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How the Fastest-Growing HSA Provider Gets Their Employees to Adopt HSAs

Jessica Pfisterer · August 3, 2023 · 5 min read

People first benefits HR thought leadership

At Lively, we’re all about making HSAs more accessible and easier to use. That’s no small thing considering that only 17% of employees without HSAs are saving for future healthcare expenses, according to a 2022 Bank of America report. Encouraging employees to adopt HSAs makes sense for employers, too. It can be a powerful recruitment and retention tool that makes for happier, healthier employees. There are also some financial benefits for employers.

This is all to say that HSAs can be a win-win for everyone. In my experience, it comes down to getting your employees to see their value and removing any barriers to enrollment. At Lively, we tackle that in a few different ways. As Lively’s VP of People, I’ve seen what can happen when employers prioritize HSA education. Here’s what that looks like in practice.

Driving adoption is critical but easy to overlook

You may have put a lot of time, energy, and good intentions into your benefits program—and that’s great! Putting employees first is always the most important thing. But even the best HSA program can have a lackluster reception if employees aren’t made aware of how it works. Driving adoption is key, but it’s often a missing step when an employer rolls out new benefits.

To help drive benefits adoption, it’s helpful to put yourself in your employees’ shoes. As an employee, being presented with a comprehensive benefits plan might feel overwhelming, especially if there’s a lot of information to sort through. At Lively, HSA education is folded into employee onboarding. We cover everything from how they work to the nuts and bolts of enrollment. Building out a simple education campaign can go a long way. The goal is to drive home the benefits of HSAs and support employees in signing up.

How Lively educates our employees about HSAs

Again, HSA education is baked into the employee experience at Lively. Adoption is high because our employees understand what an HSA is and how it works. That’s an important detail that directly drives enrollment. We share information about:

We also discuss the perks of an HSA, which include the ability to:

How you share HSA information is up to you. You might opt for an interactive workshop (in person or virtually) where employees can ask questions and sign up on the spot, a series of email campaigns educating them on different aspects of HSAs and walking them through the signup process, a resource hub with self-guided training, or benefits offices hours, where employees can drop in and ask questions. Whichever approach you choose, you’ll want to do this during new hire onboarding and again each year during Open Enrollment. Often, your benefits broker will be willing to partner with you or to run these sessions themselves, and to provide materials for you to use to educate your employees.

Reasons to contribute to employee HSAs

Employers have the option to contribute to HSAs on behalf of their employees. This is something Lively does for a number of reasons.

It can help you attract the best talent

Benefits always matter; even more so in a competitive job market. The truth is that employees care about more than just their salary. They’re also looking at benefits like health insurance, paid time off, parental leave policies, flexible work arrangements, and more. HSAs are a valuable part of this package. They show potential new hires that you’re ready to invest in their well-being—along with their financial health—if you’re willing to contribute to their HSAs. That Bank of America report mentioned earlier found that when an HSA is offered, 89% of employers make a contribution.

It can go a long way in terms of employee retention

Offering robust employee benefits isn’t just good for recruitment. It can also set the stage for employee satisfaction and loyalty. To qualify for an HSA, employees must be enrolled in a high-deductible health plan. These usually have lower monthly premiums when compared to low-deductible plans. Some employers will pick up the cost themselves to encourage employees to choose that plan and adopt an HSA. It’s another worthwhile employee benefit to consider.

It can help employers save money

Opting for a high-deductible health plan will likely lead to lower premiums—and reduced healthcare costs for employers. You might choose to redirect some or all of those savings toward employee HSA contributions. What’s more, these contributions count as a tax-deductible business expense for employers. When taken together, it’s easy to see how HSAs can help companies save money while they support their employees.

Getting your employees on board with an HSA doesn’t have to be complicated, but it will likely require some time and attention upfront. The end result is usually worth it. Connect with Lively to bring your benefits package to the next level.

Jessica Pfisterer

Jessica Pfisterer

As Vice President, People at Lively, Jessica leads the recruiting, HR, people operations, and employee experience functions. She brings an innovative approach to people teams and company culture based on her experience leading people teams at fast-growing startups. Her expertise in total rewards, engagement, and leadership allows her to partner with senior leaders on strategic people initiatives to drive the business forward. Jessica was the first people operations hire at MuleSoft, where she built and managed the function during international hypergrowth. At Greenhouse, she again started and grew the people operations function, along with the employee experience function, during a period of sustained growth. Jessica is a Senior Certified Professional by the Society for Human Resource Management. She holds a JD from Georgetown University and is an inactive member of the California Bar Association.

piggy bank on pink background

Benefits

2023 and 2024 HSA Maximum Contribution Limits

Lively · May 16, 2023 · 3 min read

On May 16, 2023 the Internal Revenue Service announced the HSA contribution limits for 2024. For 2024 HSA-eligible account holders are allowed to contribute: $4,150 for individual coverage and $8,300 for family coverage. If you are 55 years or older, you’re still eligible to contribute an extra $1,000 catch-up contribution.

comparing hsa versus fsa

Benefits

What is the Difference Between a Flexible Spending Account and a Health Savings Account?

Lauren Hargrave · February 9, 2024 · 12 min read

A Health Savings Account (HSA) and Healthcare Flexible Spending Account (FSA) provide up to 30% savings on out-of-pocket healthcare expenses. That’s good news. Except you can’t contribute to an HSA and Healthcare FSA at the same time. So what if your employer offers both benefits? How do you choose which account type is best for you? Let’s explore the advantages of each to help you decide which wins in HSA vs FSA.

Benefits of HSA employer matching

Health Savings Accounts

Ways Health Savings Account Matching Benefits Employers

Lauren Hargrave · October 13, 2023 · 7 min read

Employers need employees to adopt and engage with their benefits and one way to encourage employees to adopt and contribute to (i.e. engage with) an HSA, is for employers to match employees’ contributions.

Disclaimer: the content presented in this article are for informational purposes only, and is not, and must not be considered tax, investment, legal, accounting or financial planning advice, nor a recommendation as to a specific course of action. Investors should consult all available information, including fund prospectuses, and consult with appropriate tax, investment, accounting, legal, and accounting professionals, as appropriate, before making any investment or utilizing any financial planning strategy.

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