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Employee HSA Guide

Lively · May 15, 2018 · 3 min read

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Helping employees understand the benefits of an HSA (like any new HSA user), takes time and resources. In order to make the HSA education and engagement process easier for employers and employees, we have outlined our best practices.

Our employee HSA education guide will help you get HSA strategies in place from day 1 so employees can take advantage of the triple-tax benefits immediately.

HSA Employee Education Tips

Opening, establishing and contributing to an HSA should be easy. It shouldn’t be rocket science, that’s at least what we think at Lively! Here is what every employee needs to know to get started with their new HSA:

  1. Confirm HSA-Eligibility

  2. Understand Contributions Limits

  3. Open and Establish their HSA

  4. How to Rollover or Transfer an Existing HSA

  5. Automating HSA Contributions

  6. Use an HSA Debit Card for Eligible Purchases

  7. Review HSA Investment Options

No employer health or financial situation is the same. Once employees have opened an HSA, customizing HSA strategies can help each and every eligible employee take advantage of their HSA benefits. This will better ensure success (and renewal). Let’s look at two likely employee HSA scenarios:

  • HSA Saver – HSA savers are more focused on the long-term savings value of an HSA. They can invest their funds or simply take advantage of FDIC-Insured interest bearing HSA accounts. Thereby taking advantage of compound interest and save HSA funds for future health costs.

  • HSA Spender – These employees are using pre-tax HSA funds to pay for expected and unexpected health costs. They can use their dedicated HSA funds to reduce their out-of-pocket health expense liability.

Many HSA account holders are a mix of both. Helping employees save for health costs today and plan for anticipated health costs well into retirement will only increase HSA adoption.

Employee Engagement and Support

Things come up. Employees get stuck. We get it. We have been through it ourselves. Making sure on-demand support options are available for employees is crucial in this process. It saves everyone time. Employee HSA education is an ongoing process. So we created an on-demand resource center to help – from an HSA FAQs to HSA saving calculators. We backed it all up with a dedicated customer service team to answer employee questions via email, phone or chat (via our website).

Don’t Forget! Talk About Retirement & Health Costs

Many employees are stuck on a year-to-year ferris wheel when it comes to health insurance and cost planning. Employees are forced into rising yearly health insurance premiums and out-of-pocket costs. Not planning for health costs in retirement – which are expected to exceed $275,000 per couple – can be a financial mistake. Employees can use their HSA to plan and save for retirement. In fact, an HSA might be the new stealth IRA.

Opening an HSA is easy (at least at Lively). Helping employees understand the value of an HSA should be too. Use this employee HSA guide to fast-track benefits education to save employees time.

Lively

Lively

Lively is the modern HSA experience built for—and by—those seeking stability in the ever-shifting healthcare landscape. By harnessing modern innovation and deep industry expertise, Lively is committed to bridging today’s savings with tomorrow’s unknowns. Unlike traditional institutions hindered by bureaucracy, Lively’s commitment extends beyond initial set up to providing dedicated, ongoing support and education for every step. So each HSA can reach its maximum potential with minimal headache.

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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