Open enrollment is only a couple months away, and planning may be beginning now for 2018. As companies look to contain health care costs, more and more are considering a high deductible health plan (HDHP) with a health savings account (HSA) in addition to a traditional health plan or possibly in place of a traditional plan. Either case requires a new level of education and support to get everyone’s understanding of the value of this type of product.Why Should You Pay Attention?
While the numbers show growth as in 15% annually since 2011 with approximately 17.5 million with a HDHP and HSA in 2014 according to America’s Health Insurance Plans’ Center for Policy and Research, other studies still find a lack of understanding about how these plan work and their benefit.
Some companies have realized you just have to get started and help employees see the value along the way. Workforce Magazine offers a great example in their article titled, “Do You Know the Way to HSA?”
As reported in the article, the organization Sunovion Pharmaceuticals Inc., introduced a HDHP option along with their traditional health plan in 2011 and 11% of their workforce chose the HDHP with HSA option that first year. By last year during open enrollment, 58% of employees chose the HDHP with HSA.
The company contributed $900 to individual and $1,800 to family accounts and since 2011 participants have had a total of $11 million in their HSAs and used $7 million to pay for their healthcare bills.
It took employees some time to learn how to use their plan and account. However, as that transfer of responsibility happened, their workforce felt empowered and became better healthcare consumers. Once employees hit $2,000 in their accounts they can move their money into other investments.
Their workforce is now keeping balances in their HSAs and values the money contributed by the company and the money that they can contribute pretax as well. The organization values having below national norm health care costs.
Are YOU Looking to Add an HDHP with an HSA?
If you’re thinking of offering a HDHP for 2018, 24HourFlex can help. We have resources and people available to provide examples, education, and interactive tools to help employees understand and have a good experience with this different type of health plan and savings vehicle.
If you're interested, we'd love to hear from you.
Remember: It may not happen over night, but employees will pay attention. Adding an HDHP with an HSA can work for you, bringing short-term and long-term value to your company.