Daniel Stewart

Tips to Simplify Management of Employee HSAs

A health savings account (HSA) can be a very powerful financial vehicle to save tax-free cash for medical expenses. With healthcare costs on the rise across the country, many people are seeking ways to save on expenses. An HSA offers the ability to set aside money for healthcare expenses that insurance doesn't cover, and these accounts are great for people who have high-deductible insurance plans.

Employers often offer HSA benefits to employees as a part of a workplace's benefits package. Managing your employees' HSA benefits can seem complicated, but by following a few simple tips, you can make life easier.

Use Technology Tools

The use of an HSA benefits administration platform can simplify many of the processes involved in HSA benefits management. An HSA benefits administration platform typically includes both a human resources portal and an employee user interface to allow for easy communication and quick access to benefits information. This provides your company with the ability to track benefits usage while also supplying employees with updated information about what benefits they have left to use for the period.

Consider Contract Length

Whenever your company is thinking about entering into a contract with a new benefits partner, consider the contract length. If you only sign a short-term agreement, this can put your employees in a tough spot since they may come to depend on certain benefits that won't last. On the other hand, if you sign a long-term contract, you're locking your company and employees into an agreement that may not fit everyone's needs in the future. To remedy this, see if you can enter into a flexible partnership that can be amended in the future if new benefits become available or if your company's needs change.

Hire a Benefits Coordinator

When a company is small and is just beginning to offer benefits like HSAs, it's usually fairly easy to manage everything. As a company grows, however, the management of benefits often becomes more complicated. Hiring a dedicated benefits coordinator could be the solution to common problems that present themselves when benefits administration becomes complex.

Author Resource:-

Daniel Stewart has been helping people with their money management and personal finance with over 15 years' experience in business finance. You can find his thoughts at HSA investment advice blog.