How tech can help simplify HSAs and FSAs management

In the realm of healthcare financing, Health Savings Accounts (HSAs) and Flexible Spending Accounts (FSAs) have become vital tools for us to manage our medical expenses. The rapid advancement of technology brings a new era of convenience and accessibility for users: we can now manage these accounts more efficiently and smartly than ever before.

Health savings accounts combine a way to cut taxes, pay medical bills and have some peace of mind for anyone enrolled in a healthcare plan that has a high deductible. 

However, the process to set up an account and use it correctly is daunting for many Americans.

Health savings accounts, or HSAs, and flexible spending accounts, or FSAs, should be easy to set up for people with health plans that have a high deductible. These accounts help Americans save thousands each year on medical expenses. 

The point of the plan is to hold a safe amount to pay for certain bills that are related to health - and even hold onto for use in retirement. 

With HSAs, that savings balance rolls over from the end of one year into the next year - meaning the dollars stay in the account.  That way health care is less of a burden and becomes part of yearly, growing savings.

Yet only about half of Americans are aware of the features of these types of plans, according to a Fidelity survey from this year.

Technology is helping change the ease of HSAs and FSAs, so the dollars can roll in.

Most of the contributions to these accounts are able to come out of a paycheck before it’s taxed. Often, the way to get into these accounts is through an employer. Those employer systems can be dated and difficult to navigate to find forms, or even an account balance.

Now, some accounts take the steps of passwords for savers to find documents like monthly fees and artificial intelligence can even help prepare for how much to save, and when.

1. Set and forget with an employer

More employers use tech-enabled tools like robo-advisors for their 401ks. HSAs and FSAs aren’t much different. An employer can auto-set an FSA or HSA to withdraw as little as a dollar per paycheck. Later, that tool will remind the saver how much is in the account and offer to adjust.

2. Automate savings, and personalize investments

Do-it-yourself savers, small business owners and others without a HSA offering, but still using a high deductible plan, can set up a HSA account. This account is usually pretty flexible and can invest in specific funds, much like a 401k. It offers the same options to set a paycheck deduction, and forget. Some plans do charge a monthly fee. Using just an app, savers can pick what fund they want and even have it adjusted when markets pivot - so that savings aren’t lost.

3. Personalize savings based on AI-guided health plans

More health insurers offer personalized care, from nutrition to bloodwork. A HSA could do the same by using artificial intelligence. AI can offer personalized recommendations on how much to save - and when.

4. Cut the clutter

Busy small business owners are often overloaded with paperwork. An HSA might seem like another case of paper on paper. However, AI can streamline the process. The AI tool, like a chatbot, can gently email or otherwise remind owners of accounts when to submit an invoice or medical bill for reimbursement, streamline new investments in the accounts and more.

5. Get creative. Tech will help figure out ways to pay for more with a FSA or HSA

Now, apps take FSAs and HSAs as payment. DoorDash and Instacart recently announced they accept payments from health savings accounts and flexible spending accounts to cover the cost of certain health items ordered on the app for delivery.

The use of HSAs are endless and have a great tax advantage - much like a 401k. Using a financial tool like Oxygen and others can help streamline the process.

|| Sonya Swink is a business & finance reporter based in New York. She has contributed to a variety of news outlets, including the Financial Times, The Guardian and Gothamist. Sonya is a graduate of the Newmark Graduate School of Journalism at CUNY.

Source: community.getoxygen.com