Health savings accounts (HSAs) are not only a powerful, tax-advantaged savings tool — they also offer a wealth of data and insight. For benefits administrators, this data represents untapped potential. Leveraging it can help you demonstrate value, optimize plan design, and deepen engagement with employer clients.

At Alegeus, we believe the ability to interpret and translate HSA data is key to standing out in a crowded benefits landscape. Here’s how to use that data to drive measurable improvements in client outcomes and position yourself as a strategic partner.

Many benefits administrators focus on plan setup and management, but those who stand out are often the ones who can translate metrics into meaningful stories. Employers want more than dashboards; they want insight.

Ask yourself:

• Are average contributions aligned with employees’ financial goals?
• What does a realistic growth trajectory look like for a particular employer’s population?
• Are funded accounts increasing year over year?

These questions help position you as a trusted advisor, elevating your role beyond administration.

Account and asset growth are tangible indicators of a healthy HSA program.

Tip: Use employer-level growth data to tell a success story. Show how an engaged, educated population leads to increased savings and tax advantages for both employees and employers.

One critical but often overlooked metric is the ratio of funded to unfunded accounts. A higher percentage of funded accounts reflects stronger engagement. It also may signal that your communication and onboarding strategies are working.

Also, consider that 61% of account holders have balances under $1,000.1 This means many are left unprepared for even minor medical costs. Encouraging early and consistent contributions helps build financial resilience.

Not every HSA participant is eligible or ready to invest, and that’s okay. But eligibility-adjusted adoption rates provide a clearer picture.

Many participants wait after crossing the investment threshold. You can help employers understand that building investment engagement is a journey. Offer tools to accelerate that path through education, seeding strategies or simplified onboarding.

Beyond dollars and deposits, operational KPIs tell you how frictionless the user experience really is. Consider:

• CIP failure rates: High fail rates may point to upstream data quality issues.
• Beneficiary designation: When an HSA has a beneficiary on file, it signals strong account literacy. A high number of HSAs with beneficiaries indicates an effective strategy.
• Investment experience: Users in real-time investment environments log in twice as often and skew younger, suggesting increased engagement and long-term thinking.

Each of these data points helps you assess and improve the user journey from end to end.

Turn insights into action with the right tools
Alegeus’ Insights Manager aggregates these metrics into a unified view of HSA program health. From contribution behaviors to experience markers like statement preferences and transfer activity, this tool enables TPAs to:

• Set realistic, tailored growth benchmarks
• Identify underperforming client segments
• Quantify the ROI of employer contributions or educational campaigns
• Present clear, concise value to employer stakeholders

In a benefits environment increasingly shaped by personalization and ROI, data isn’t just valuable; it’s vital. The administrators who thrive will be the ones who shift from metrics to meaning. Use the tools, tell the story, and help your clients build healthier, more financially secure futures — one HSA at a time.

Sources:
https://www.devenir.com/wp-content/uploads/2024-Year-End-Devenir-HSA-Research-Report-Executive-Summary.pdf