When looking for new revenue streams and ways to reach new customers and retain existing ones, offering a health savings account (HSA) can be a crucial piece of your clients’ business strategy puzzle. HSAs are quickly becoming the most popular way U.S. employees and employers alike can save on health insurance costs while simultaneously improving workers’ financial health.

With HSA assets reaching nearly $147 billion across more than 39 million accounts in 2024‡, now is the time to avoid any future HSA headaches and help your clients choose the right provider by keeping the below key topics in mind.

Know the value of HSAs

First, it’s important to understand HSAs and how they can transform employees’ financial security and allow employers to retain their current workforce and be more desirable for top talent. According to the Consumer Financial Protection Bureau‡, just over 80% of employees with an HSA contribute to it with the triple tax advantage, investment opportunities and cost management being huge benefits for them. With five generations in the workforce currently, HSAs allow employees to deal with their concerns over the rising cost of health care now and in the future.

Once employees reach age 65, they can use their HSA money for any reason as long as they pay taxes on withdrawals used for non-medical expenses. This gives employees the ability to use their HSA similarly to traditional retirement plans like 401(k)s and IRAs and boost their portfolio. And, employers are becoming more invested in their employees’ financial wellness with 76% of employers providing a contribution match to some degree‡, which reduces employees’ stress around finances and allows for improved productivity and reduced turnover.

Keep in mind key considerations for selecting the right HSA provider

HSA providers may also be referred to as HSA custodians or administrators, but no matter what they go by, each must be an IRS-approved financial institution that administers the HSA for your clients.

As you explore which HSA provider might be the best fit, consider factors like backend processes, fees, investment options and customer service. A great HSA provider doesn’t just offer an account; it integrates seamlessly into your clients’ benefits and payroll ecosystem. The overall employee experience matters; they need an HSA provider that offers stability, ease of use and strong customer support. Employee adoption and engagement is huge, so make sure your provider offers decision-support tools, welcome kits and educational materials.

Additionally, one of the most overlooked factors when choosing an HSA provider is the fee structure. While HSAs are designed to help accountholders save for medical expenses, high or hidden fees can erode those savings over time. That’s why it’s critical to evaluate a provider’s pricing model upfront, looking for one who prioritizes transparency — unexpected maintenance, transaction or investment costs can add up quickly. Remember HSAs aren’t just for saving and spending—they’re also an investment tool. The right provider should offer opportunities to grow savings over time and truly maximize account funds.

Ways an HSA provider can help drive successes for your clients

Be sure to explore practical ways in which the right HSA provider can help drive success for your clients. By choosing a capable HSA provider, you can enhance employee engagement and optimize healthcare savings, ultimately driving overall client satisfaction and success. As you start your HSA provider quest, here’s what we recommend looking for and avoiding:

LOOK FOR a provider who:

  • Enhances employee engagement through education and support resources
  • Offers user-friendly platforms
  • Provides personalized support and customizable plans
  • Optimizes healthcare savings
  • Uses data-driven insights
  • Has robust compliance and security measures

AVOID a provider who:

  • Fails to prioritize technology and integration
  • Overlooks compliance and regulatory support
  • Lacks user experience insights and educational resources
  • Neglects customer service

Not all HSA providers are the same, so be sure to take the time to research and review your options to ensure you’re properly advising your clients and positively impacting their employers and employees.

Learn more about UMB Healthcare Services, which has one of the best HSAs for 2024 among all HSA providers. (Source: Investor Business Daily’s Best HSA Companies 2024 List‡)

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