Pub. 7 2017-2018 Issue 2

10 O V E R A C E N T U R Y : B U I L D I N G B E T T E R B A N K S - H E L P I N G C O L O R A D A N S R E A L I Z E D R E A M S W hile many financial organi- zations are reluctant to offer or see the value of offering health savings accounts (HSAs), pro- posed bills indicate that HSAs will not only survive the healthcare debate but flourish with upcoming HSA-friendly legislation. Although HSAs appear to be “just” spending accounts that offer limited value for the amount of work they are to administer, dig deeper and you realize that not all HSA owners are the same. Each requires different service based on how they use their HSAs. We’ve identified four types of HSA owners that use their HSAs differently: the FSA user, HSA user, HSA saver, and HSA investor. Understanding these personas is the key to better positioning your organization to attract and retain HSA owners from all of the HSA owner types and to help grow your business. The HSA saver and HSA investor personas, discussed here in the second of a two-part series, can accumulate large balances and already recognize the importance of maximizing their HSAs’ savings potential. The HSA Saver HSA savers not only recognize the tax benefits of using their HSA to pay for their current medical expenses, they recognize and value the HSA as a long- term savings vehicle for future medical expenses. HSA savers contribute the maximum amount each year, and while they use the assets when needed for medical expenses they incur, their over- all goal is asset accumulation. HSA savers’ account balances will grow at a faster pace than HSA users’ accounts—who use their HSAs for all of their qualified medical expenses. HSA savers, if possible, will pay medical ex- penses out of pocket rather than tapping into their HSAs for every expense. The HSA Investor Similar to HSA savers, HSA inves- tors treat their HSA as an additional tax-deferred savings vehicle. HSA savers not only maximize their contributions, but they oftenmake the conscious choice to pay medical expenses out of pocket rather than using their HSA. With contributions being the main account activity, HSA investors’ account balances growmuch faster than the oth- er three personas we’ve discussed. Many HSA investors take it one step further by looking for more robust HSA investment options to increase their rate of return. Although HSA investors are looking for additional investment options, they typically leave a portion of their ac- count balance in the traditional cash or demand deposit account to ensure that they have some liquid assets available for medical expenses. In this case, the HSA investors could be “shared” by both a bank and a nonbank organization. Opportunity Attracting and retaining the HSA saver and HSA investor personas would ultimately bring financial organizations larger balances and less administrative work because these HSA owners take Why the “One Size Fits All” Marketing Approach Doesn’t Work With HSAs–Part 2   continued from page 9