The Case for an HSA-Based Approach
As the costs of offering health insurance continues to rise, many employers are looking for viable insurance options that reduce costs without sacrificing critical medical benefits. For many employers, this has led to the adoption of an HSA-Based Health Plan. By embracing these consumer driven plans, employers have reintroduced choice and flexibility back into the broader health care discussion and empowered their employees to compare costs and demand better value. Combined, these efforts have helped alleviate employers from the rising costs associated with employer-sponsored benefits and incentivized employees to take a more active role in their health care decision making.
Why Make the Transition to an HSA-Based Health Plan?
HSA-based health plans offer many benefits to both employers and their valued employees. In addition to lowering costs, adoption of an HSA-driven approach has proven to increase consumer awareness and engagement when it comes to health care consumption. No wonder, each year more employers recognize the value of an HSA-based strategy and its ability to keep benefit costs down while providing quality health care for employees.
How Employers Win
- HSA Based Coverage is More Affordable
- Employer HSA Contributions are Tax Deductible
- Reduced Benefit Administration
- Increases Participation in Group Sponsored Wellness Programs
- Promotes Sensitivity to Cost Before Receiving Care
Provides Employees A Vehicle For Long-Term Medical Savings
How Employees Win
- Lower Monthly Premiums
- Pay for Eligible Medical Expenses Tax-Free
- Provides Options To Save For Future Medical Expenses
Personal Ownership – You Decide How to Spend Your Money
Greater Flexibility – You Decide When to Spend Your Money
No “Use it or Lose it” Policy – HSA Funds Roll Over Year After Year
How to Successfully Transition to HSA Health Insurance
In switching to us, we’ll work in conjunction with your appointed broker to implement a seamless conversion. The following outlines how we can work together to help your employees confidently transition into their new health plan and boost employee embracement of our unique HSA approach.Be Transparent:
Informing impacted employees prior to a new benefit change is critical and will lead to greater acceptance and initial buy-in. In being proactive, you will allow your employees the time they need to adequately process their new benefits while providing you with an opportunity to preemptively address any immediate questions or concerns they might have. Educate, Educate, Educate:
Making the switch to an HSA-based health plan is rewarding, but it can cause panic as employees adjust to and learn about new plan designs and health savings accounts. Therefore, it is imperative that you and your agent develop an educational campaign before, during and after enrollment that focuses on how the new plan works, the value of an HSA and the unique tax-advantages gained because of the health plan change. Highlight the Savings:
Nationally, enrollment in a HSA-based health plan equates to an 11.92% decrease in monthly premium. This significant savings needs to be highlighted and depicted in ways that encourage employees to utilize a portion of the savings, pre-tax, to plan for future medical expenses and fund their HSA. Meaningful Open Enrollment Meetings:
Active learning within a safe environment is critical and does have a direct impact on information retention. Therefore, it is important to provide your employees with the time to personally invest in the learning of their new health plan and raise questions about its potential impact on their current or future medical needs. Thus, holding an active enrollment meeting, whereby your agent and HSA Health Plan are present, ensures immediate needs are addressed and any confusion is dispelled. HSA Employer Contribution:
One of the surest ways to ease the stress associated with switching to an HSA-based health plan is to contribute to your employee’s HSAs. A meaningful employer contribution reinforces the win-win mentality and highlights how premium savings can and will be used to reduce the threat of increased cost-sharing typically assumed when transitioning from a traditional to an HSA-based health plan.