Employees are busy. You are busy. Why would you add a health benefit that requires more time? The most likely explanation is that new benefits will save your company or your employees’ money. A health savings account (HSA) does both.
HSA Tips for Employees
Employers can couple an HSA with an HDHP to reduce health insurance costs and allow employees to save dedicated health funds for years to come. Win-Win.
HSA Education – Start Early This Year
Open enrollment season is daunting. Why not start HSA education early this year? Helping employees understand an HSA could also influence which health insurance plans they choose during open enrollment.
The more employees who understand the triple-tax advantages of an HSA, the better they are equipped to save money for healthcare cost.
An HSA is one of the few benefits employees can enroll in, outside of open enrollment. This means any employees who have an HSA-qualified plan this year can open an HSA ASAP. This will create savings for qualified out-of-pocket medical expenses this year and build a healthy nest egg for next year.
HSA Costs For Employers
When evaluating prospective HSAs, costs and integrations are likely at the top of the list. Employer-sponsored HSA costs include monthly employee enrollment costs, but watch out for account set-up or termination fees. They can increase the total monthly cost for employers. Often times, with a Section 125 plan in place, any HSA adminsitrative fee is offset by the payroll tax savings you get by putting place the plan (7.65% tax savings).
Benefits time suck can mean more frustrations and increased productivity loss for you. As an HSA administrator, you want to find benefits that increase value for your employers but don’t add more time commitments on your end. Ensuring HSA integration with your current payroll system will reduce documentation redundancies and make sure your job just a little easier.
HSA Costs for Employees
What is often missed in the employer HSA evaluation are HSA costs for employees. Employer-sponsored HSA plans often remove employee monthly fees, but what happens when that employee leaves the company? Often, employees will face monthly account fees that will steal money from their health savings.
Employees can also face many hidden fees from legacy HSA providers from like debit card usage, account statements, legal, or transfer fees. Employee HSA feature limitation can mean HSA investing limits that require cash balances thresholds just to invest HSA funds. This is a clear lost opportunity cost.
HSAs help employees save money for health cost. Don’t get stuck with providers that directly inhibit this core HSA benefit.
Starting your HSA partner evaluation early this year will reduce your stress and time loss during open enrollment. It will help any employees who want to select an HSA next year, find an HSA compatible health insurance plan. On top of that, employees who already have an HSA-eligible health plan, like an HDHP, can open an HSA today!
If you need more help with health account decisions, check out our blog. We will make you a healthcare benefits expert in no time, without any extra work or effort on your end.
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.