Plan sponsors started to introduce HSAs in 2005, and most providers and sponsors initially explained HSAs as an FSA look-a-like or as a kind of “super” FSA, and not as a long-term savings account. (Photo: Shutterstock)
Health Savings Accounts (HSAs) offer employers and their employees access to a great savings vehicle. However, we find that they continue to be widely misunderstood.
The Plan Sponsor Council of America's HSA committee offers these solutions to common HSA pain points. Here are eight pain points and how to approach them, to use now or at your next open enrollment:
Headache #1: HSA and FSA confusion
An HSA is not the same as a Flexible Spending Account (FSA). The FSA basics have mostly been unchanged since 1984, when the cafeteria plan regulations were first proposed – annual elections, use-or-lose, etc.
So, not surprisingly, after more than 20 years of education, workers are well trained to understand an FSA.
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