Note: To protect individual and company privacy certain information has been excluded.
Meet Mike
Mike’s a responsible hardworking employee. Although he is in good physical health, makes on-time payments to his mortgage, and has managed to put a little away for his retirement, like many Americans, he has less than $1,000 in his checking account and little to no savings. When he came down with the flu last season he was unexpectedly hospitalized, and left with a staggering $1,800 hospital bill. Mike and his family had to pinch pennies to pay off what they charged to their credit card for his care for several months, and their stress was “off the charts,” according to Mike.
“It’s hard because we already have student loan debt that keeps us from being as ahead as we’d like to each month. This just added to the stress we were already feeling financially, even though we’ve never made a late payment and afford a pretty high rent.”
Mike and his wife are about to have a baby, and they’re considering switching from their current high deductible health plan to a low deductible plan.
“I wish there was something in-between these two plans because the low deductible plan is going to charge us a lot more each month but we just don’t want to be caught off guard like that again, especially with a new baby.”
A Compassionate Solution
Mike’s story resonated strongly with us because it’s so similar to the experiences and emotions felt by a lot of other good, hardworking folks. When Clarity was established, over 25 years ago, we set out to provide meaningful solutions to today’s challenges. The challenges Mike faced are the kind we are driven to solve, which is why we’re so excited about our new product, the Ready for Life HSA.
The Ready for Life HSA is the in-between Mike is searching for because it allows him to stick with a high deductible plan that costs less per month while putting away what he can afford to prepare for the unexpected. However, what makes us so excited is the product goes one step further. It provides a built-in payroll advance. Ready for Life’s payroll advance provides on-demand support when employees don’t quite have enough money saved to cover their medical expenses. Here’s how it works, using Mike as an example.
1. Mike has a medical expense, but not enough money in his HSA to cover it.
2. Instead of charging it to his credit card, Mike swipes his Ready for Life Debit Card.
3. Ready for Life comes to his rescue with an instant, interest-free payroll advance funded by your company.
4. Mike breathes a sigh of relief because the expense is covered and he got help in his moment of need, without even needing to ask for it.
5. An automatic payroll deduction is generated and Mike pays back the advance in small, manageable amounts.
The Ready for Life HSA protects employees while putting employers in control—employers decide who is eligible for the advance, how much will be advanced, the terms of the payback, and what to do with a terminated employee who has a balance.
The Right HSA
It’s not impossible to provide employees with emotional security when it comes to healthcare. Providing workers with the option to enroll in Clarity’s Ready for Life HSA has been greatly appreciated. Here’s what employees had to say:
“Wow, I can’t believe employers are doing that for us.”
“This is an interest-free employer advance. Interest-free is a huge appeal.”
“This would drive more people into an HSA, especially first-timers who don’t have an account balance.”
Mike had an HSA, just not the right one. He had only had the account for about 4 months, so there wasn’t enough in it to cover his hospital bill. The right HAS—the Ready for Life HAS— solves this challenge with its built-in payroll advance. If Mike had had this HSA, he could have maintained his HSA balance, paid back what was advanced to him in smaller more manageable chunks and continued growing his HSA balance.
What Peace of Mind Looks Like
Peace of mind looks like the Ready for Life HSA—for employees and employers alike.
Healthcare decisions are emotional. Obtaining peace of mind means electing a plan with an affordable monthly rate and a low deductible— or built-in help for healthcare expenses until a higher deductible is reached. The Ready for Life HSA, which is paired with a high deductible plan, offers this. Start offering employees what they want while taking care of your bottom line. Skilled Clarity customer service representatives, with a minimum of 5 years of benefits experience, are available to help you learn more and get started.
