Austin, TX and Richmond, VA, May 02, 2019 (GLOBE NEWSWIRE) -- HealthSavings Administrators, a top health savings account (HSA) provider, today shared details of its award-winning program designed to eliminate barriers for employee investment in HSAs.
As a leading provider of investment solutions, Dimensional Fund Advisors (Dimensional) recognizes the importance of being financially prepared for potential healthcare expenses in retirement. By working with HealthSavings Administrators, Dimensional was able to offer a comprehensive HSA investment solution and to help educate its employees on why investment HSAs are an essential component of a strategic retirement plan.
HealthSavings Administrators was awarded the 2019 HSA Communications Signature Award by The Plan Sponsor Council of America (PSCA), part of the American Retirement Association (ARA), for their work with Dimensional on employee education and engagement within the Dimensional HSA plan. PSCA's Signature Awards recognize excellence in retirement plan communications that help employees understand the importance of retirement savings and how to better prepare for retirement. Also included in the “Best-in-Show” session, Dimensional and HealthSavings Administrators were honored this week at PSCA's Annual National Conference in Tampa, Florida.
Dimensional’s previous HSA offering required that employees maintain a $1,000 cash balance prior to investing their savings. Only 14 percent of employees with HSAs had sufficient account balances to be able to invest, and only five percent of employees with HSAs chose to do so. Through "first-dollar investment HSAs" and sustained employee education using a range of materials, including in-person presentations, infographics and videos, HealthSavings Administrators worked with Dimensional to help increase the number of employees investing at least a portion of their HSA funds by 6x – with over 75 percent of employees’ HSA funds now directed towards investments rather than maintained in a savings account. In addition, the percentage of HSA funds invested increased by approximately 4x, and the average employee’s HSA balance now tops $6,000 (double the industry average).
“Our HSA plan is now used by almost 90% of our employees covered under our medical insurance. Our high savings and investing rate are strong signs that our employees are taking advantage of this vehicle as part of their overall retirement planning,” added Aaron Marcus, head of global human resources for Dimensional Fund Advisors.
“As healthcare costs continue to skyrocket, retirement strategies must also evolve. By educating employers and employees alike on the benefits of HSAs we are empowering participants with the critical knowledge needed to take control of their retirement goals,” noted Craig Keohan, chief revenue officer at HealthSavings Administrators. “We are thrilled to win this award alongside Dimensional and look forward to continuing our strategic alliance.”
To read the complete case study and view the associated infographics and videos, please visit https://healthsavings.com/dimensional-psca/.
About HealthSavings Administrators
HealthSavings empowers consumer-driven health plan participants to invest all their health benefit dollars in institutional-class funds so they can grow their savings tax-free and meet their financial goals for a happy, healthy future. By choosing from a carefully curated selection of funds with lower expense ratios and no trading fees, HealthSavings accountholders have historically saved five times more than the industry average. Visit HealthSavings.com to learn more.
About Dimensional
Dimensional is a leading global investment firm that has been translating academic research into practical investment solutions since 1981. Guided by a strong belief in markets, we help investors pursue higher expected returns through advanced portfolio design and careful implementation. With clients around the world, Dimensional has 13 offices in nine countries and global assets under management of $576 billion as of March 31, 2019. Learn more at dimensional.com.