Views 4 ways employers can lessen the severity of the financial burdens ahead

One downside to HSAs is that participants can only access funds that have accumulated through pay cycles to date. Seeding HSAs or providing employees the option to access future contributions they’ll make throughout the year eliminates this obstacle, gives them more control over their finances, and enables them to receive care when they need it. It also encourages increased enrollment in HDHPs by removing the risk of first dollar exposure.

Many employers across a broad swath of industries answered the call for COVID-19 help, but some declined optional relief primarily because of the administrative burdens and capacity to support. Allowing mid-year election changes without a Qualified Status Change provides significant relief to employees as they try to maximize their benefits in a fluid economy. Also, it may be worth reconsidering some of the underutilized options that were already available before the pandemic, including halting contributions to dependent care FSAs in case that benefit cannot be maximized.