Boosting HSA Participation Through Education
High Deductible Health Plans (HDHPs) with Health Savings Accounts (HSAs) have become increasingly popular among employers of all sizes. Increasing participation in HSAs is typically at top of mind each year around enrollment time. It is important for employees to understand how to use their HSAs so they can use them properly. Encouraging your employees to contribute to their HSAs is beneficial to both parties.
Educate Employees on the Benefits of HSAs
Educating your employees on the benefits of HSAs is one of the most effective ways to increase HSA participation. It’s important your employees understand they’re only eligible to set up an HSA if they have an HDHP. If an employee is reluctant to choose an HDHP, learn how to help them make a smooth transition to an HDHP in our blog post, Tips for Transitioning to a High Deductible Health Plan.
Here are some key benefits of HSAs to share with your employees:
HSA funds can be spent tax-free on eligible medical expenses for them, their spouse and their dependents. Even if the spouse isn’t covered on the employee’s HDHP, the spouse may be eligible to use the HSA for eligible medical expenses.
HSA contributions and distributions can be made for dental and vision procedures. A common misconception is that because dental and vision costs do not go towards a medical plan’s deductible, they cannot be paid for with HSAs.
It is also possible to put money in an HSA from outside a paycheck contribution. For example, an HSA participant could take a couple thousand dollars out of their savings and move it to their HSA to pay for their child’s braces.
HSAs can also be used to save for future expenses. If a participant knew their child was going to need braces in five years, they could use their HSAs to start saving early for the future costs of braces.
Additionally, participants can also invest their funds upon reaching a minimum amount in their HSA.
Host a Professional Development Day
During a professional development day, employees can choose educational sessions and breakouts to learn about a variety of topics, similar to a conference. This will allow your employees to take a day to fully learn about not just their HSAs but other benefits too. Hosting this several times a year will ensure your employees are fully educated on how to use their HSAs.
Offer a Variety of Education Options
Mandatory meetings and multiple education opportunities ensure employees will receive the information they need to make an informed decision. Group or individual meetings, online resources, and individual Q&A sessions are all other great types of educational opportunities.
At American Fidelity, we provide the following opportunities throughout the year for our customers at no additional charge:
• One-on-one meetings (virtual and in person)
• Presentations to your committees and/or union leaders
• Evening meetings so spouses can attend
• Professional development classes
Learn more about how to educate your employees on HSAs ►
This blog is up to date as of March 2021 and has not been updated for changes in the law, administration or current events.
Shop for Eligible Items on the HSA Store
You may purchase HSA-eligible items online at the HSA Store. Browse medical supplies, over-the-counter medication, prescriptions, and more.
