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Lumity's Take: Why Your People Still Want Health Savings Accounts

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Benefits Consultants
Lumity, Inc.

Hopefully our Spotlight Series on Health Savings Accounts(HSA) has provided you the information necessary to understand what these accounts are and how they work. But you might be wondering why this information matters in the first place.

Short answer - your people want HSAs.

Now take that with a grain of salt - your group health profile has a lot to do with whether HSAs are beneficial, but chances are many companies have a cohort of prime employee demographics that benefit from High Deductible Health Plans (HDHP). Considering the fact that millennials are the dominant age group in the workplace, most companies are likely to have a significant or growing number of employees with health profiles that benefit most from HDHPs.

Shared responsibility and community rating have a very clear purpose beyond altruistic political ideals: compelling the young and healthy to subsidize health insurance costs of the old and sick. Savvy organizations can alleviate some of the risk to their millennial employees, as well as lower premium costs for themselves, by offering at least one HSA-qualifying health plan in their entire benefits offering.

As the tax burden for millennial groups becomes heavier and the outlook for their long-term financial stability gets bleaker, this group, probably more than any other, is starting to realize that making smarter, best-value decisions for their health expenses is a means to earn a reprieve from the costs of this imposed social responsibility.

Don’t be left behind on providing a benefit that will become increasingly attractive to your largest potential talent demographic.

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