HSAs (Health Savings Accounts)

If you’re offering an HSA-qualified health plan, otherwise known as a high deductible health plan, or HDHP, offering an HSA is a great way to help employees improve their financial wellness today, tomorrow and into the future. HSAs allow employees to set aside tax-free money to pay for health, dental and vision expenses not paid by insurance. Employees win by saving money on healthcare expenses. Your business wins with a happier, healthier and more engaged employee population.

There are several reasons to consider offering sponsored plans over non-sponsored plans:

Participation. Choosing a single HSA administrator removes barriers to enrollment by:

• Identifying available administrators
• Completing the vetting process
• Providing enrollment support

Experience. If employees’ HSAs are part of their employee benefits package, then their experience impacts their overall satisfaction with their employer’s benefit offering. It is in the best interest of employers to select a strong partner offering the features, education, service and support they need to get the most from their accounts. Choosing a single administrator benefits the employer too. When the employer has a relationship with a single administrator, there is one place to call when help is needed.

Insights. The right administrator will be able to provide the analytics employers need to assist with their strategic planning.

Generally, yes. Many employers choose to do this to allow their employees to benefit from the advantages of both accounts – building savings in the HSA while receiving protection from large claims with the HRA. However, it is very important to structure the plans correctly to make sure that your employees will remain eligible to contribute to their HSAs. Discuss your desired plan designs with your Associated Benefits Connection sales team member and/or benefits and tax advisors to make sure that your plans will be compliant.

The answer is… it depends. A standard healthcare FSA that pays for health expenses like doctors visits, hospitals, and prescriptions provides coverage under the required deductible for an HSA-compatible plan, so you cannot offer a standard FSA with an HSA. However, a limited purpose plan that pays only dental and vision expenses until the minimum deductible has been met is a perfect pair to an HSA, allowing employees to maximize their tax savings. You will want to help your employees understand how the two plans work together. Your Associated Benefits Connection team and/or benefits advisor may be able to help with employee education needs.

You will need to check with your HSA provider to confirm whether the accounts are FDIC insured. For Associated Benefits Connection employers, money your employees hold in their deposit/cash account is FDIC insured up to the Standard Maximum Deposit Insurance Amount (SMDIA). Any amount they choose to invest is not FDIC insured and is subject to market risk.

Visit our HSA FAQs for even more commonly asked HSA questions.