the best way to save for their current and future medical expenses and retirement in general, take some time to educate them about the benefits of having an HSA. Providing objective, accurate information is one of the best ways to build a trusting, long-term relationship with your clients. Second – don’t underestimate the HSA market. Many financial organizations have questioned whether they should enter the HSA market. As in previous years, HSAs continue to enjoy enormous growth. According to the 2021 Devenir and HSA Council Demographic Survey, there were over 32 million HSAs covering 67 million people at the end of 2021. The survey also reported that one in five millennials had an HSA as of Dec. 31, 2021. This demographic is quickly replacing baby boomers in the labor force, which provides the perfect opportunity for your organization to help these individuals transition to an HSA. There’s a common misconception that HSAs benefit only wealthy individuals. But HSAs are used by individuals in every income range. For example, the following chart shows that 78% of HSA owners have a household income of less than $100,000, and 45% have income between $50,000 and $80,000. HSAs can also help these individuals create future wealth and financial stability during retirement. Continued from page 7 To help individuals determine their best option, financial organizations should consider whether the average consumer will know about these options or know where to find the answers. While information can be found either through an HSA provider or other websites, it’s hard to know if individuals will seek this information, interpret it correctly, and make a decision in their best interest. This scenario continues to compound every time an employer changes to a new benefits provider. What else should financial organizations consider? Financial organizations should consider the following key takeaways: First – it’s ok if clients have multiple HSAs. If your organization has a relationship with area businesses, you can work with local employers to provide an HSA solution that allows employers and employees to maintain an HSA with your organization, regardless of which health insurance provider the employer uses. Your organization could coordinate with employers and their employees to establish a long-term HSA relationship either by establishing a new HSA or by consolidating other HSAs that employees may have with other HSA providers. Your organization is already a trusted and known resource in the community, so when your clients are looking for www.coloradobankers.org 8
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