America's Benefit Specialist August-September 2022

HSA s : A HEALTH AND WEALTH STRATEGY FOR EMPLOYER SPONSORED HEALTH PLANS DURING INFLATIONARY TIMES

By Christine Cooper CEO, aequum LLC Cleveland, Ohio ccooper@aequumhealth.com

The rapid rate of inflation is proving Health Savings Accounts a strategic and valuable option for employer-sponsored health plans. Here’s why. A significant number of American work ers are “financially fragile,” unprepared for everyday expenses, let alone out-of-pocket medical costs. Most have no savings ear marked for regular medical cost sharing— deductibles, copayments, coinsurance—let

alone “surprise” medical expenses. Now compounded by a near-confirmed national recession, coupled with a dramatic increase in the rate of inflation, employers and employees alike are at a level of heightened concern over the potential for significant increases in both the cost of coverage (employer and employee contributions) and increased point-of-purchase cost-sharing.

Finding the right balance between a benefit package that is adequate and afford able yet financially sustainable has never been easy, but it is especially challenging given the current labor market and volatile economic conditions. Healthcare afford ability is a top concern for many workers, in particular low-wage earners or those coping with a chronic medical condition. 1 Increasingly, Americans have become anxious over “what’s next” in terms of price increases. Many are stressed over the soaring cost of living. Most plan sponsors, administrators and brokers need to update their health coverage to incorporate a more holistic approach that will consider all expenses paid by participants. Generally, plan sponsors have maintained the same strategy dating back to the years preceding health reform. An adjustment is

INCREASINGLY, HEALTH-PLAN SPONSORS HAVE ADOPTED STRATEGIES AND DESIGNS THAT ENABLE MEMBERS TO PROACTIVELY BUILD MEDICAL SAVINGS.

34 ABS | benefitspecialistmagazine.com