There are many problems facing HR professionals and benefits administrators today. If this is your role, we know you have a thousand to-dos. It can be a “one step forward, two steps back” battle. You can feel like you’re trying to climb a mountain. One of the “mountains” you may be facing is combating rising healthcare costs.
The Challenge
Rising healthcare costs are one of the main concerns for Americans. According to research from the Kaiser Family Foundation, price transparency and mental health care access are two of the most pressing concerns for the public and Congress. Current regulations have made strides, but more action is being sought. In fact, an overwhelming 95% of the public believes that making health care costs more transparent to patients should be a priority for Congress. Of that group, 60% consider it a top priority. The Kaiser report notes “Worries about rising prices are widespread among the public and health care costs are no exception. Nine in ten (91%) say they are concerned about increases in health care costs for individuals, including six in ten who say they are very concerned, nearly double the share who say they are very concerned about increases in government insurance programs like Medicare and Medicaid (34%) or about increases in health care costs paid by employers (31%).”
Although rising premium rates are an on-going challenge for employers, a primary (and popular) method to overcome this is to implement a high-deductible health plan (HDHP).
Overcoming the Challenge
Implement an HDHP with Complementary Accounts
A growing number of employers have implemented an HDHP as a choice for employees. As a result, more than 55% of Americans were enrolled in HDHPs in 2021, a new record. Of those, more than seven in ten employers (71 percent) also offer a health savings account with employer funding.
An additional tool can be pairing an HSA-HDHP with a Limited Flexible Spending Account (or Limited FSA).
By offering an HSA with a Limited FSA, you help reduce healthcare costs. Employees can use two tax-advantaged accounts to cover many primary eligible expenses. The HSA can be used for a variety of health expenses, while the Limited FSA provides coverage exclusively for vision and dental expenses. If employees enroll in a Limited FSA they have the option to forgo enrolling in vision or dental insurance, avoiding the need to pay those premiums.
In the end, employees walk away with lower premiums and two pre-tax accounts to keep even more money in their pockets. And you, as the employer, can hire more people while keeping healthcare costs manageable. You also still receive a tax write off. Learn about more options and solutions for your company.
Increasing Adoption and Use
Regardless of which plan(s) you implement, if your employees don’t sign up for them, they can’t do much good. The final step to overcoming the challenge is adoption.
When it comes to HSA adoption, we know it can be hard. Employees tend to enroll in what they’re used to, which is often a higher premium plan with lower deductibles. But HSAs offer a triple tax benefit that many employees can take advantage of. They just might not be aware of it… yet.
Download our HSA Case Study to learn how you can be an HR superhero and save your company from low adoption rates.
Facing Rising Healthcare Costs
The only way to get over the mountain is to take the first step. We’re here to help you find your footing as you go through this journey. Healthcare is a changing landscape, and HR professionals aren’t provided harnesses for safety. But there are other resources available for you to manage the challenge of rising healthcare costs. How can we help you? Reach out to us today to discover your options.
