Are you getting ready to introduce a High Deductible Health Plan/Health Savings Account to your employees this year and wondering the best way to introduce the plan to your people? Fifty percent of employees don’t understand their benefits. Another challenge is that employees don’t open or read their communications material. Read on for some tips on how to talk to your employees about an HDHP/HSA:
Make the Most of Your Open Enrollment Period
Open enrollment is the time when health insurance starts to come to the forefront. It’s your opportunity to introduce the new HDHP/HSA option to your people and educate them about the benefits.
A few tips to keep in mind:
- Keep It Simple Since a lot of benefits information can be confusing, keep the information as simple to understand. Sometimes employees hear terms like “high deductible” assume the worst. Explain in simple terms how HDHPs work with HSAs. Try to define any terms or acronyms that may cause confusion.
- Look At The Benefits from Their Perspective Your employees are at different stages and situations in life. What benefits will this plan provide them? Offer different scenarios and real-world examples to help them see the potential of the new plan.
- Communication is Key Educating your people about the value of an HDHP/HSA is a continuous process. Once you’ve provided them with the initial information and material, be open to questions beyond your open enrollment meeting.
Emphasize Key Points About the HSA
There is a high probability that your employees will not have heard of an HSA before. Introduce the benefits of the account with these key points:
- The Money is Theirs A common misunderstanding is that the HSA is a Flexible Spending Account (FSA) and that they will lose any money at the end of the year. The money goes with an employee to another job and into retirement. It’s important to dispel this myth right away!
- Triple Tax Benefit Any money that an employee contributes goes in tax-free grows tax-free and can be withdrawn tax-free (when used on medical items).
- Ability to Invest the Money The ability to invest and grow money in an HSA account is an underutilized tool. The money can be saved and used to pay for medical expenses at a later date or in retirement. It’s like a medical 401(k) plan.
- Medical Savings Account The money can be used for any qualified medical expense tax-free. Which includes deductibles, co-pays, and prescription drug costs.
The HDHP/HSA can prove to be an invaluable option for your employees and with the right education about the benefits, you can help them learn if this is the right step for them.