Accounts can be under-funded for a variety of reasons – ongoing living expenses are too high to allow for savings, other priorities may have consumed the healthcare insurance premium savings, or perhaps a large expense occurs early in the year before sufficient funds have been deposited in the HSA account. An under-funded account can lead to either a rejected HSA authorization or non-use of the HSA product entirely. The employees are then left to pay (or not pay) the bill on their own.

Our HSA Credit Solutions are low-cost and guaranteed-issue. By linking employees’ repayment to payroll deduction, only E-Duction offers consumers guaranteed-issue, low-interest budgeting tools for HSA expenses that are not fully funded. When an expense comes through, first it will be funded from the consumer’s HSA account. If and when the HSA account has been depleted, any remaining amounts will be covered by the HSA Credit Solution and repaid via automatic payroll deductions.

Alternatively, if you prefer, you can offer consumers a choice about how to fund their expenses. If, for example, consumers want to build up savings in their tax-preferred HSA accounts and pay for their everyday healthcare expenses out-of-pocket, you could allow them to make that choice. The program can be set up with a fixed or consumer-directed funding hierarchy – it is up to you.

This low-cost, guaranteed-issue program has advantages for all involved:

Insurance companies and other claims payers	-	Protects provider-negotiated discounts
Healthcare providers	-	Provides guaranteed payment
Banks and other lenders	-	Improves product adoption and reduces losses
Benefit brokers and consultants	-	Satisfies clients and enhances ability to contain costs
Employers	-	Enables participation in lower-cost healthcare plans
Employees	-	Reduces stress due to uncertainty of new expenses and saves money