Skip to content

Tips for Transitioning to a New Health Spending Account Administrator

As an employer, changing health spending and savings account administrators is an important decision.

Everything from administrative set-up to communicating with employees can easily consume a lot of your time. Here are several helpful tips and insights to consider when changing to a new health saving and spending account administrator.

As you’re making a partner selection, be sure to consider technology:

Moving to a new health savings and spending account administrator partner will most likely require some technology lift. It’s essential to define what the technology work is and be thoughtful about the experiences you want to deliver to your employees. Consider these questions:

  • What technology does the new administrator provide? Portal? Mobile app? Digital tools?
  • Does this administrator have an integrated platform that will make it easy for you and your employees?
  • Can the administrator’s platform be configured to fit your enrollment or payroll needs?
  • Does the administrator own their technology, or do they go through a third-party vendor? If a third-party vendor is used, how much will you interface with them?
Two women looking at a laptop in office

Once you've decided on a partner, have a clear understanding of your role

It is critical to have a clear understanding of your role and responsibilities when you start working with a new administrator. Tasks to consider include:

  • Submission of contributions
  • Enrollment maintenance
  • Reporting
  • Communications
  • Billing

Be sure to understand how long it will take to implement the change

Know your current administrator’s rules for transferring accounts, such as the process and timing, before you begin this process. Having this information up front will help your new health savings and spending account administrator facilitate transferring balances.

For example, account holder authorization is needed since the money in the account belongs to the account holder. The current vendor may require an original signature to transfer funds, which could add time to the transition process.

marker sitting on handwritten calendar
Group of people meeting in a conference room

Develop a communication plan to inform employees about the new administrator

A clearly defined communication plan when announcing your new health savings and spending account administrator will help with the rollout and eliminate confusion. Recommended strategies include:

  • Provide plenty of time to communicate well in advance to employees. This will help with the transition and any decision making they may need to make. Further recommends communicating any change at least three months in advance.
  • Give health spending and savings accounts attention during your planning session as you build out your open enrollment communication plan. Many health savings and spending accounts have tax benefits and consequences – it is essential your employees understand the details and implications up front.

Changing health spending and savings account administrators is a key decision that has many factors to consider. For more helpful tips and tricks, reach out to our Client Advocate team at 888-460-4013, or read whitepaper, What to Consider When Choosing an HSA Administrator.

Share this: