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.
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.
Top 5 Causes of Financial Stress
American workers are deeply concerned about the affordability of healthcare and retirement. According to a recent study:
- 72% worry about the cost of healthcare in retirement
- 68% are concerned about outliving their retirement savings
- 67% are afraid of not having money to pay their bills if someone loses their job
- 67% are stressed about having money to cover out-of-pocket medical costs
- 66% are concerned about having to rely on Social Security/Medicare in retirement
Barriers to HSA adoption
Common reasons people will not open an HSA:
- Do not recognize the account’s value and benefit to them
- Healthcare benefit accounts are hard to understand
- 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.
- Affordable premiums: HDHPs cost less up front, allowing HSA owners to save up for healthcare when they need it.
- Keep the money: HSA rollover lets account owners keep all unused funds and it’s their account for life.
- Tax savings: It lowers their payday taxes and withdrawals are tax-free for qualified healthcare expenses.
- Tax-free growth: Interest and investment earnings are not taxed.
- Use the account now: Doctor and dental visits, OTC and prescription meds, first aid items, and lots more
- Use the account later: Use it in retirement like a 401(k) or as a Medicare supplement.
- Employer seeding: Companies can offer incentives for enrollment and meeting wellness program goals.
- 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.