Are you feeling frustrated because employees aren’t enrolling in the HSA you offer and you don’t know how to turn this problem around? If you answered yes, you’re not alone. A substantial number of employers struggle to increase HSA participation. Fortunately, there are ways to improve your enrollment numbers. Here, we explain why your employees may not be sprinting to the enrollment line. We also detail top strategies to increase enrollment.
3 Reasons Why Employees Don’t Sign Up for HSAs
There are actually only a few reasons why employees avoid enrolling in HSAs. And, while this is good news because it means fewer problem areas to target, if these barriers are not addressed, increasing enrollment will likely continue to be a struggle.
- Lack of Exposure and/or Knowledge
Employees may simply not be aware that an HSA is an option. Or, they’re aware but lack the necessary knowledge to feel comfortable enrolling.
- Too Little Money
Workers may feel they don’t have enough cash left over in their paycheck after paying for expenses to contribute to an HSA. Many employees are still feeling the effects of the 2008 recession and have little in the way of extra cash.
- Misconceptions
In other situations, employees have the cash to contribute and have heard of HSAs, but they hold misconceptions. These fallacies may cast an unfavorable shadow over the idea of enrolling in a health savings account. Hence, they must be clarified.
3 Proven Strategies to Increase HSA Enrollment
Increasing employee enrollment in HSAs starts by targeting and eliminating enrollment barriers. Use these three strategies to increase enrollment.
- Market & Promote
Create as many flyers, brochures, and informational emails as needed to spread the word about HSAs. These materials should highlight the HSA’s most attractive benefits. Don’t stop with one flyer by the water cooler. Post flyers throughout the building, especially in areas that experience heavy traffic flow. Give each employee a brochure and send a series of informational emails. It may be advisable to send one email per month to all employees about HSAs and how these accounts can help.
Once marketing materials are created, promote them consistently. Publicity is an on-going effort and you’ll need to expose employees to HSA information several times before convincing them to enroll. It takes an average of seven exposures before consumers decide to buy1. Don’t be surprised if it takes about seven exposures to HSA information before employees enroll.
- Educate
Education goes hand-in-hand with marketing and promotion. While marketing materials may clarify some misconceptions about HSAs, you’ll want to continually work to dispel myths and misconceptions that could dissuade workers from enrolling. Host a regular Q&A session or have an open-door HR policy so employees feel comfortable asking questions.
- Make Contributions
If employees don’t have enough cash to contribute to an HSA, consider making contributions to their account. You have control over the amount, and making contributions will go a long way toward improving enrollment numbers.
As a frame of reference, an average contribution is around $850 for single coverage and $1,600 for family coverage.2 To make contributing to an HSA more feasible, offer wellness programs because two-thirds of employees would partake in wellness programming in exchange for an HSA contribution and employers save more in healthcare expenses when their employees are healthy.
Maximize the Power of Enrollment-Boosting Strategies
There are always ways to enhance the above mentioned strategies. If you’re looking for ways to do this, try:
• Providing employees with an online means to enroll, manage, and use their HSA account. Many employees mistakenly believe it’s hard to access their account when they need it.
• Being upfront and honest about why you would like to see more employees enroll in HSAs and why you’ve selected to offer them. This trust-enhancing action may encourage employees to view HSAs more favorably.
• Using some of the money you save by offering HDHPs as HSA contributions and be transparent about it. If you’re giving back to employees in this way, let them know it. This simple action will generate a lot of goodwill among employees. Workers will want to enroll in the account so they have access to your contributions, and showcasing your generosity will help you to recruit and retain top talent.
Help When You Need It Most
The strategies here will help you increase enrollment. Just give them time to take hold because nothing worth achieving happens overnight. In the meantime, if you would like to discuss HSAs, or you have questions about them, or other programs, such as FSA administration, you can always contact your benefits administrator. We have FSA administrators ready to assist you now and several additional resources you can use starting today.
1. http://www.thebabyboomerentrepreneur.com/258/what-is-the-rule-of-seven-and-how-will-it-improve-your-marketing/
2. 2011 Kaiser Family Foundation/Health Research & Educational Trust Health Benefits Survey at https://www.kff.org/health-costs/report/2017-employer-health-benefits-survey/
