11 Important Questions to Ask Your HSA Company
As a time-tested HSA company, Kushner & Company knows that managing a Health Savings Account (HSA) for your employees requires an experienced Third-Party Administrator (TPA) utilizing modern technology tools for both you and your participants. Here are eleven important questions to ask of your current or prospective TPA.
- How long have you been administering contributions and disbursements in HSAs? You are going to want a firm that has at least ten or more years of experience, since these plans are subject to many IRS rules.
- Can participants access their account online 24/7 via a smartphone, tablet, or web browser? Participants want the convenience of modern technology tools to access their accounts.
- Can participants utilize a debit card to make purchases from their HSA? By not requiring that participants pay for an eligible medical purchase out-of-pocket and then get reimbursed, a debit card linked to their HSA is a valuable tool and well-received by participants.
- Can participants utilize other online features of the HSA company, such as direct bill-pay to a provider, linking an outside bank account to reimburse themselves, or contributing additional funds outside of payroll? HSA participants often want these additional services from the HSA administrator at no additional cost.
- Can a participant access HSA statements and tax forms online? Can the participant add or change beneficiaries online? Can the TPA help the beneficiaries with account closures or distributions/transfers in the event of the participant’s death? A great TPA will go beyond just the basics of administering an HSA.
- Can participants elect to invest their HSA after having a low minimum balance? Many TPAs only allow participants to keep monies in a non-interest-bearing account. A good HSA company has links between custodian banks and investment options.
- Will the TPA assist employees with determining if an expense is eligible for a tax-free reimbursement? While employees can spend their HSA monies on any purchase, only eligible medical care purchases allow for tax-free reimbursements. Otherwise, those distributions are taxable to the employee.
- Does the TPA provide tools for employers to design the HSA plan in the most tax-efficient manner? An experienced TPA has intricate knowledge of the laws and regulations in designing an HSA plan to exclude all payroll taxes such as Social Security, Medicare, federal, state, and local income taxes for both employer and employee contributions.
- Does the TPA assist when a new account is flagged for an ID check or verification? A good HSA company that provides additional services will assist the employer and participant in obtaining and submitting required documents to verify the participant’s identity and finish opening the HSA account.
- Does the TPA keep current on all legislation and regulatory changes affecting HSAs, and does it communicate them quickly to its clients? The law in this area changes often (at least annually), and the TPA should inform its clients of those changes months in advance of the new plan year.
- Are the TPA’s costs for providing HSA administration services reasonable? Not all TPAs are created equal. In today’s world, having great customer service for both the employer and employee at a reasonable cost often outweighs buying the cheapest service with spotty customer support. Value is that intersection of great service and cost.
Want guidance from an HSA company with decades of experience?
At Kushner & Company, we are proud to provide our clients with comprehensive, experienced HSA administration services. Whether you’re interested in implementing a new plan or you’re dissatisfied with your current TPA, our team is here to help. We encourage you to explore our site, learn about the services we offer, and reach out to us with any questions you may have.