The power of personalization for driving HSA adoption

As recent healthcare reforms make millions more employees eligible for Health Savings Accounts (HSAs), the real challenge for benefits leaders is not just offering them, but communicating their value in a way that truly resonates. According to new research from WEX and Visa, a significant disconnect in engagement remains: while nearly 60% of HSA adopters view the accounts as crucial for retirement, over 90% are not investing their funds. This gap between intention and action highlights a core problem in benefits communication. To combat this moving forward and encourage HSA adoption on a larger scale, benefits leaders should pivot from technical, jargon-filled messages to those that connect with their employee audiences on a personal and emotional level.

With Open Enrollment on the horizon, WEX has published a new white paper, “Maximizing HSA adoption and engagement – The power of segmentation to drive tailored messaging,” to help benefits administrators evolve their strategies and meet this moment. The research details how a strategic approach to communication, rooted in segmentation and personalization, can significantly accelerate HSA adoption and utilization by speaking directly to employee motivations and needs.

Why HSAs? Employee Priorities

To kickstart and effectively drive HSA enrollment, communication should be customized to resonate with the varied motivations and life stages of employees. WEX and Visa’s analysis of qualitative and quantitative data shows why employees choose an HSA in the first place, with key reasons including:

• Financial Security: HSAs offer a way to set aside money for both routine and unexpected healthcare costs, providing a sense of security and peace of mind.
• Tax Advantages: They are a powerful tool to lower taxable income while paying for healthcare expenses.
• Long-Term Growth: For some, HSAs are a way to invest funds over time to combat rising costs and save for retirement.
• Employer Contributions: The “free money” from employer contributions is a significant motivator, influencing an employee’s decision to enroll and contribute.

The Need For a Personalized Approach

The long-standing, one-size-fits-all approach to communication is failing to resonate with consumers. Research highlights that messaging emphasizing the functional and emotional benefits of HSAs is far more motivating than technical details. The study identified the top five most compelling messages are that HSAs:

• Can pay for a wide variety of qualified medical expenses.
• Are flexible and easy to use.
• Allow for tax-free withdrawals for qualified medical expenses.
• Offer the ability to use funds in retirement for any purpose without penalty.
• Can be supplemented with employer contributions.

To prepare for Open Enrollment, employers should consider evolving their education strategies by adopting a personalized approach. Tailored messaging, rooted in data-driven segmentation, can significantly accelerate HSA adoption. Instead of long PDFs and infrequent touchpoints, benefits leaders should focus on:

• Segmentation: Divide audiences by factors like age, income, and health status to understand diverse needs.
• Personalization: Use individual names and create personalized contribution scenarios that align with specific life goals.
• Relevance: Ensure messages highlight how HSAs provide tangible solutions for varying healthcare situations and financial objectives.

The Role of Employer Engagement

Our research also indicates that employer contributions are, by a wide margin, the most important factor influencing an employee’s decision to contribute to an HSA. By offering contributions, employers provide immediate financial value and signal the importance of saving, which motivates employees to increase their own contributions.

This is where a modern benefits platform can make all the difference. Leveraging a decision support tool like WEX’s BeneFITWise Premier during enrollment can increase HSA adoption by simplifying complex information and providing personalized guidance. By helping employees confidently compare plans, these tools empower them to make choices that align with their individual needs.

Tailored messaging isn’t just better communication—it’s a strategic lever for adoption, engagement, and satisfaction. It’s a way to reduce friction, improve understanding, and unlock the full potential of HSAs.

To learn more about these research findings and their impact on your benefits strategy, download our free white paper: “Maximizing HSA adoption and engagement – The power of segmentation to drive tailored messaging.”