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  • Writer's picturePhil Daigle

How to Start a Health Savings Account

How are HAS’s Established? Establishing HSAs for employees can be done through different approaches, depending on the employer's preference and the level of involvement they want in the process. Here are two common methods for establishing HSAs:

  1. Integrated Approach: Many employers choose to integrate HSAs with their medical plans, making it a seamless process for employees. In this approach, the employer partners with a health insurance carrier and a benefits broker to handle the details of setting up and administering the HSAs. The carrier and broker will provide the necessary guidance, tools, and resources to facilitate the establishment of HSAs for eligible employees. This integrated approach simplifies the process for both employers and employees, as all aspects of the HSA setup and administration are managed by trusted partners.

  2. Employee-Initiated Approach: Another option, although less common, is for employers to allow employees to establish their own HSAs through their preferred bank or financial institution. In this approach, employers provide information and resources to educate employees about HSAs and the steps to set them up. Employees would be responsible for selecting a bank or financial institution, opening their own HSA account, and managing the contributions and expenses associated with it. While this approach gives employees more control and flexibility, it can also introduce additional administrative complexities for employers, as they need to provide support and guidance to employees who choose this option.

The choice between these approaches depends on several factors, including the employer's resources, the level of involvement desired, and the strategic goals of the benefits plan. The integrated approach is typically more popular because it streamlines the process and provides a consistent experience for employees. By partnering with a carrier and benefits broker, employers can ensure a smooth HSA setup and administration process, allowing employees to focus on utilizing their HSAs for their healthcare needs. It's important for employers to consider the preferences and needs of their workforce when establishing HSAs. Making the HSA setup as frictionless as possible can help drive employee adoption of high-deductible health plans (HDHPs) and maximize the benefits of offering HSAs as part of the overall benefits package.

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