Why 2018 Was the Year for HSAs
December 12, 2018
The future is now for Health Savings Accounts (HSAs)! The increasingly popular pre-tax benefits plans are chock-full of potential thanks to their savings and investment capability. In 2018, we made them even better.
Before we roll out even more enhancements in 2019, we wanted to revisit a few of the ways we transformed the experience in 2018. And be sure to complete the form below for your “2018: HSA Year in Review” and “The Pulse on HSAs” downloads to see more.
Increased participation with HSA Advance
In 2018, 70 percent of large employers offered their employees a High-Deductible Health Plan (HDHP), and the plans are especially popular with millennial employees due to their reduced premiums and ability to be paired with a Health Savings Account. However, the first few months are a building period for employees as they work to establish a balance within their account to cover their deductibles.
When you offer HSA Advance to your employees, they’re able to borrow funds against future contributions to give them access to plan dollars on Day 1. Future contributions are then used to repay the plan. Once they repay, your employees can build up their balances to save or invest.
Enhanced investment capabilities
A Health Savings Account’s investment potential has transformed the retirement-planning strategy. With an account, your employees can grow their plan dollars by investing in mutual funds, which have an expected rate of return that’s much higher than an HSA’s standard interest rate.
We took steps in 2018 to streamline and improve the investment experience by releasing enhancements that:
- Let employees manage their investments directly from their online accounts.
- Give them access to target retirement funds, which include a diversified mix of stocks, bonds and other investments.
- Allow for a one-time transfer between your employees’ cash account and investment account within their Health Savings Account for more control on how to use their funds.
Improved mobile experience
Over three-quarters of Americans own a smartphone, while 20 percent of Americans use only their smartphones to access the internet and their online accounts. That puts even greater importance on providing innovative mobile solutions.
The Benefits Mobile App by Discovery Benefits was redesigned and enhanced this year to give your employees a more comprehensive and user-friendly experience. With the Benefits Mobile App, your employees can:
- Easily determine if a purchase qualifies as an IRS Code Section 213(d) eligible expense by using the Eligible Expense Scanner and their phone’s camera.
- Check their HSA’s investment and beginning balances, monitor recent investment activity and view their rate of return.
- Access important notifications, including HSA tax statements.
Curious to learn more? Complete the form above to get your downloads.