According to a recent study by Devenir, the HSA industry is set to exceed $30 billion within the next year, but few consumers are taking the opportunity to utilize the tax advantaged HSA for long-term investment—only $4.4 billion of the $29.9 billion in 2015 set to be invested by HSA users.
This is where even the smallest financial institution can grab a piece of the action—helping consumers to recognize the value of HSA investment.
HSA adoption is at an all-time high, and financial institutions have the opportunity to help consumers invest their contributions for long-term use.
How to Capitalize on the HSA Investment Market
The market is there—do you know how to capitalize? To answer this, we have a few questions for you to answer:
Do you know how to bridge the gap between the millions of people with HDHP coverage, but without HSAs? 42% of individuals have an HSA-eligible HDHP but did not open an HSA.
Do your customers know WHY a health savings account is so important, both in the short and long term? There is a triple-tax advantage of an HSA, and the advantages mature in retirement when—after age 65—users can utilize funds even for non-medical expenses without penalty.
Do your current HSA users know the basics of HSAs? There are 7 types of HSA user, but many underutilize the accounts—either making no contributions, letting money pass through like an FSA, or doing nothing with their account.
Do you know how to tailor your communications to reach these seven types of HSA user? If each user has different traits, there are different ways to talk to each.
Do you have the educational resources to communicate with HSA users? How can you become the trusted source of advice and information regarding HSA use and investment?