HSAs and the Modern Benefits Package
How HSAs are part of a robust, flexible, cost-savings benefits package to serve employees at all stages of their career.
Despite an uncertain economy, employers are still committed to providing their employees with a competitive, comprehensive benefits package.
HSAs remain at the center of a benefits strategy that flexibly meets employees needs, drives retention, and supports employee cost saving and happiness. When an employer offers an HSA alongside post-tax accounts like Medical Travel Accounts and Lifestyle Spending Accounts, as well as HSA-compatible Dependent Care and Limited Purpose Flexible Spending Accounts, they offer their employees a robust benefits package while reducing their tax burden.
of HR leaders say employee feedback is the most trusted source of information about benefit trends and providers.
added benefits to attract and retain employees in the past year.
say that offering competitive financial benefits are as much, or more, important that last year in order to ease employee financial stress.
How can HSAs work with other benefits to support the whole employee?
HSAs can be paired with a suite of pre- and post-tax benefits in order to flexibly and holistically support employees, boost productivity, and drive loyalty and retention, no matter where they are at their phase of life or career.
Health Savings Accounts
When paired with a cost-saving High Deductible Health Plan, offers tax-advantaged savings and spending on qualified medical expenses and the ability to invest HSA funds and build retirement savings. It can also serve as as supplemental retirement account, especially attractive for those who may be maxing out their 401(k) or IRA. Learn more.
Dependent care and Limited Purpose Flexible Spending Accounts
Pre-tax FSA accounts for dependent care, such as for children or elderly parents, and expenses associated with vision and dental care, are HSA compatible. These use-it-or-lose-it accounts enable HSA dollars to go further. By designating pre-tax dollars for specific expenses, employees can save their HSA dollars, which never expire, for larger or future expenses. Learn more.
Lifestyle Spending Accounts
These post-tax, employer funded reimbursement accounts flexibly cover a range of expenses not covered by health insurance and are HSA-compatible. They can help ease employees' financial stress by paying for a range of expenses they are already paying for out of pocket. Covered expenses can include gym memberships, wellness services, family planning expenses including fertility treatment, surrogacy, and adoption expenses, pet care, remote work and home office expenses, entertainment, and travel. These plans are fully customizable by the employer. Employers only pay for what employees use. Learn more.
Medical Travel Accounts
These post-tax, employer funded reimbursement accounts enable employees to access care not immediately available in their area by paying for transportation and lodging expenses associated with medical travel. Offering an MTA ensures equity of access to care across a distributed workforce, supports Diversity, Equity, and Inclusion efforts, and enables employees to access the care they need no matter where they live. Post-tax MTAs are HSA compatible. Learn more.
Analysis and action items for brokers and employers
Understand what employees want and look for a “noiseless” provider to meet their needs.
Survey employees to find out what’s important to them.
Understand what benefits employees value, and what is working and not working for them from your providers.
Find a benefits provider that offers multiple types of accounts so you can “bundle” benefits for a seamless employee and HR administration experience.
Ensure that this provider offers easy-to-use technology, excellent customer service, and employee education to support benefits adoption.