Whether it’s work, social engagements or even personal matters, it can be easy to get bogged down by the details. As author and motivational speaker Jack Canfield puts it, “It’s surprising how many people get bogged down in analyzing, planning and organizing when what they really need to do is take action.” Implementing a High Deductible Health Plan (HDHP) with an HSA is no exception. If you find yourself waiting for the perfect plan to implement or even increase HSA adoption, you will sadly find yourself waiting. Take the leap with these 5 Ways to Avoid Getting Bogged Down by HSA Implementation.
“It’s surprising how many people get bogged down in analyzing, planning and organizing when what they really need to do is take action.” — Jack Canfield
1) Keep it simple: Two basic parts
Part One: The high deductible health plan (HDHP)
Part Two: The HSA
The HDHP is there to pay large or unexpected medical expenses. The HSA is used to pay small and expected medical expenses. When communicating the tax-advantages of an HSA, HR Benefits Alert suggests promoting the HSA as a 25-35% off coupon for eligible medical expenses.
2) Widen the savings gap
For many employees, adopting an HSA often boils down to the financial impact. Employees take notice (and action) when the HSA savings outweigh the additional risk of the higher deductible. If the difference between your plan premiums is minimal, participation growth in your HSA plan will suffer.
3) Share stories
In addition to financial impact, employees often make decisions based on personal connection. When employees relate to a situation, they will be more likely to adopt the HSA. Simply having coworkers sharing stories and providing examples can go a long way in building employees’ trust and confidence in an HSA.
4) Reduce complications
Even the most well-intentioned employers can get bogged down by HSA implementation. The following HSA implementation best practices can be the difference between a successful HSA rollout and one filled with stumbling blocks.
- Align Plan Years: Implementation is always smoother when the plan years for the medical plan and pre-tax benefit accounts align. Since HSAs are reported on an individual’s taxes, a calendar plan year provides some additional advantages as well.
- Add a Limited FSA with Rollover: By adding a Limited FSA with rollover, participants can seamlessly transition from another plan to the HSA-qualified plan without risking ineligibility.
- Make sure your plan documents are in order: Your plan documents are your list of rules and references. Make sure they reflect how you want your plan to work.
For a successful HSA implementation, approach it as a repetitive strategy that doesn’t have a beginning or ending. Start communication early and don’t stop. Find out what is working (and what’s not). Then, make adjustments and try again. Some employees will jump in immediately. Some might require a little time to adjust. There might even be a few that need some one-on-one coaching. But if you stick with it, it will be a winning strategy for both employers and employees.
You can do this. Don’t get bogged down by HSA implementation. If all else fails, remember these 3 things don’t happen when you enroll in an HSA. Stop waiting and take action!