The final school bell rings, setting off a sound that serves as music to the ears of students and teachers alike, officially signaling the start of summer break. Mad dashes are made through the halls and out the doors toward what awaits ahead: splashing at the pool, relaxing on the beach, barbecue parties, fireworks filling the sky, and various other outdoor adventures that translate into extra time spent with family and friends.
While the summer season traditionally beckons a time to unwind the brain, relax all thoughts, and dull the senses, today’s blog speaks to an important need for employers, benefits administrators, and employees to sharpen their pencils…in order to sharpen their health savings account (HSA) skills.
So don’t unpack those schoolbags yet. Class is still in session.
HSA 101: Yes, More Pencils. Yes, More Books. (But We Can Spare the Teacher’s Dirty Looks.)
I know, I know…Alice Cooper’s chart-topping transitional anthem tells us “school’s out for summer” (or “forever” if that’s the lyric you choose to cling to); but according to new research, some all-around schooling is needed when it comes to benefits administrators providing HSA education, and employees understanding the offering’s tax-advantaged perks.
According to Plan Sponsor Council of America’s inaugural survey on HSA plan design and use, 60 percent of plan sponsors reported that employee HSA education is a “dominant concern”—yet only one out of five sponsors offer educational outreach multiple times a year. Conversely, 76 percent said they offer HSA education just during open enrollment. As for the education mediums, 56 percent of surveyed employers rely on “how-to” guides, and nearly 60 percent use group presentations.
If we break this down by tenure, 38 percent of surveyed organizations have offered an HSA to employees for 2 to 5 years, and only 34 percent have done so for 6 to 10 years.
Perhaps the most telling statistic: just 25 percent of employers reach out to employees who don’t contribute to the HSA, or only contribute a nominal amount, with additional education.
But not to worry: if you feel like you need to beef up your HSA communications, we’re offering extra credit. Check out our resources below to help employees go from missing the mark to making the grade.