Question: We added a high deductible health plan option with an HSA a few years ago, but uptake has been slower than expected. Besides promoting it during open enrollment season, is there anything else we can do to better position this benefit with our employees?
Answer: The Plan Sponsor Council of America publishes an annual benchmarking survey of HSAs that offers a great deal of insight into employee engagement. One trend reported in their 2023 HSA Survey shows that more than one-third of plan sponsors surveyed are positioning the HSA as part of a comprehensive retirement savings strategy to employees — up from 27.2% in 2022. In addition, almost half of employers automatically enroll
employees in the HSA if they enroll in the HSA-qualifying health plan option. Continually educating employees about the triple tax-free nature of HSAs as well as the availability of an employer match (if offered) should continue to be a key part of your employee communication strategy. Three- quarters of employers make contributions to an HSA (most provide a set amount per coverage level). The Profit Sharing Council of America’s 2023 HSA Survey can be viewed by clicking here.
