WageWorks rolls out new HSA enhancements
WageWorks has released new tools for health savings account users in an effort to help them save more and spend smarter.
The consumer directed benefits company added new capabilities for employees to access their HSA information, the company said Wednesday. WageWorks has offered HSAs for nearly 15 years, but the changes reflect feedback from customers, says Scott Rose, chief operating officer at WageWorks.
“We’re continually evolving our product offerings based on vital feedback from our clients and participants and trends in the healthcare industry,” he says.
Among the updates is an HSA Hub, which allows employees to view their election amounts, total account, investment and cash balances, as well as their earnings history. Workers also now have the capability to view their HSA receipts and access future HSA funds before their tax-free contributions have accumulated in their account. The company added comparison tools and multimedia educational resources, like how-to videos, that give participants information on how to best use their HSA.
WageWorks clients and participants can access the upgrades through BNY Mellon, and employers choose whether they want to offer these features to employees. The new capabilities are available at no additional cost to participants, Rose says.
HSAs are becoming a more popular benefit for workers, with more companies accepting these funds as a means for purchasing health and wellness products. In March, Amazon said it would begin accepting HSA and FSA dollars to purchase medical supplies. Walmart also allows consumers to purchase healthcare items with HSA and FSA funds.
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Consumers also are taking notice — the number of HSAs exceeded 25 million holding $53.8 billion in assets in 2018, according to research from HSA investment advisory and consulting firm Devenir. The firm predicts that the HSA market will approach $75 billion in assets by the end of 2020, with 30 million accounts.
“In a competitive economic environment with low unemployment, we saw employers contribute almost $9 billion to their employees’ HSAs in 2018, a meaningful increase from the previous few years,” Jon Robb, senior vice president of research and technology at Devenir, says in a statement.
WageWorks has more than 700,000 HSA accounts, representing $1.2 billion in cash balances. Rose thinks HSAs have benefited from the shift in focus toward consumer-directed high-deductible health plans and says WageWorks is “well-positioned” to capture additional market share.