The Lively Blog



Stay up to date on the latest news delivered straight to your inbox

A Letter to Employers: Why not offering an HSA is costing you money, time and employee productivity

Lively · May 24, 2017 · 5 min read


Time, money and employee productivity – three things that drive your business profitability but are often underperforming. See how HSA benefits can improve all three, and even pay for perks like employee massages.

Dear HR Manager, Office Admin and CEO,

We know you hate costs that drive the value and productivity of your company into the ground. They make you feel restless and anxious. They pull at your hairline (or waistline) and turn your dreams into nightmares. It doesn’t matter if you are running a small business, startup or Fortune 500 company – higher costs and lower productivity are a recipe for disaster. It forces lean times, bad numbers, disgruntled employees, weary clients and angry shareholders. I’m sure we can agree on that, right?

There are so many moving parts of your business and at times it seems impossible to lock one down, take it off your to-do list and move on. Healthcare is at the top of that list and seemingly impossible to remove. While the political tug of war on healthcare might be great news for News Editors, Facebook comments and talking heads, it sure isn’t helping you sleep at night.

Your employees feel the same way. While empathy is not a requirement (although often appreciated), understanding the impact of healthcare on your bottom line is. Health insurance premiums for employers account for more than $4,708 per employee each year. All indications are that this number will increase in the coming years (It is expected to raise by 5% in 2017). Do I have your attention? Like many employers, you might be offering a High Deductible Health Plan (HDHP). Don’t feel like you are alone on a desert island – there are over 21 million HSA account holders accounting for 29% of all employee sponsored health plans. The number of employees enrolled in HDHPs has increased 20% in the last two years. We expect these trends will accelerate in the next several years as costs just continue to rise.

Let us show you why this should matter to you:

  1. Employee costs. Healthcare costs are the #1 source of credit card debt for Americans. Individuals pay $9,990 per year, on average. Your employees are working without a safety net. How do you think this affects your company, your culture and your profit margins?

  2. Employee Productivity. You live and die by your employee productivity. Did you know that over $227 billion is wasted each year from “lost productivity”? This includes health-related issues such as sick days, but does not include the normal stress of day-to-day life that limits overall productivity (like those health costs we mentioned above).

  3. Business Impact. Employee culture, recruitment, and retainment are huge parts of your company value, offering and market value. If you are unable to recruit and retain employees how can you grow your business? Benefits offerings are an easy way to differentiate your company in the market without overcompensating with increased salaries.

So what is the bottom line and how can we wrap this into a nice bite size morsel? Adding low cost HR and healthcare benefits that will increase your employee’s productivity are a simple, direct and a positive influence in this cost vs. benefits equation. Enter the Health Savings Account. HSAs sure aren’t new to the block, but their importance in your benefits offering might be. And you don’t need to wait until open enrollment; you can add an HSA anytime, with a qualifying HDHP. Let’s dissect their value for you:

HSA Benefits

  1. Triple Tax Benefit? HSAs allow for tax-deductible contributions, tax-free interest and tax-free withdrawals (for medical expenses). Save more for today, tomorrow and 30 years from now. Einstein called compound interest the “most powerful force in the universe.” Use it to your advantage!

  2. Pay for health, save for retirement. All of that money you add to your HSA per year ($3,400 for individuals and $6,750 for families in 2017) is eligible for personal use (non health-related expenses) after you turn 65 years old. Please note, it is subject to income tax, but it’s like an extra 401k you never knew about.

  3. Choose your own adventure (investments and provider). Healthcare can be a rigid process, but HSAs offer unique flexibility. With any qualified HDHP, you can choose your own HSA provider and allow your employees to have the same flexibility in their investment choice. Even if and when you switch insurance providers, your HSA doesn’t have to change! Bet you didn’t know that.

  4. HSA vs. FSA. The “use it or lose it” mentality of an FSA (Flexible Spending Account) limits its value to your employees. Creating more flexibility and allowing for your employees to save for short and long-term health costs is in your and their best interest. If you want to dive in head first, check out our detailed comparison here.

  5. Sign up with Lively in 5 minutes. So easy! Ok ok, this might not be universally true, but it is with Lively! Sign up today.

  6. Pay with your debit card. Could there be an easier way to access your HSA? With this option, you can pay in real time for your health expenses or keep detailed receipts and get reimbursed when you need to – and NO, we don’t charge you a fee to get reimbursed. Your HSA has more fiscal options than you might have thought!

  7. Massages are included? Really? Yes really, massages can be paid for with your HSA dollars if prescribed by your doctor. What a nice perk!

Employee-sponsored healthcare plans are changing, but not going away anytime soon. We don’t want to suggest we can solve for all your healthcare problems, but if you can easily check that box on your to-do list, provide a great service and increase your bottom-line, well then, what are you waiting for? Add an HSA to your HDHP.



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


2024 and 2025 HSA Maximum Contribution Limits

Lively · May 9, 2024 · 3 min read

On May 9, 2024 the Internal Revenue Service announced the HSA contribution limits for 2025. For 2025 HSA-eligible account holders are allowed to contribute: $4,300 for individual coverage and $8,500 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


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.



Stay up to date on the latest news delivered straight to your inbox