What makes a great HSA program for the masses? Is there one HSA Administrator that can satisfy everyone? Employers across the country are in search of that “perfectly balanced” employee benefits program that will satisfy the needs of their workforce. In employee benefits, companies often struggle to find the winning balance between adequate options, ease of use and affordability.
With the explosion of High Deductible Health Plans (HDHP), the right HSA administrator can make or break your employees’ satisfaction with their health plan. Employers are now searching for the right HSA partner. Regardless of company size, employers have 3 types of HSA account owners making up their workforce; spenders, savers, and investors. When evaluating HSA programs, employers need to keep all three in mind. The HSA tool should be one that meets everyone’s needs, yet is still be affordable and easy to administer for the company.
So, let’s look at how each type will typically use their HSA.
Most HSA account holders anticipate using the account for current expenses and need to take advantage of the tax savings now. The health savings account is the conduit to allow tax-free money to go into the account and provide an easy and simple way to pay for health-related expenses for the employee and their families. The balances in these accounts fluctuate greatly throughout the month, based on the timing of the deposits. Having minimum balance requirements or transaction fees on these accounts is not a great feature due to the volatility of the account.
Savers are those account owners who see the value in saving for the future, but they may need to tap into the account periodically to cover qualified medical expenses. They want the best of both worlds – easy and quick access to funds along with the advantage of investing some portion of their balance.
A small portion of HSA owners are Investors. These individuals use their HSA as a financial planning tool. They take advantage of the maximum contribution limits each year and don’t use the funds. They want their money to work for them as an investment vehicle. For these folks, having a robust and easy way to access the investment markets is critical. Employers need to make sure the program they offer will meet all three types of health savings account owners.
How does an employer evaluate HSA programs and compare Administrators? Morningstar can help.
Morningstar released their second annual HSA Landscape report. In this report, they focused on what makes the best HSA administrator for all types of account holders. They compared the top 10 HSA providers in the country. Their criteria included maintenance fees, investments fees, interested rates and investment lineups. Their goal was to determine which HSA administrators offered the best HSA checking account for spenders and the best investment program for savers. Morningstar ranked each component as negative, neutral or positive for all ten HSA providers.
After adding up the criteria scores, Morningstar rated The HSA Authority the best overall HSA program because it was friendly to both spenders and investors. They gave The HSA Authority a positive ranking on both checking and investment options. In the Morningstar report, The HSA Authority was the only administrator to receive a positive assessment for both checking and investing. View the Morningstar report HERE.
Here, at The HSA Authority at Old National Bank, exceeding our client’s expectations with a great product at a reasonable price is our mission. We regularly review our product, evaluate client feedback, and keep an eye on the competition to provide the best client experience for all our HSA account holders. Being recognized nationally for our efforts, is a bonus, knowing we have loyal clients who expect the best… that’s the difference at The HSA Authority.
Is your company in need of an HSA administrator?
Find out more about the education-based, service-focused program offered by, The HSA Authority. We work with hundreds of employers and insurance professionals across the United States.
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