Transferring employees’ benefits accounts can seem like a daunting task at first. But when you find the right provider, they make the transfer process quick, seamless, and inexpensive. HSAs can be transferred at any time (during open enrollment or throughout the year), so companies can take their time in finding the best provider for their company and transfer funds quickly when they're ready so employees’ maintain easy access to their hard-earned savings.

When you should look for a new HSA provider for your company

There are many reasons a company might look for a new HSA provider. Common complaints are: hidden fees, archaic technology, insufficient investment options, and poor customer service. If your current HSA isn’t meeting the needs of your employees or it’s making administration difficult for your HR team, it’s time to look for a new HSA provider. In fact, recent research by Lively found that the most common reason for switching benefits providers was employee feedback, which drove one-in-four HR leaders to look for a new provider.

One of the best HSA features is its portability. HSAs can be transferred from one provider to another at any point in the year. That means companies can choose to transfer their employees’ HSAs in a bulk transfer right open enrollment, or later, once the hectic benefits renewal season has subsided. So if your benefits team was focused on renewing or switching other plans during open enrollment, they still have time to trade out a less-than-ideal HSA provider for a better one.

What to ask before transferring to a new HSA provider

Not all HSA providers are created equal. Their differing pricing structures and administration procedures can make them either a pleasure or a pain to deal with. Here are some qualities you should look for in a new HSA provider.

What is your pricing and fee structure? 

Excessive or hidden fees can eat into employees’ savings. They can also make offering an HSA to your workforce expensive. Lively offers transparent pricing for employers and no monthly maintenance fees or investment fees for employees so they get to keep more of their savings.

Do you offer paperless administration?

The advancement of digital platforms like Lively’s makes paper documentation unnecessary. If an HSA provider requires the employer or employee to complete paper forms, it could delay employees’ access to their accounts. If you choose to leave this provider, it could delay that future transfer.

How does your platform integrate with my current systems and software?

Lively’s proprietary technology enables our platform to quickly and easily integrate with a company’s existing payroll and benefits administration systems. This improves plan administration while reducing the time team members must spend managing benefits. If you’re going to transfer your HSA, you want to look for a provider that offers a similar service type so that the transfer process goes smoothly.

What HSA investment options do you offer?

The ability to invest HSA funds is gaining popularity with account holders. So if you’re going to transfer your employees’ HSAs, you want to look for a provider that offers robust HSA investment options. Even better, if the HSA provider offers different types of investing, you’ll be able to appeal to a broader range of employees. Lively offers two types of investment accounts: a self-directed account that allows employees to choose their investments, and a guided portfolio that automatically invests employees’ contributions based on their survey answers. You also want to ask about fees associated with investments.

Do you have investment minimums?

Some HSA providers have high balance thresholds that employees must meet before they’re able to invest their contributions. This hamstrings employees’ abilities to grow their savings faster, and can thwart their goals for health and financial security. To support employees’ ability to grow their account balances, look for an HSA provider like Lively that has low or no minimum savings requirements for investing.

What support do you provide during onboarding? 

Transferring employee benefits is a high-stakes endeavor. You want to make sure the HSA provider you’re transferring to will be hands-on during the process so that employees maintain access to their accounts. Before signing up, ask potential providers’ sales teams about the level of support you will receive during the transition process and beyond. Lively throughout onboarding and ongoing, offers a dedicated customer success team to ensure your HSA transition is a success.

Do they have good reviews on G2 and other trusted platforms?

It can be hard to find authentic B2B peer reviews on software and programs. The G2 marketplace provides a forum for customers to leave product reviews that haven’t been incentivized. Lively has a five star rating from 89% of its users on G2. You want to look for an HSA provider that has authentic positive reviews for the features you care about.

What to avoid in an HSA provider

There are certain characteristics of an HSA that can make transferring your employees current accounts and ongoing administration burdensome and expensive. The following are a few red flags to be wary of when shopping for a new HSA.

They have a high or unclear fee structure

Fees like monthly maintenance fees, charges for paper statements or outbound transfers, and account closure fees are all red flags. If exit fees are high it can limit the portability of the HSA and be cost-prohibitive for the company and account holders to move to a better HSA in the future. Low interest yields are another hidden cost HSA account holders could experience. That’s because they could end up paying more in fees than they earn in interest.

They have poor reviews on G2

If the HSA provider has poor G2 reviews, make sure you read them carefully to decide if these customers’ complaints could post a challenge for your company or employees. Look for reviews about fees, customer service, the transfer process, and the implementation process. 

They require paper forms

Paper forms can be cumbersome and make onboarding and the transfer process take longer than it needs to, as well as add extra burden to your administrative team. 

They distribute employees’ HSA balances via check

If you decide you want to transfer employees’ HSAs to another provider, the final step in the process is for the incumbent HSA provider to distribute the funds in employees’ accounts to the new HSA provider for deposit. Distributing HSA balances via check instead of wire or ACH transfer can delay the availability of funds and lengthen the transfer time frame. 

They don’t support investing HSA contributions

The interest rate most HSA providers offer for their savings account is less than 1%. When you compare that to average annual market return on investments of 10%, a savings only HSA provider will only hamstring your employees’ ability to grow their savings.

They offer minimal support during transfer process

The HSA transfer process sets the stage for your relationship with this HSA provider. If they’re not going to be hands-on in the beginning to ensure your company and employees are supported throughout the onboarding and transfer process, that doesn’t bode well for the level of customer service they will provide later.

What to expect when transferring your employees’ HSAs to Lively

When you choose Lively as your new HSA provider, you can trust that you’ll receive expert support every step of the way. While the type of transfer is dependent upon the policies and procedures of your incumbent HSA provider, Lively’s in-house team will work with you and your current provider to ensure the process goes as smoothly as possible. We have rapidly and successfully transferred accounts from 90+ providers and 500+ financial institutions so we know how to make the process efficient and transparent. We will also work with you to determine the best time to transfer your HSAs based on your current provider’s policies.

Below you will find the steps for a standard bulk HSA transfer.

1. Sign up with Lively.

2. Complete the digital HSA transfer forms.

3. Lively submits the transfer forms to your current HSA provider.

4. The current provider sends funds to Lively. Lively processes funds and makes them available in employees’ HSA accounts.

Lively is typically able to complete a standard bulk HSA transfer in 2-4 weeks, but that timeline is highly dependent on the incumbent HSA provider. Once the accounts have been transferred, employees can securely access them and reimburse for any previously incurred qualified medical expenses. Lively will also continue tracking their progress toward meeting their deductible.

Get started with Lively

If you’re ready to work with an HSA provider that serves as a trusted partner and helps your team and employees get the most out of their HSA, reach out to Lively today.