The passage and implementation of the Affordable Care Act (ACA) have brought with it many sweeping changes to the healthcare industry and have caused many employers to take a fresh look at the way they offer healthcare benefits. Insurance market reforms – such as the establishment of public exchanges, expanded coverage mandates, and quality and value incentives – continue to drive employers and consumers toward adoption of high deductible health plans (HDHP) and complementary health savings accounts (HSAs).
Consumer-driven healthcare plans and accounts have been continuously growing and evolving since the introduction of FSAs in the 1970s – from the rollout of the HRA, to the latest incarnation of account-based health plans, the HSA. There are many compelling reasons to ride the wave of migration away from other CDH accounts to leverage and incentivize HSA adoption. We will dive into those reasons, pairing best practice guidance that will help benefits administrators accelerate the path from FSAs and HRAs to HSAs.
With the Alegeus automated billing and invoicing solution, you can recognize benefit account administration revenue faster and with less hassle than ever before.
Like with any business, trying to keep up with manually invoicing and billing your clients can consume an inordinate amount of time. What if we told you that you could significantly reduce the time spent on billing and get paid faster? With automated billing and invoicing from Alegeus, you can!
Did you know the Alegeus platform was designed to manage the unique requirements of Voluntary Employee Benefit Associations, or what is more commonly known in the market as VEBA? Alegeus clients can easily offer and administer VEBA programs leveraging their existing platform, operational infrastructure and customer engagement channels.
HSAs and FSAs seem to get all of the attention, and growth in HSAs continues to outpace HRAs, but the fact remains that HRAs have grown steadily along with HSAs and are predicted to continue to grow at a rate of 10-15% annually. This modest growth projection underscores the potential opportunity many plan administrators are leaving on the table by not fully helping employers understand reasons to consider HRAs in addition to HSAs.
The movement toward cultivating a healthcare savings mentality is still very much in its infancy. While there is a lot of work to be done to help consumers better understand the benefits of HSAs and to guide them toward better investment strategies, market trends show there is a huge opportunity for health plan administrators and employers to take a proactive approach to provide advice and education that will increase consumer confidence in healthcare savings.
With healthcare costs on the rise, it comes as no surprise that employers who offer CDH products (like HSAs, FSAs or HRAs) are looking for creative ways to engage their employees to create awareness and increase adoption. These healthcare saving and/or investment vehicles help to ease the burden of increasing expenses while enabling both employers and employees to move with the market shift toward consumerism.
In much the same way that company-sponsored pension plans of yesteryear resulted in employee apathy about where retirement dollars came from and how they were invested, leading to today’s consumer-directed 401ks, company-sponsored health plans are following a similar path leading to greater adoption of HSAs.
Healthcare is becoming more and more consumer directed. We’ve all seen or experienced consumer driven health first-hand, in some way – whether it is determining which health plan is right for our family, making care decisions for a parent or loved one, receiving an unexpected bill for services, or trying to determine if a health benefit account (FSA, HSA, HRA) is the best vehicle to meet our future healthcare needs.
Long gone are the days of simply picking a benefit-rich health plan during open enrollment – essentially setting and forgetting healthcare management until the following year. With an era of consumer-driven healthcare upon us, this paradigm shift requires the modern healthcare consumer to be engaged and empowered to make the best decisions for their families and their finances.