- For Employees
- For Partners
When it comes to HSAs and the vendors that provide them, not all HSA providers are created equal.
It’s an important distinction both for individuals seeking out the best HSA provider, as well as for employers either setting up their first HSA program or looking at retooling their existing employer-sponsored HSA program and potentially switching HSA vendors.
Employers have critical considerations to weigh when choosing an HSA partner. Like how dedicated is their current or prospective HSA provider to health savings accounts? Do they have a true focus on and expertise in all things HSAs? Or do they simply offer HSAs as a transactional measure tacked on and tucked away behind their suite of other more established offerings?
With the continued surge in popularity and use of high-deductible health plans (HDHPs) paired with health savings accounts, employers of all sizes and scopes can benefit from having a dedicated HSA provider.
When it comes to HSA vendors, there are many choices. But each choice nets a much different approach to HSAs, along with vastly different experiences on both the employer and employee end.
Some HSA vendors are widely known names—companies that have been in business for years and years. Unfortunately, many of these HSA vendors don’t take an HSA-first approach to their products and services. Health savings accounts have been added to their cache of offerings mostly as a reactionary measure to check a box—not to provide the best HSA experience and make HSAs easy for everyone. More often than not, employers who choose these vendors, perhaps simply because they use them for other benefit offerings, end up with a clunky user experience, cumbersome program administration, limited platform capabilities and ultimately, less-than-stellar results for both the employer and their employees.
Other HSA providers, like Bend, are newer to the market. Although they may have less name recognition, an HSA vendor like Bend is a true health savings account expert, offers an HSA-centric approach and strives to be a true HSA partner to every employer and accountholder they work with.
Employers are well served to find an HSA provider that puts HSAs first and has developed a platform proven to produce win-win benefits for employers and employees, as well as eliminate headaches and frustrations commonly caused by ineffective and inefficient HSA program design and execution.
When an employer partners with an HSA vendor that makes HSAs easy for everyone and proactively guides employers and employees to become better health savers and spenders, everyone wins.
This is especially true when it comes to the FICA tax savings an employer stands to benefit from based on having a well-structured HSA program with active employee participation. Simply put, the more employee HSA contributions, the more employer FICA savings.
And on the employee end, having a proactive, easy-to-use platform that provides personalized, real-time guidance and education as they venture through their HSA journey nets employees more savings, long-term investment potential and opportunities to achieve better overall financial wellness.
Along with an HSA-first approach, employers need to find an HSA provider that addresses the core issues that most often cause confusion and misconceptions—and ultimately create barriers in terms of HSA program participation and effectiveness.
In a recent survey, educating employees on health benefits, including HSAs, was the biggest challenge for nearly half of American employers.
The reality is, even though HDHP/HSA combinations have grown and continue to grow substantially in popularity and use, 65% of people still don’t know that HSAs and FSAs are different things.
This common misconception alone can be a major roadblock for employers wanting to promote an HSA program. If employees (and sometimes even employers) don’t even understand that an HSA isn’t the same as an FSA, that can be devastating to an employer’s attempts at education efforts and employee buy-in.
Employers and employees both need to know that unlike an FSA, there’s never a use-it-or-lose-it scenario with an HSA. In fact, one of an HSA’s greatest benefits is that it’s extremely flexible and rolls over indefinitely without penalty.
An HSA-centric provider, like Bend, also offers comprehensive communication tools and educational resources for employers and employees to proactively combat common HSA misconceptions. This can be especially helpful for employers new to offering an HSA program that may not be fully versed in all things health savings accounts. Thoughtful HSA program design and helpful automations can also take the guesswork and headaches out of the equation for both employers and employees.
Consider these top three common HSA misconceptions on the employer side:
Regardless of if an employer has a well-established HSA program or is completely new to the thought of even starting one, an HSA provider’s numbers should be able to paint a clear picture of the results they can help employers and employees achieve.
Case in point—check out how Bend HSA stacks up against national averages:
Bend HSA average account balance is 40% higher than the national average
Bend HSA has 25% more accountholders as investors than the national average
Bend HSA accountholder contributions are 60% higher than the national average
When employers choose to partner with Bend to create a well-planned HSA program, they complete the HDHP/HSA puzzle, bridge HSA education gaps and provide their employees with an easy-to-use, extremely valuable benefit to save money in taxes, better control their short and long-term healthcare costs and invest in their future. They save themselves and their employees both time and headaches, and also stand to achieve optimal employee engagement and make maximum FICA savings a reality.
When it comes to employer HSA program success, having a dedicated HSA provider truly does matter.