According to a new survey, many Americans do not understand howflexible spending accounts can save money on routineout-of-pocket health care costs.

Of the survey respondents, 86 percent had at minimum of onemisunderstanding about FSAs. One in five respondents incorrectlybelieve FSA contributions are subject to income and social securitytaxes, and more than half say they understand FSAs the least,compared to other benefit options, such as health and dentalinsurance and 401(k) plans.

Nearly 80 percent of household decision makers found itdifficult to identify expenses that qualified for FSAreimbursement, including insurance co-payments, over-the-counterproducts, dental and vision care.

"At a time when Americans are looking for ways to cut theirhealth care costs, it's important that employees take advantage ofall the benefits available to them," says Joe Jackson, CEO ofbenefits provider WageWorks Inc. "Flexible spending accounts aredesigned to help Americans save up to 40 percent on the health carethey need and already pay for out of their own pockets. That's whywe're launching a public education campaign to help consumersunderstand their benefits and learn how they can take advantage ofthese significant cost savings."

WageWorks is introducing a national public education effort,Save Smart, Spend Healthy, to alert consumers about themoney-saving potential of tax-advantaged benefits. The campaign'swebsite, www.SaveSmartSpendHealthy.com,teaches consumers about FSAs using videos, a savings calculator anda list of eligible expenses. The campaign also helps consumers planfor open enrollment under the new health care provisions andunderstand the FSA changes.

"Beyond promoting the opportunity to save, we've launched thiscampaign to help consumers prepare for changes brought on by healthcare reform, including responding to the increasing shift of healthcosts from employers to employees," Jackson adds.

A recent study by Hewitt Associates shows the average employeecan expect health care costs to triple in 2011 from rates in2001.

"Since we all have health care expenses, taking advantage of anFSA is a great way to plan ahead and save money during these toughfinancial times," says Manisha Thakor, personal finance expert andspokeswoman for Save Smart, Spend Healthy. "With open enrollmentseason just beginning in many workplaces, now is the perfect timeto learn about how you can make the most of an FSA to help you keepmore money in your pocket."

Of the survey respondents using FSAs, nearly 90 percent say theyplan to enroll again in 2011.