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Ferne Emery is Pinnacle’s health & benefits compliance officer. In that role, she is responsible for advising clients on compliance requirements for account-based plans and other employer-sponsored benefit plans. She began her career in employee benefits in 2008 and joined Pinnacle in 2020 from a national insurance firm, where she served as the ERISA and benefits compliance national specialty practices team leader and national educator. Emery holds multiple industry-specific accreditations and is a member of the Employers Council on Flexible Compensation. She earned her bachelor’s degree in communication and business administration in healthcare management from Salem College. She is also a 200 hour registered yoga teacher, meditation and breathwork facilitator, and reiki practitioner.
Ferne Emery, Health and Benefits Compliance Officer, Pinnacle Financial Partners
A client recently asked me for advice on how to increase mental health benefits for employees while staying in budget and preserving high-deductible health plan (HDHP) and health savings account (HSA) eligibility. She knew that adding pre-deductible benefits is a risk for rendering the plan ineligible.
Her case is not unusual.Now more than ever, people are asking for their employer’s help with mental and financial wellness. (Money is a considerable source of stress, so the two are intrinsically tied.)
Because HSAs can be used as a long-term wealth-building benefit that follows the account holder past retirement, like a 401k, participation in HDHPs is on the rise. Balances can be invested in mutual funds and earn interest. This wealth strategy works well for people who can pay for health services out of pocket and leave HSA funds mostly untouched until retirement.
For participants who don’t have that luxury, the high deductible can be a barrier to treatment, especially if they have little to no HSA balance available. Employees may delay or forgo necessary mental or physical health treatment if they’re feeling financially insecure.
The good news is there are ways to improve mental health benefits without risking employee HSA eligibility or saving strategy:
1. CONTRIBUTE TO YOUR EMPLOYEE’S HSAS
The simplest way to support employee’s mental and financial wellbeing is to contribute to their HSAs. Both employers and employees experience a tax-advantage from these contributions, and employees will breathe a little easier when unexpected medical expenses arise. Some employers may choose to offer an HSA advance feature, allowing employees to borrow against their annual election. Employers offset the advance using scheduled payroll contributions.
2. OFFER A TELEHEALTH PLAN
Before the COVID-19 pandemic, telehealth plans could not reimburse for mental health services unless an HSA eligible employee had met their deductible. The pandemic changed this. Until January 1, 2025, telehealth visits for non-preventive services will not disqualify HSA eligibility.
3. SPONSOR AN EMPLOYEE ASSISTANCE PROGRAM
EAPs offer short-term counseling solutions, and an employee’s use of an EAP benefit will not disqualify HSA eligibility. The IRS does not consider most EAPs as disqualifying coverage, despite reimbursing for mental health treatment before meeting the deductible.
4. HOST LEARNING EVENTS
Learning is one of our values here at Pinnacle. We invite experts to teach on multiple topics, including how to navigate difficult conversations, financial wellness, stress management, etc. Our employees tell us which topics matter most to them. Let your employees lead the discussion.
5. LOOK PAST TRADITIONAL INSURANCE SOLUTIONS
Stress management and meditation subscription apps are new smartphone tools. Many offer corporate discounts for employers and their employees. This type of perk does not disqualify an HSA, and employees can use the tools at their convenience.
6. SHARE YOUR WHY
Employees want to know you care. Every benefit you offer deserves a highlight, especially outside of open enrollment, so talk about it. Share your purpose with passion!
The growing conversation around mental health in the workplace will continue to highlight the fact that your company health goes far beyond the balance sheet. Your bottom line starts with your employees’ ability to access the care they need. Let us all advocate for that.
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