The three characteristics of a powerful HSA offering provide employees with the financial savings security blanket and short-term tax savings while also helping make healthcare costs more affordable.
Leverages technology – Most HSAs are simply an online deposit account designed for debit transactions. However, and HSA with robust technological capabilities, such as artificial intelligence, is able to understand and anticipate an employee’s unique spending habits and situations and then make actionable recommendations to educate them on how to maximize their HSA funds. Artificial intelligence can satisfy the need for ongoing education for the majority of employees that don’t understand how to maximize their tax savings through the HSA.
Simplifies administration and HSA enrollment – Too often, employers don’t receive adequate support from HSA providers in administering the accounts to their employees. An HSA provider that automates payroll management and simplifies both the administration and implementation of the accounts, as well as the enrollment of employees, will make for a more satisfying experience and preparation for the inevitable increases in out-of-pocket healthcare costs as retirement approaches.
Doesn’t let accountholders get complacent – The reactive nature of HSAs only hurts employees in the long run by allowing them to get complacent in how they either contribute to their HSA or let it sit inactive. Proactive HSAs that actively engage account holders with timely nudges, such as reminders to contribute, as well as document eligible expenses for future reimbursement, will help ensure each account holder is on a journey to optimizing their contributions and maximizing their savings. Currently available technology not only enhances savings opportunities, but also maximizes the capturing of eligible expenses and will ensure the accountholder takes full advantage of the triple tax savings that only an HSA can provide! This same technology also automates payroll management and administration of HSA related tasks.
Even for active HSAs, there’s much room for growth. In 2017, one-third of active HSAs received no contributions and only 15 percent of employees maxed out their HSA contributions. With timely nudges or messages, employers can encourage consistent and optimal financial savings from their employees.