As an employer, you look for the best possible healthcare benefits for your employees; benefits that also fit your budget. The tasks required to evaluate and select these options can take many valuable hours of your time. Understanding different health plan types can be a good place to start when evaluating pros and cons.
Helping your employees get started on the right foot with their HSA can make a big difference in the success of your benefits strategy. The following tips can help employees get the most out of their HSA plan:
To those who don’t quite understand how HSA-qualified plans work, a high deductible seems daunting. Many may say that they can’t afford the high-deductible and so they select a traditional plan and pay the significantly higher premiums typically associated with it.
Because HSA-qualified health plans have higher deductibles, the burden of upfront medical costs is more immediately apparent to those who have this type of coverage. The plans usually have smaller monthly premiums, but the trade-off is more out-of-pocket expenses before insurance kicks in. While at first, this may be perceived as a negative, knowing you’re on the hook for more of your medical bills may actually push you to find smarter ways to put your HSA dollars to work and save.
No one wants to leave free money on the table. That’s why incentivizing employees with an HSA match can be an effective strategy to increase use and satisfaction of an HSA-qualified health plan. To best maximize the value of your matching program, keep the following ideas in mind:
As HSA-qualified health plans increase in popularity and availability, employees who select them are frequently faced with decisions about how to manage their new HSA. First, employees have to understand some of the basics; account balances carry over every year, funds can be used for a spouse or tax dependent, the fact that there are annual contribution limits, etc. These details inevitably lead employees to ask the critical question, “how much should I contribute to my HSA?