Your Blueprint to a Successful HSA Mid-Year Transition

July 2, 2020

Experience counts when you’ve decided to change Health Savings Account (HSA) administrators in the middle of a plan year. Choosing an HSA administrator with a proven track record and defined processes is key to successfully transitioning you and your employees’ HSAs. In a recent post, we broke down the basics of an HSA mid-year transition. Now, we'll outline three key elements you should look for once you’ve decided to change administrators mid-year.

Thorough, well-communicated plan

The details of a transition, and how those details are communicated, are vital. When communicating the steps within an HSA move, we recommend a “what’s in it for me” (WIIFM) approach for both you and them. The focus should be on what your administrator, you and your employees need to do together and separately to secure a smooth transition.

With any type of change, your new administrator should provide you and your employees with information that’s easy to read and easy to digest. By breaking the process into stages, success becomes easier to achieve.

Emphasis on minimizing disruption

Most employees use their HSAs as a healthcare-savings tool rather than for retirement planning (although HSA investment balances are on the rise). Because these accounts are engaged with day-to-day, it’s important when transitioning your employees’ HSAs from one administrator to another that there’s as little disruption in their ability to access their funds as possible. Your new administrator should have dependable automation and clear, well-executed processes to reduce any disruption during or prior to your transition’s blackout period, which is when HSAs get moved to their new administrator.

Proactive solutions

To be proactive is to create positive change before there’s a problem rather than waiting for a problem to happen. And proactive insight relies on perspective, experience and know-how. Our experience in guiding thousands of mid-year transitions has helped us develop a comprehensive, phased-out process that reduces the possibility of issues cropping up or any needs falling through the cracks.

Would you like to learn more about what an HSA mid-year transition would look like with us? Complete the form below to get your free playbook and handout.

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