Open enrollment is the defacto time to review and select benefits options. This review period starts even sooner for employers and HR professionals. Some benefits offerings are not limited to open enrollment. This creates an opportunity to add midyear benefits, like a health savings account (HSA).
Healthcare costs continue to increase (for both employers and employees). Adding benefits that mitigate against these costs reduce financial stress for employees.
There are many benefits elections that can’t be changed mid-year without a ‘qualifying life event’. Health insurance tops that list. How can you add financial security if you can’t change health insurance plans mid-year? The answer is an HSA.
Employers can add an HSA for employees and employees can switch HSA providers at any time. HSA enrollment is not limited to open enrollment. Adding an HSA for employees creates a clear path to pre-tax savings with no expiration date.
There are no calendar restrictions for opening an HSA. Delaying opening an HSA only limits future health savings for employees. This is a true HR disservice to qualified employees.
Are Midyear Benefits Changes Worth it? Should I add an HSA?
Open enrollment is a hectic time for employers and HR professionals. Reviewing benefits midyear creates a low-stress opportunity to really determine what works best for employees. It also helps employers to round out their health offerings. This will jumpstart benefits offering for next year.
It is a great time to educate employees about benefits like HSAs to help them save for health costs the same way they save for retirement (like a 401(k)). Waiting will only make open enrollment more hectic next year and your employees less prepared to save for health costs this year.
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.