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This blog is the third of a four-part series that provides strategic insights you can use to maximize the value of your HSA program. At HealthEquity, we think beyond employee education, focusing more on year-round engagement that can boost account utilization, promote better habits and increase member satisfaction. Let's dive in.
Too many benefits teams focus exclusively on engagement without taking the time to measure and quantify their efforts. Without the ability to gather and benchmark data, they can't build on their successes and rectify their failures.
The best benefits teams know that robust metrics and analytics tools are key to developing a high-performing program. By taking the time to understand how employees are using their HSAs, organizations can evaluate their approach and identify opportunities for improvement. After all, you don't know how to improve if you don't know what you're lacking.
The exact metrics a benefits team should track will vary from organization to organization, but these are among the most crucial:
- Employee account contributions and distributions. The 2021 HSA contribution maximum is $3,600 for individual plans and $7,200 for family plans. Validate that your people are making progress on the journey toward long term health and wealth.
- Employee retirement readiness. EBRI projections suggest couples need $300,000+ in savings to cover medical costs in retirement. Make sure your team can observe and benchmark account balances. When contributions exceed distributions, employees can build long-term health savings.
- Employee safety nets. According to our most recent survey, nearly 60% of Americans say they wouldn't be able to cover a $1,000 emergency from their savings without turning to other sources. It's critical to make sure your people build that initial HSA safety net. Without that foundation, your people risk potentially dipping into retirement accounts (and paying an early distribution penalty) to cover medical bills. The reality is the health savings leads to wealth savings.
- Account engagement. Verify that your people are regularly logging into their HSA and optimizing their account. Health savings is a habit. So, the more employees log in, the more they're likely to invest and use their HSA to its full potential.
conclusion
Tracking these metrics can be difficult. If you don't already have a standard of evaluation for your HSA program, you should examine your team's capacity to measure and track data without violating HIPAA privacy regulations. Keep in mind that if you wish to compare your organization's performance to others in your region or industry, you'll also need access to wider data sets.
Check out our Health Savings Score. It's a comprehensive HSA analytics tool that gives organizations unprecedented insight into HSA program performance. You can track and measure progress, benchmark against industry peers and identify opportunities for improvement.
The Health Savings Score is all part of Engage360, our proven approach to member engagement. Engage360 includes original collateral, analytics tools, professional training and the support you need to make a difference for your people and your organization.
Investments are subject to risk, including the possible loss of the principal invested, and are not FDIC or NCUA insured, or guaranteed by HealthEquity, Inc. Investing through the HealthEquity investment platform is subject to the terms and conditions of the Health Savings Account Custodial Agreement and any applicable investment supplement. Investing may not be suitable for everyone and before making any investments, review the fund's prospectus.
HealthEquity does not provide legal, tax or financial advice. Always consult a professional when making life-changing decisions.
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