Keys to Increasing HDHP and HSA Adoption: An Infographic

To increase Health Savings Account (HSA) and High Deductible Health plan (HDHP) adoption, TPAs and employers should understand what drives employee behavior. The following infographic outlines the keys to increasing HSA and HDHP adoption.

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HSAs and High Deductible Health Plans: A Guide to Increasing Adoption

Offering Health Savings Accounts (HSAs) paired with a High Deductible Health Plan (HDHP) are an important part of many employer-sponsored benefit plans. To improve plan and account adoption, employers, brokers, and third-party administrators need to understand employees’ concerns and how an HSA with HDHP can address them.

5 Causes of Financial Stress

American workers are deeply concerned about the affordability of healthcare and retirement. According to a recent study:

  • 63% worry about not having enough money for retirement
  • 56% are concerned about paying medical costs for serious illness or accident
  • 52% are afraid of maintaining standard of living they enjoy
  • 43% are stressed about paying medical costs for normal healthcare
  • 40% area concerned about not having enough to pay normal monthly bills

Barriers to HSA adoption

Common reasons people will not open an HSA:

  1. Do not recognize the account’s value and benefit to them
  2. Healthcare benefit accounts are hard to understand
  3. Believe HSAs are for wealthy people

Keys to Increasing HSA Adoption

To increase HSA adoption, employers, third party administrators, and benefits brokers should promote how the account can alleviate those causes for financial stress.

  1. Affordable premiums: HDHPs cost less up front, allowing HSA owners to save up for healthcare when they need it.
  2. Keep the money: HSA rollover lets account owners keep all unused funds and it’s their account for life.
  3. Tax savings: It lowers their payday taxes and withdrawals are tax-free for qualified healthcare expenses.
  4. Tax-free growth: Interest and investment earnings are not taxed.
  5. Use the account now: Doctor and dental visits, OTC and prescription meds, first aid items, and lots more
  6. Use the account later: Use it in retirement like a 401(k) or as a Medicare supplement.
  7. Employer seeding: Companies can offer incentives for enrollment and meeting wellness program goals.
  8. Education: Year-round employee engagement and education campaigns can help improve understanding and usability.

DataPath Summit is an all-in-one, cloud-based HSA platform, with integrated investments and banking. The company is also the creator of the award-winning employee engagement program The Adventures of Captain Contributor.

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