized that she had been paying out-of-pocket for expenses that could have been reimbursed.
“I found out I could have saved money on things I was already buying. Once I understood the benefits, I stopped skipping those emails.”
— Sally Figueroa
Her realization is common. Many households discover that pre-tax plans function like quiet, ongoing discounts.
HR as a Hidden Resource, Not Just an Administrative Office
Nonprofit workplace-navigation programs often highlight that HR departments offer more support than employees realize. Beyond hiring documents, HR teams can connect employees to flexible scheduling, short-term disability programs, telehealth tools, and third-party advocacy hotlines that assist with coverage questions and insurance appeals.
Organizations such as Patients Rising note that many employers now contract with advocacy services that help employees resolve billing issues, navigate prior authorizations, or compare medical-benefit categories. These supports can reduce both financial and emotional strain, especially for those managing complex chronic conditions.
When Leaving a Job: Preserve Everything You Can
Advocacy groups and government agencies recommend several steps for people leaving an employer:
Before the last day:
- Spend down FSA funds
- Refill medications
- Complete preventive visits
- Request updated referrals or authorizations
After employment ends:
- Elect COBRA within the required window
- Transfer Health Savings Account funds
- Request proof of prior coverage for the next insurer
These steps help protect continuity of care and reduce unexpected costs during a transition.
The “Invisible Raise” Inside Your Benefits Package
Employee-benefits research describes wellness incentives, pre-tax accounts, and employer reimbursement programs as functioning like invisible raises. They increase a household’s usable income without raising taxable wages. National benefits-trend reports estimate that optimizing these programs can create thousands of dollars in annual savings, especially for people managing chronic illness.
Sally summarized the impact during a 2024 cost-planning session:
“Once I understood my benefits, it felt like the system finally had something to give back. It changed how I planned my year.”
— Sally Figueroa
For many employees, the first step toward affordability begins not with insurance changes but with understanding the benefits they already have.
Our Pay It Forward Approach
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Verification Note
All links opened and verified active — December 05, 2025 (Europe/Madrid).
All sources are government, nonprofit, peer-reviewed, or nationally recognized healthcare institutions directly supporting claims made in this article.
Kaiser Family Foundation Employer Health Benefits Survey 2024 – https://www.kff.org/report-section/ehbs-2024-summary-of-findings/
Willis Towers Watson Global Benefits Trends Report 2024 – https://www.wtwco.com/en-US/Insights/2024/01/global-benefit-trends-2024
Society for Human Resource Management Employee Benefits 2024 – https://www.shrm.org/resourcesandtools/hr-topics/benefits/pages/employee-benefits-survey.aspx
United States Department of Labor COBRA Guide – https://www.dol.gov/sites/dolgov/files/EBSA/about-ebsa/our-activities/resource-center/publications/An-Employees-Guide-to-Health-Benefits-Under-COBRA.pdf
American Diabetes Association Health Insurance Resources – https://diabetes.org/tools-resources/health-insurance
IRS Publication 969 HSAs, FSAs, HRAs – https://www.irs.gov/publications/p969
National Multiple Sclerosis Society Employment and Insurance – https://www.nationalmssociety.org/Living-Well-With-MS/Work-and-Home/Employment
Patients Rising Workplace Advocacy Resources – https://patientsrising.org/workplace-resources/