Crucial insights and action items
How benefits brokers and HR administrators can offer a better benefits package and drive adoption.
Looking at the behavior of Lively HSA account holders over the past year emphasized a few key action items that benefits brokers and employers can take into consideration. These will help drive HSA adoption and ensure employees are getting the most out of their benefits, while also enabling employers to maximize healthcare cost savings.
Work with an HSA provider that offers an easy-to-use platform that gives account holders options and flexibility for how they manage their account.
Enabling easy access to HSA funds, simple account management, and investment options is critical to keeping account holders engaged with their HSA. These include:
- Debit cards
- Simple to access platform on dashboard and mobile
- Easy expense reimbursement
- Multiple investment options
- Ongoing education within the product
These features are necessary features to ensure account holders use their HSA to their potential.
Investing in HSA education for account holders and employers is critical.
We know that employees often turn to their employers for benefits education. To save time, employers should work with a provider that takes the burden of education off of HR leaders and administrators. Look for a provider that offers ongoing education through email, articles, videos, webinars, and within the product itself.
Only about 40 percent of employees understand how HSAs work, according to our Employee Benefits Pulse Check survey of 250 HR leaders. To ensure employees maximize their HSA contributions, thus savings employers money on payroll taxes, continuing HSA education is crucial, especially in these areas:
Consider HSAs as part of a larger, comprehensive benefits strategy and bundle your benefits offering.
In Lively’s survey of HR leaders, we found that 80% of HR leaders feel that offering competitive financial benefits is more important for attracting and retaining employees than it was a year ago. In addition 62% reported that employees' financial stress has risen in the past year.
Paired with a high deductible health plan (HDHP) HSAs can drive healthcare savings for both employees and employers. However, HSAs are also compatible with a variety of other savings and spending accounts that employers should consider offering, including:
Start planning next year’s program now.
In May of 2023 the IRS announced higher HSA contribution limits in 2024 for both individuals and families. In 2024, individuals can contribute $4,150, a 7.8% increase over the $3,850 limit in 2023. Families can contribute $8,300 for families, a 7.1% increase from the $7,750 limit in 2023.
With such substantial increases, employers can begin to plan their matching contributions, which can incentivize employees to participate in an HSA, and drive payroll tax savings. Planning the benefits you will offer early and how you will support employees' financial health and wellness will ensure you remain competitive and get the most for your budget now.