Hey there! Claire here! 👋 Your friendly neighborhood compliance enthusiast who lives and breathes HSA regulations, so you don't have to! I've been chatting with so many brokers and HR pros lately who are pulling their hair out over the latest HSA compliance curveballs.
I get it. You're trying to guide your clients (or manage your own benefits program) through increasingly complex regulations while avoiding those scary penalties. The good news? I've got your back with some serious insider knowledge on what's tripping up even the savviest benefits professionals in 2025!
Plus, stick around until the end and learn about our upcoming HSA Compliance CE Webinar on March 27th, 2025 – It’s 100% free with free SHRM and CE Credits.
The HSA Compliance Landscape for Brokers and HR Teams
Alright, so you're diving into the world of HSAs – Health Savings Accounts. We're talking about real money, real people's health, and a whole lot of regulations that can feel like they're written in a different language.
So let's skip the legal jargon and focus on what you actually need to know to keep your clients out of hot water. Consider this your friendly guide to making HSA compliance less of a headache and more of a strategic advantage.
Did you know workers rated their financial worries at 6.3 out of 10 in 2024? That's according to the latest EBRI and Greenwald Research survey. And it gets more concerning - a recent SHRM study found that 43% of workers say inflation has had an extreme or significant impact on their personal finances. Yikes!
This is exactly why I'm so passionate about HSAs right now. They're such a powerful tool for financial wellness, but most employees aren't using them to their full potential.
The 2025 HSA Numbers You Need at Your Fingertips
The IRS announced the new 2025 HSA limits on May 13, 2024, and these are the numbers you'll need when advising clients or updating your benefits systems:
For brokers, these are the numbers you need to verify when reviewing your clients' plan designs for the upcoming year. For HR teams, these are the figures you need to update in your systems ASAP. Even a $50 error on that minimum deductible could disqualify an entire plan from HSA eligibility!
The 5 HSA Compliance Traps I'm Seeing Brokers and HR Teams Fall Into
1. HDHP Plan Design Disqualifications
This is the #1 issue I'm seeing brokers accidentally overlook when advising clients! Your client's plan absolutely must hit that $1,650 single/$3,300 family minimum deductible now, or they'll lose HSA eligibility entirely.
Just last week, I was reviewing a renewal package for a broker whose client nearly implemented a $1,600 deductible for 2025—the old limit.
2. Contribution Limit Administration Errors
The new contribution ceilings for 2025 are $4,300 for singles and $8,550 for families. That is straightforward enough—until you factor in mid-year plan changes, employment transitions, family status changes, and catch-up contributions.
For brokers, this is a perfect opportunity to provide value-added guidance. For HR teams, it's a potential compliance headache.
3. Employee Status Change Management
This is where things get especially tricky for HR teams and creates risk exposure that brokers need to help clients manage. When employees start Medicare, switch to part-time, begin working remotely from another state, or experience other status changes, their HSA health insurance eligibility can change instantly.
Most companies have a formal process for managing HSA adjustments during employee status changes—leaving the majority at significant risk.
4. Documentation and Substantiation Gaps
In my compliance reviews with clients, this is consistently the biggest vulnerability I uncover. Most of the organizations are cited primarily for documentation deficiencies, not actual operational violations.
For brokers, this represents a critical advisory opportunity. For HR teams, it's about having the right systems in place before the auditor comes calling.
5. Comparability Rule Violations
The comparability rules create a significant compliance risk for brokers advising on employer HSA contribution strategies. Likewise, HR teams implementing these strategies need to understand the rules to avoid discrimination issues.
A research indicates 58% of employers with multiple health plans failed at least one aspect of the comparability testing requirements.
What’s More with Clarity?
Beyond the financial impact, there's always the trust factor. Studies show compliance issues are the #1 factor undermining employee confidence in their benefits programs—something neither brokers nor HR professionals can afford.
I'm seeing some positive trends with account balances growing, but as brokers, you've got a crucial role to play. Here's what I recommend sharing with your clients to help their employees get on a better financial path:
- Take on HSA benefit education. Help your clients improve employee understanding of HSAs by providing them with ready-to-use communication materials. I was shocked when I saw the Bank of America data showing only 14% of best HSA accounts holders are investing their funds! That's a conversation starter you can use to position yourself as a strategic advisor.
- Suggest smart 401(k) plan designs. Differentiate yourself by recommending auto-enrollment features. And let's not forget about auto-increase options - they help employees boost their contributions without creating administrative headaches for HR teams. When discussing plan design with clients, highlighting the competitive advantage of offering a 401(k) match can help them attract and retain talent.
- Go for Clarity HSA. Tailored and assembled as a turnkey solution that makes implementation easy while providing the metrics you need to demonstrate ROI to your clients. The Clarity HSA Plan has consistently outperformed industry averages for employee engagement and financial wellness outcomes with a lot of additional benefits.
Let Our Expert Panel Help You Navigate These Waters!
That’s a lot! But you’ve got more to come from Clarity Compliance Experts’ desk.
Whether you're a broker looking to enhance your client advisory services or an HR professional managing your own compliance program, our upcoming CE webinar is designed specifically for you!
In this broker and HR-focused session, we'll:
- Break down the compliance implications of the new 2025 HSA limits
- Provide broker-ready client tools and HR-ready implementation resources
- Share real-world case studies of successful compliance strategies
- Offer expert answers to your most challenging HSA scenarios
- Help you position yourself as a trusted HSA compliance resource
- Answering what does an HSA cover with detailed Q/A session
Plus, you'll earn valuable free SHRM CE credits that will keep you at the top of your professional game!
Free CE & SHRM Credits - Reserve Your Spot Today!
Our compliance webinars consistently reach capacity, with brokers and HR professionals recognizing the immense value of staying ahead of these complex regulations.
Don't miss our upcoming webinar: HSA Headaches? Curing Compliance Confusion for 2025 on March 27th, 2025 – It’s 100% free with free SHRM and CE Credits.
Secure your spot today and become the HSA compliance authority your clients or organization needs!
Looking forward to seeing you there!
Your compliance partner,
Claire 💙
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