More people today have health savings accounts (HSAs) than ever before. Recent studies show over 35.5 million Americans have an HSA, covering nearly 72 million people.
HSAs offer many tax advantages and allow people to save for future healthcare costs. Research suggests that HSA account holders are more strategic healthcare consumers and engage in greater healthcare decision-making than those who don't have one.
If you're an employer offering HSA contributions, encouraging your employees to participate can benefit their short and long-term well-being. Here's how you can improve employee HSA participation.
Education
Many argue that the reason there aren't more people who have HSAs is a lack of education. Not everyone understands the benefits of having an HSA or how it can lead to better financial and medical security in the future. One way to get more people on board is to educate them on what an HSA can do.
Communicate the benefits of these accounts and remind employees of their value. Don't limit that education to enrollment periods. Push the benefits year-round and provide ongoing resources for your team. Whether through educational pamphlets, engaging videos or in-person meetings, teaching your staff about HSAs will make them more likely to participate and contribute independently.
Offer Contribution Incentives
Here's a two-for-one strategy that can both educate and incentivize. Employers who have successful employee HSA participation play an active role in encouraging their teams to take full advantage of what these accounts offer.
For example, some companies do front-end contributions. Instead of smaller, incremental contributions throughout the year, they fund the account upfront. That could be with a single contribution during enrollment or quarterly. Either way, that front-end funding makes HSA funds accessible from the jump, making employees more likely to utilize the account for their healthcare needs.
Another option is to provide additional contributions whenever an employee takes certain actions. For instance, you can use contributions as incentives to complete wellness initiatives or do annual physicals. This tactic informs employees while giving them more reason to participate in your HSA program.
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