How to increase HSA participation with a wellness program
If you offer your employees a qualified high-deductible health plan, a Health Savings Account (HSA) is a great option for those seeking to save for healthcare expenses while reducing their tax liability. HSAs offer several key benefits, including tax-free contributions, growth, and withdrawals for eligible healthcare expenses.
However, many employees still do not participate when given the opportunity, often due to a lack of understanding or awareness of their benefits. This is where a wellness program can play a critical role in helping to increase HSA participation.
What is a wellness program?
Wellness programs are designed to create a culture of health and fitness in the workplace. These programs aim to engage employees about their health and incentivize employees with benefits like premium discounts, cash rewards, and gym memberships for participation in health and wellness initiatives. This is a great way to help employees take control of their health and well-being, leading to an overall more satisfied and healthier workforce.
Using Wellness to Increase HSA Participation
HSAs offer flexibility in how contributions are made and how the funds can be used. Since funds roll over year-to-year, employees can treat their HSA like a savings account for eligible medical expenses without having to worry about planning expenses for a given plan year.
Employers can take advantage of this flexibility by offering employer contribution incentives for participating in their corporate wellness program. This might look like providing an annual employer contribution for participating in a 5k run, going to the gym a certain number of times per month, or scheduling an annual wellness check.
These types of incentives encourage employees to keep wellness at the forefront of their mind. Additionally, they can further motivate employees to utilize an HSA and take advantage of the potential savings and tax benefits.
Engagement is Key
Simply offering a wellness program and HSA is not enough. You should have a plan for communicating and engaging with employees about the value of your program and why they should participate. This should be done annually (before, during and after open enrollment) to keep employees fully engaged. It’s also important to provide multiple channels of communication, including one-on-one sessions, to ensure each employee receives personalized guidance based on their situation.
By providing robust benefits education and helping employees understand more than just the basics, you can drastically increase participation in your program.
Pairing a wellness program with an HSA can be a powerful tool to increase participation within your organization. Additionally, by engaging with your employees about their health and offering incentives for participation, you have the ability create a healthier and happier workforce. Don’t hesitate to get started. There is no better time than now.
This blog is up to date as of November 2023 and has not been updated for changes in the law, administration or current events.