4 HSA Facts Employees Need to Know to Drive Enrollment

By Itamar Romanini | Originally posted on HR Daily Advisor

Open enrollment is crunch time for HR teams, but in all the busyness of these coming weeks, don’t miss the opportunity to empower employees to take control of their health and their finances by educating them on how to use their health savings account (HSA). 

HSAs are a powerful benefit, yet many employees miss out on saving hundreds or even thousands of dollars each year when they fail to enroll in this benefit. The reasons are familiar: HSAs can feel confusing, employees may not know how to use them, or they may believe they cannot afford to contribute. HR and benefits leaders can change these perceptions by turning open enrollment into a true opportunity for engagement. 

The Case for Employer-Led Education 

While HSAs have been around for more than 20 years, many HSA users say they are confused about how to use their account, and others feel they can’t afford to fund their account. However, nearly 30% of account holders say they would contribute more if they understood what is covered and how the HSA can support their healthcare spending. On the flip side, when individuals understand the basics of eligibility and see how routine purchases can fit into their account, they are far more likely to fund, use, and keep their HSAs active. According to industry research, education can increase HSA contributions by 30%, improve account retention, and drive higher employee satisfaction, overall. 

Whether employees are just starting out and not fully funding their accounts, if they’re regularly using their funds to pay for healthcare products and services, or if they’re saving for retirement.