How to sell HSAs
I often see different approaches to selling HSAs. Being on the tech side, and also having the experience of being a benefit advisor in the past, I thought I'd share how we used to position HSA’s for our clients. Here's a breakdown of how to approach a variety of clients with HSA, Wellness and Flex Products.
Small Businesses (Less Than 10 Employees)
These businesses generally cannot afford a traditional insured plan but do need some coverage for the owners/executives and maybe a few employees. myHSA allows an annual maximum and therefore has much needed cost certainty for the small business. Cash is king, and they need fixed expenses.
Mid-Size Businesses (10-50 Employees)
Mid-size companies have to offer benefits to stay competitive and attract talent from larger organizations that will have “Cadillac” benefit plans. We would put in place, base minimum standard insured products and then add a “top up” HSA. This allowed the standard coverages to be in place but also a level of flexibility that was a selling point to the employee. The employees likely come from a one size fits all plan so they really appreciate the flexibility that HSAs offer.
Flexible Spending Accounts for Mid-Size Businesses (10-50 Employees)
We loved these, as many other advisors were not approaching it this way. Flex Plans allow the company to offer a “cool” benefit that had flexibility, wellness, and a pensions aspect. We used to have 3 offerings the employee could select: HSA, Wellness, and DC RRSP. These plans are set up with a flat amount for each which had cost certainty. The employees then allocate between their 3 options. This allows a "large company flex plan feel" for a mid size company. We would often also add the pooled products form one carrier. For example, to cover the 2x Salary Life, AD, and maybe just LTD. The Flex Plans are pretty well rounded with a full suite of benefits at a reasonable and stable cost to employer.
Larger Companies (50+ Employees)
We have found that for larger size companies, it's best to add a top-up or a plan for very specific items. For example, Wellness Spending Accounts are great for this, and many insurers don not allow customization or lowered benefits if they offer a wellness spending account at all. Another great trick is to have a Flex Plan as a top-up with different options. Also because the numbers are larger you can look to add group CI as an option!
If you want to know more about the plans we offer, contact us for a free demo of the system!