hand inserting HSA puzzle piece on green background

Now that open enrollment time is here, many benefits professionals are recommending health savings accounts (HSAs) to their employee base. However, some people are reluctant to embrace HSAs because of the time-consuming paperwork required to enroll and manage them, as well as the complex information they often must digest in order to make the best possible HSA decisions. Fortunately, those issues are rapidly disappearing as new technologies are making HSAs easier, faster and less complicated to open and manage than ever.

New administration platforms involving artificial technology (AI) will eliminate the complex enrollment and paperwork process while giving employees real-time information and guidance on the appropriate steps to take based upon their health care and financial requirements. Along with that, benefits and HR professionals are seeking more opportunities to streamline processes and obtain better service with the help of trained HSA administrators, while quality administrators help employees navigate new regulatory and tax changes that can benefit them.

HSAs have existed since 2004 with little innovation but that has changed. Now, with forward-looking administrators applying artificial intelligence and machine learning to the HSA enrollment process, management and ongoing use, the HSA industry is being disrupted. HR staff should look to adopt technologies that leverage AI, as it can help offload many of the manual and tedious tasks required of their staff as well. This technology also simplifies and streamlines benefits offerings while individualizing and optimizing the benefits for employees. Lastly, utilizing technology will inevitably eliminate the need for cumbersome paperwork, immediately cutting costs for the employer.

Best practices for HSA enrollment

Whether an employer is adding an HSA-compatible health plan option for the first time or wants to grow enrollment, helping employees understand their options and informing them of how the choice may impact them is key. Below are some key best practices:

Ensure the information is delivered where the employees are. Communicate key information via email or in-person via planned education sessions held over lunch or in break rooms. Make sure to get the answers employees need not only to decide to enroll, but to maximize the benefits of HSAs once enrolled.
Partner with the right HSA administrator from the start. Enlightened administrators are embracing technology into their offerings that can inform, educate and guide employees and make the selection of a health plan easier. Such tools allow for the import of various aspects of the employee's situation such as whether they have a family, are single, or are of good health. This technology can then provide information regarding the health plan options. By utilizing decision support tools, employees have been shown to save more than $1,000 per year.
Use chatbots and conversational assistants. With the help of new technologies, benefits professionals can answer employees' routine questions quickly and efficiently during the chaotic enrollment period.

Unlocking HSA value

HR and benefits professionals can help employees get the most out of their HSA investments by accessing the right tools from the HSA administer. This will help HR and Benefits teams more effectively communicate the benefits of the account, including everything from how to enroll, recordkeeping, reimbursement, investing funds and tax implications. The employer should work to ensure the information is delivered where the employees are, including email, break rooms and via education sessions. The key is to make it as easy as possible for employees to get the answers they need not only to decide to enroll, but to maximize the benefits of HSAs once enrolled.

Working with the HSA administrator, employers should incorporate machine learning, artificial intelligence and automation to provide education and guidance to employees and make the program administration easier and less time consuming. These technologies do much of the work and guidance previously performed by HR staffs, freeing them up for more impactful tasks like onboarding, training and talent recruitment.

New tax that could maximize HSA value

While health savings accounts are regulated by the IRS and were created by Congress, the most often-changed regulation is an annual increase in the amount of money account-holders can contribute to their HSAs. Customer-centered HSA administrators inform their clients and their employees of these new limits each year so employees can update their contributions.

There are two major initiatives from the Federal government that may be coming. First, an initiative working its way through Congress would allow seniors to continue funding their HSAs even while on Medicare.

Second, an executive order issued by the president changes the status of some chronic illnesses that soon will be reclassified as preventative care due to the complications that often come as a result of these diseases. They include heart disease, hypertension, congestive heart failure and diabetes. Certain medications and supplies to treat these diseases may soon be covered under an HSA-compatible health plan, up to full coverage.

There is also new legislation winding through U.S. Congress that will allow employees to contribute to both an HSA and a FSA.

HSAs offer many important advantages to both employers and employees, so it behooves Benefits professionals to embrace better ways of communicating their value to the companies they serve. Contributions to HSAs are not subject to federal income tax and earnings in accounts grow tax free while unspent money in HSAs rolls over at the end of the year, making it available for future health expenses–no use it or lose it aspect. These are just a few of the highly desirable benefits the accounts offer.

By offering so many financial benefits to employees, a solid and innovative HSA program can dramatically improve overall employee retention and satisfaction, resulting in a major win/win for all.

Tom Torre is CEO of Bend.

Read more:

Instant Insights /

How health savings accounts will improve, evolve with time

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