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Is Your High Deductible Health Plan (HDHP) HSA Qualified?

Jeff Griffin

As healthcare costs rapidly started to rise in the 2000s, insurance companies started to push high deductible health plans, which came with lower monthly premiums, but higher than average deductibles. That trend has continued to the present day, where HDHPs (high deductible health plans) are as popular as ever among employers.

According to the
Kaiser Family Foundation, employers offering HDHPs with some kind of savings option has increased 25 percent over the past decade. In fact, 29 percent of workers covered by employer-sponsored health plans are now enrolled in a high deductible health plan.

One of the major perks of being enrolled in an HDHP is the ability for employees to open and contribute to an HSA (health savings account) — but what many employers (and employees) don’t realize is that not all health plans with high deductibles are eligible for this benefit. So how do you know if your high deductible health plan is HSA qualified?

What is an HSA?

An HSA is a tax-advantaged savings account designated for qualifying health expenditures. This means that funds which employees, employers (or both) contribute to an HSA are not subject to tax, thereby lowering the participant's taxable income for the year. While participants can contribute any amount they like, the government caps tax-advantaged funds for 2021 at $3,600 for individuals and $7,200 for families. 

For people who have experience with FSAs (flexible spending accounts), the concept is very similar. FSAs, designed to offset health and dependent care expenses, are sometimes made available through employer-sponsored benefit programs. The main difference is that funds contributed to an FSA  “expire” at the end of year in what’s called the “use it or lose it” rule. Net, if FSA participants don’t use their entire contribution, they forfeit whatever is left over.

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Topics: Employee Benefits, employee benefits broker, HSAs

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Employee Benefits Broker: The Value for Your Business

David Rook

Like all business owners, you’re trying to navigate the murky waters of health insurance and other employee benefits. It’s time-consuming, frustrating, and ultimately not a subject you're well- versed in.

In an effort to help, someone recently suggested you use an employee benefits broker. You’re not even sure what they do and you don’t want to spend extra money on them. You've also heard of other options, such as PEOs, payroll vendors, HR software platforms and the SHOP exchange. How do you sort through all of these options and confidently make the right decision?

We're admittedly a little bias on the topic, but we highly recommend you start this process by simply talking to a benefits broker. If you don't know any (and even if you do), gather a few recommendations from your peers within other organizations. Just make sure you initiate your consultation with a trusted broker who is well regarded in the industry and your market. A broker with a solid reputation will help you quickly assess all of your options and will, in all likelihood, be completely upfront with you in the event they aren't your best option.

If requesting proposals from employee benefits brokers, it's important to inquire about specific capabilities of prospect organizations, most especially as they relate to your primary needs.  Download our free guide for 100+ sample questions and scoring template.

Once you decide to move forward with an employee benefits broker, they'll guide you through sound analytical and strategic reasoning for the benefit decisions you are making for your workforce.  Employee benefit brokers are far more affordable than you might think and good ones can be invaluable to a business, paying for themselves many times over in the savings they generate for you. Brokers are especially helpful to small businesses with skeleton HR departments but are equally as useful to well-staffed operations. 

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Topics: Employee Benefits, employee benefits broker

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Shopping For A New Employee Benefits Broker: The RFP Process

David Rook

It’s certainly up for debate whether or not an RFP (Request for Proposal) is really the best method of finding a new employee benefits broker for your business. Nevertheless, if you’re planning on issuing an RFP for a new employee benefits advisor, it’s important to do it right. 

After all, a relationship between you and your employee benefits broker can span 10 years or more. Shouldn’t you strive for the best partnership imaginable? The RFP process is a time-consuming one, but when it’s done well, it creates a fruitful relationship with a trusted and highly valued business partner for years (and hopefully decades) to come.

Here’s a complete guide to issuing an RFP for employee benefits — and don’t forget to download our RFP template for additional help with getting started!

Writing an Employee Benefits RFP

First Things First: What is an RFP?

A request for proposal is “a type of bidding solicitation in which a company or organization announces that funding is available for a particular project or program, and companies can place bids for the project's completion.” In the case of employee benefits, a company is saying that they’re interested in hiring an employee benefits broker and that they’re open to new advisors.

In a way, an RFP is a little bit like a job description, stating exactly what the issuing company needs, from resources to reporting to cost-saving initiatives, and will ultimately help them codify the evaluation criteria on which the vendors’ proposals will be assessed. Essentially, the RFP should ensure all parties are on the same page in terms of requirements.

Additionally, RFPs should include background on the issuing organization, such as its lines of business, needs and expectations, as well as a set of specifications that describe the ideal solution.

Why an RFP?

It’s important to ask yourself why you’re issuing an RFP in the first place. Do you have performance issues with your current employee benefits broker? Is it a required diligence obligation? Are you simply canvassing the marketplace to see if there are better options available than your current benefits broker? Or are you looking to hire an employee benefits advisor for the first time?

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Topics: Employee Benefits, employee benefits broker, employers, rfp

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Are Your Health & Wellness Corporate Communications Missing The Mark?

David Rook

Are you missing the mark with your efforts designed to promote wellness, as well as target other population health issues? Is this inability to effectively target the right employees as well as drive real behavioral change driving up your claim costs, and ultimately your premiums?

If you’re like most small businesses, you’re relying on your employee benefits broker to help out in this area. Unfortunately, most brokers aren’t equipped to help you “unearth” these issues and they certainly aren’t staffed to help guide any effort towards taming your workforce’s true health issues. In fact, when faced with this challenge, most brokers typically hand their clients a set of somewhat generic carrier-generated posters and flyers and call it their “strategic communications plan.”

Here is what you should expect from your employee benefits broker and why customized content is far more effective than cookie-cutter fliers in the break room.

Flying Blind With Generic Marketing Pieces Just Doesn’t Cut It

Setting aside the inability to identify and target true population health risks for a moment, let’s just talk about the efficacy (or inefficacy more likely) of these communication materials. Generic fact-sheets frequently miss the mark because they are written for such a general audience that they fall flat and lack a meaningful call-to-action.

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Topics: Employee Benefits, employee benefits broker, employers

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