Perhaps the best way for an employer to provide a better Health Savings Account (HSA) is to hear the truth...
InComm Benefits
Helping employers modernize benefits | HSA & FSA Expert | Employee Benefits Products
And that truth is: Four myths about HSAs are preventing employees from getting the most value out of their account. It’s time to debunk those myths and help your HSA live up to its great potential.
Myth 1:
“Our HSA Solution is Fine Because Employees Aren’t Complaining.”
Many employers assume that their employees are happy with their HSA since they’re not voicing any dissatisfaction. The reality is that many employees are simply unaware of how much they could be saving on health expenses and how to better optimize their HSAs. According to the Employee Benefit Research Institute (EBRI) study, only 37% of employees with access to an HSA contributed the maximum amount allowed.
Myth 2:
“It’s Not Worth the Effort to Change HSA Providers.”
This misconception can prevent HR professionals from exploring new – and potentially more valuable – HSA options. While staying with the same provider can be attractive because of the time and effort needed to switch, there are a wealth of potential benefits that can outweigh these temporary inconveniences.
Myth 3:
“Employees Using Their HSA Does Not Affect the Company.”
Higher contributions directly impact employees’ financial wellness through greater tax savings and more resources available for healthcare expenses. As a result, encouragement from the employer’s HR can lead to overall improvement of financial wellness for employees and higher job satisfaction.
Myth 4:
“HSAs Are for ‘Savers’ and Not ‘Spenders’.”
The truth is ‘’spenders make up the vast majority of HSA users. Employees using HSAs need to be better educated so they understand that by not contributing more to their HSA, they leave money on the table – and miss out on savings for everyday expenses.
By challenging these myths, your company can take the steps necessary to strengthen your employee HSA offerings. Here’s how:
+ Improve employee education about their benefits
+ Weigh the alternatives of supplying more e ective providers
+ Encourage broader employee participation
Taking action can lead to better results for both employer and employee. Employees will gain greater financial security and tax savings, while employers will benefit from increased satisfaction, retention, and potential FICA tax savings.
Visit our Website To learn More