The pandemic has further aggravated existing problems with HSAs, namely a lack of awareness about their advantages, as well as a general misunderstanding of how they work. This is an opportunity for advisors to add value beyond retirement planning by offering holistic financial wellness education that boosts HSA enrollment and participation.

Benefits of HSA participation

Employers can save money on health insurance premiums by offering HSA-qualified, high-deductible health plans. They also benefit in several key ways when employees use HSAs to their full potential:

They will have employees who are reaping tax benefits, increasing retirement savings and getting health care when they need it, rather than putting it off because of cost concerns.
As a result, they will have a less financially stressed workforce, which is proven to increase productivity, decrease absenteeism and reduce turnover.

A recent survey by Plan Sponsor Council of America found half of employers offer HSAs in their benefits package, but 69% of employees are not clear on the benefits or uses, meaning they're missing tax advantages and opportunities to increase savings.

Instant Insights /

Employee HSA confusion is an opportunity for advisors

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