Employee eligibility 

When it comes to designing an HSA program at your company, there are a few things you need to keep in mind to stay compliant. To start with, you need to determine which employees are eligible to participate in an HSA. First, employees need to be covered by an HSA-eligible health plan, otherwise known as a high-deductible health plan (HDHP). They can’t be covered by any other health plan that would disqualify them from an HSA, such as a spouse’s plan or a medical flexible spending account (FSA). 

Also, employees can’t be enrolled in Medicare or be claimed as a dependent on someone else’s tax return.

Contribution rules for employers

There are comparability rules when it comes to an employer contributing to an HSA, but only if the employer is not running the program through a . If they’re running an HSA program through a cafeteria plan, contributions are subject to non-discrimination testing and  comparability rules do not apply. Comparability rules for programs not run through a cafeteria plan means employers who contribute to an employee’s HSA must make comparable contributions (contributions that are the same amount or same percentage of the deductible for the HDHP) to all comparable participating employees’ HSAs.

Notifying your employees about HSA rules

What HSA rules should you communicate to your employees? You’ll want to notify them about contribution limits for a family or individual plan, why they need to be enrolled in an HDHP, and the wide array of HSA eligible expenses.

But before you get into the details of HSA rules, it’s important to tell your employees about the savings opportunities and additional benefits of an HSA. Benefits rules can be overwhelming for employees, so if they don’t understand what they can get out of an HSA, they will probably be less inclined to open an HSA account. 

“I always recommend that you really talk about the benefits of the HSA program [with employees],” said Cook on our Benefits podcast. “Help them understand the HSA better and then slowly weave in the rules and regulations the IRS requires.”

Contribution rules for employees

As we mentioned above, current HSA contribution limits are one of the top rules you need to communicate to employees with an HSA. If an employee does go over the HSA contribution limit, they will have to either withdraw their excess contribution before tax filing to avoid penalties, or include whatever amount is over-contributed to the account as other income and receive a 10% penalty.

Providing your employees with a simple and personalized HSA experience can help prevent contribution mistakes from happening. For example, ŃÇÖŢÉ«°É offers HSA holders an online account with an expense dashboard that manages and tracks their HSA funds throughout the year.

ERISA and HSAs 

The was established with the purpose of protecting the rights and interests of workers who participate in employer-sponsored benefits plans. With employer-sponsored health plans, there’s fiduciary oversight. But fiduciary oversight does not exist with HSAs, because these accounts are owned by the employee. 

If an HSA is subject to ERISA, employers face many compliance obstacles. An employers have to:

• File Form 5500s.
• Provide a summary plan description and plan documents.
• Follow DOL claims procedures.
• Provide COBRA continuation coverage.

So, what actions should employers avoid to keep their employees’ ? 

• Controlling how much an employee contributes to their HSA.
• Not letting employees move their funds to another HSA.
• Controlling how employees use their HSA funds.
• Influencing employees on HSA investment decisions.
• Say that the HSA is subject to ERISA.
• Receive any form of compensation in relation to the HSA

Beyond compliance, the right HSA partner can significantly simplify administration and improve the employee experience. ŃÇÖŢÉ«°É’s HSA solution offers modern tools for easy onboarding, automated contributions, and a seamless digital experience, while providing to help employees better understand and use their accounts. For HR teams, this means less manual work, stronger engagement, and greater confidence that their HSA program is supporting both financial wellness and regulatory requirements.

Don’t forget to to learn more about HSA compliance and program design! 

This blog post was most recently updated in June 2026.Ěý

The information in this blog post is for educational purposes only. It is not legal or tax advice. For legal or tax advice, you should consult your own legal counsel, tax and investment advisers. 

ŃÇÖŢÉ«°É receives compensation from some of the merchants identified in its blog posts. By linking to these products, ŃÇÖŢÉ«°É is not endorsing these products.

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Here are the top 10 employee benefits trends defining 2026, and what they mean for your organization. And don’t forget to check out our Benefits Buzz podcast episode below to learn more about these top trends.

1. Benefits that fit every employee

One-size-fits-all benefits are officially outdated. In 2026, personalization is the standard. Employers are building customizable benefit packages that adapt to employees’ unique life stages, family situations, and financial goals.

Using data insights, organizations can tailor offerings for different employee segments, making benefits more relevant, valuable, and engaging.

2. Wellness that covers mind, body, and wallet

Wellness in 2026 goes far beyond physical health. Leading employers are combining physical, mental, and financial wellness into a single, connected experience.

From mental health tools and virtual therapy to financial coaching and wellness incentives, companies are helping employees thrive in every area of life.

3. Financial confidence as a core benefit

Financial stress is one of the biggest drivers of burnout and disengagement. That’s why financial wellness is now a foundational benefit.

Employers are offering financial education, budgeting tools, and one-on-one coaching, while making it easier for employees to understand and use health savings accounts (HSAs), and flexible spending accounts (FSAs).

4. Smarter benefits through AI and data

AI is changing benefits management in 2026. Employers are using AI to recommend personalized benefits, automate routine tasks, and deliver more intuitive experiences.

Advanced analytics also help HR teams identify trends, measure impact, and continuously improve benefit programs.

5. Proactive health for long-term wellness

Preventive care is taking center stage. Organizations are incentivizing screenings, wellness visits, and early health interventions to support long-term outcomes.

Digital tools now help employees manage chronic conditions with personalized guidance, improving health while reducing overall healthcare costs.

6. Retirement and longevity reimagined

As people live and work longer, retirement planning is being redefined. Employers are introducing flexible retirement pathways, enhanced employer-matched savings plans, and tools designed for longer lifespans and evolving needs.

7. One platform, one experience

Employees want simplicity and employers need efficiency. In 2026, benefits leaders are consolidating programs into a single, easy-to-navigate platform.

Unified experiences improve transparency for employees and reduce complexity for HR teams, creating smoother benefits administration across the organization.

8. Managing healthcare costs wisely

Healthcare affordability remains a top concern. Employers are adopting transparency tools that allow employees to compare prices and providers, empowering smarter healthcare decisions.

Many organizations are also expanding value-based care and virtual-first healthcare options to improve outcomes while controlling costs.

9. Support for families and caregivers

Family and caregiver support is no longer optional—it’s essential. Employers are expanding childcare, eldercare, and family leave benefits to reduce stress and help employees balance work and life.

In 2026, organizations can also take advantage of the increased dependent care FSA limit of $7,500 per household, making dependent care benefits even more impactful.

10. Flexibility for the hybrid workforce

The hybrid workforce is here to stay. Employers are supporting remote and in-office employees with flexible schedules, virtual collaboration tools, and equitable workplace policies, ensuring every employee feels supported, connected, and valued.

Stay ahead in 2026 with ŃÇÖŢÉ«°É

In 2026, employees expect flexibility, personalization, and seamless digital experiences. And ŃÇÖŢÉ«°É delivers.

Our innovative technology streamlines benefits administration, connects data across platforms, and provides AI-powered insights that help employers design smarter, more personalized benefits strategies.

With ŃÇÖŢÉ«°É, you can empower your workforce, increase engagement, and strengthen your competitive edge, today and into the future.

The information in this blog post is for educational purposes only. It is not legal, tax or investment advice. For legal, tax or investment advice, you should consult your own legal counsel, tax and investment advisers. 

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But today, how systems connect matters just as much as what they offer. Integration experience is quickly becoming a deciding factor for not only technical teams, but business outcomes as well.

The integration gap is still holding teams back

Despite major advancements in HR and benefits technology, many systems still don’t work as smoothly as they should.

According to a , only 21% of organizations say their benefits applications always meet business needs. Meanwhile, 79% report gaps, with integration challenges as one of the top concerns.

Integration challenges can result in:

• Delayed launches and missed deadlines
• Heavy reliance on support teams
• Manual workarounds that slow innovation
• Limited ability to scale or customize

From onboarding new partners to rolling out new features, when integrations are difficult everything else becomes harder. And in the benefits world where speed matters, those delays can cost more than time.

Why integration experience matters more than ever

As platforms become more connected, expectations have changed.

Teams don’t just want access to APIs. They expect:

• Speed – The ability to launch quickly without long onboarding cycles
• Autonomy – The freedom to build and test independently
• Flexibility – The ability to adapt integrations as needs evolve
• Clarity – Clear documentation and predictable processes

Integration isn’t just a technical step. It’s part of the overall product experience. And when it works well, teams move faster and innovate more freely. But when it doesn’t, it becomes a bottleneck.

What modern integration should look like

A modern integration experience can make the difference between assembling something with a clear, step-by-step guide versus piecing it together from scattered instructions.

At its best, it should feel:

• Unified – Everything lives in one place, not across multiple systems
• Intuitive – Easy to understand without the need for technical support 
• Self-service – Teams can build, test, and launch on their own timeline
• Scalable – Built once, then extended as needs grow

When those pieces come together, integration stops being a hurdle and starts becoming an advantage.

A shift toward developer-first platforms

Platforms should be designed with the builder in mind, providing an experience that fully supports how teams actually work.

That means:

• Real-time access to APIs and documentation
• Built-in testing environments
• Consistent standards across products
• Tools that reduce reliance on support teams

The goal is to remove friction so teams can focus on building, not troubleshooting.

Introducing a new way to integrate with ŃÇÖŢÉ«°É

ŃÇÖŢÉ«°É has launched a new Developer Center: a centralized platform designed to simplify how partners build and integrate.

Within our new developer experience, teams can build integrations for onboarding, account data, and transaction workflows—embedding ŃÇÖŢÉ«°É capabilities directly into their platforms.

• Access APIs, documentation, and testing tools in one place
• Explore endpoints and build integrations independently
• Test in real time without delays
• Manage integrations with greater visibility and control

The experience is built to support three key outcomes:

1. Launch faster

Everything needed to build and go live is in one place, helping reduce onboarding time and accelerate time-to-market. With built-in AI-assisted development, teams can generate integration-ready code snippets aligned to ŃÇÖŢÉ«°É APIs, moving faster from exploration to implementation.

2. Scale smarter

With consistent standards and modular APIs, integrations can grow alongside your business without starting from scratch.

3. Build without barriers

Self-service tools and clear documentation give teams the flexibility to work independently and move at their own pace.

Why this matters for your business

A better integration experience doesn’t just provide a technical improvement. It’s a business advantage as well.

It can help you:

• Reduce time to revenue by launching faster
• Lower costs by minimizing support dependencies
• Stay aligned to your roadmap without delays
• Create more flexible, scalable solutions for your customers

Integration has become a critical part of how platforms deliver value.

And as expectations continue to rise, the organizations that invest in better integration experiences will likely be the ones that move faster, scale more effectively, and stay ahead.

Ready to explore our Developer Center ? .Ěý

Copyright ©2026 ŃÇÖŢÉ«°É. All rights reserved. The information in this document is subject to change without notice. 

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This is the first part of our benefits personalization blog series, where we’ll delve deeper into how personalized approaches can transform employee benefits and enhance overall program effectiveness.

The complexity of traditional benefits

Many employees and HR teams struggle with traditional benefits due to their inherent complexity. Common challenges include:

• Confusing plan options and eligibility rules – Employees may have trouble determining which plans best suit their needs, leading to lower participation rates or suboptimal choices.
• Lack of clear communication – Benefits jargon and lengthy documentation can create barriers to understanding, leaving employees unsure of what’s available to them.
• Accessing and managing benefits – Complex systems and multiple platforms make it challenging for employees to enroll, track, and modify their benefits.
• Misalignment between employee needs and available offerings – Without a simplified approach, employees may find that their benefits do not align with their unique circumstances, reducing overall satisfaction.

The value of simplicity

A simplified benefits approach enhances the experience for both employees and HR teams. Key advantages include:

• Higher participation rates – When employees understand their benefits, they are more likely to enroll and utilize them effectively.
• Greater accessibility and ease of understanding – Straightforward explanations, user-friendly platforms, and decision-support tools help employees navigate their options more effectively.
• Reduced administrative burdens for HR teams – A streamlined process can lead to  fewer questions, less paperwork, and more time for HR professionals to focus on strategic initiatives.

Moving toward a simplified future

Employers and HR leaders can take steps to simplify benefits by leveraging technology, improving communication strategies, and offering personalized guidance. By making benefits easier to understand and manage, organizations can create greater employee satisfaction, improve retention, and enhance workplace productivity.

Investing in a clear, user-friendly approach that helps  employees better utilize  their benefits, leading to a more engaged and empowered workforce.

Take the next step with ŃÇÖŢÉ«°É

ŃÇÖŢÉ«°É offers benefits platforms that simplify complex processes and enhance usability, enabling employees to access and manage their benefits effortlessly. ŃÇÖŢÉ«°É’s BeneFITwise Premier transforms employee benefits into a flexible, personalized experience, leveraging analytics and individual health claims to empower employees in making informed decisions. ŃÇÖŢÉ«°É’s AI-driven Benefit Assistant provides tailored recommendations, while seamless payroll and HR system integration reduces administrative burdens. With dedicated support teams, 24/7 service, and data-driven insights, ŃÇÖŢÉ«°É helps employers create engaging, future-ready benefits programs that drive satisfaction and retention. 

to discover how you can create a smarter, more effective benefits strategy that meets the evolving needs of your workforce.Ěý

The information in this blog post is for educational purposes only. It is not legal, tax or investment advice. For legal, tax or investment advice, you should consult your own legal counsel, tax and investment advisers. 

ŃÇÖŢÉ«°É receives compensation from some of the merchants identified in its blog posts. By linking to these products, ŃÇÖŢÉ«°É is not endorsing these products. 

The post Personalize and simplify employee benefits: The key to better engagement and satisfaction appeared first on ŃÇÖŢÉ«°É..

Check out our other compliance blog posts on HSAs, HRAs, LSAs, and voluntary benefits.

Employee eligibility

Employee eligibility for FSAs typically requires enrollment during your company’s open enrollment period, or at the time of hire or a qualifying event. Employees must be eligible for your company’s health insurance plan to participate in an FSA. The four common types of FSAs are:

Medical FSA: Allows employees to use pre-tax dollars to cover eligible medical expenses not covered by insurance, such as copays, deductibles, and certain over-the-counter medications.

Limited medical FSA: Similar to a medical FSA, but can be paired with high-deductible health plans (HDHPs) and health savings accounts (HSAs), covering dental and vision expenses.

Combination FSA: A limited FSA that converts into a medical FSA once the IRS deductible is met.

Dependent care FSA: Lets employees use pre-tax funds for qualified dependent care expenses, including daycare, preschool, and after-school care. Only employees with a legitimate tax-dependent status can use FSAs to cover dependent care expenses.

Contribution rules

on the amount that can be contributed to an employee’s FSA. The 2026 medical FSA contribution limit (including limited and combination FSAs) is $3,400 per year. While you have the option to contribute to your employees’ FSAs, it is not mandatory. The funds your employees choose to contribute will be deducted from their paychecks before tax deductions and then placed into their FSA.

The use-it-or-lose-it rule

The FSA use-or-lose rule means that any funds remaining in an employee’s FSA at the end of the plan year are forfeited. In other words, they lose those funds if they don’t spend the money they contributed to their FSA on eligible expenses by the end of the plan year. However, there are two exceptions to this rule:

• Carryover: You can offer your employees a carryover option, allowing them to carry over a limited amount of unused funds (up to $680 per year in 2026) into the next plan year.
• Grace period: Or you can include a grace period (usually up to 2 ½ months after the plan year ends) during which participants can use the remaining funds for eligible expenses.

FSA eligible expenses

FSA eligible expenses vary depending on the type of FSA. Here are some common categories of eligible expenses for different types of FSAs:

Medical FSA:

• Doctor visits
• Prescription medications
• Dental care
• Vision care
• Over-the-counter medical supplies
• Certain medical equipment

Limited medical FSA:

• Eligible dental expenses
• Eligible vision expenses
• Preventative care services

Dependent care FSA:

• Child care
• Day camp, not primarily for educational purposes
• Before or after school programs
• Babysitting
• Adult day care center
• Elder care

Discover more about how :

FSA fund purchases

When your employees spend their FSA funds, they should follow this general guideline:

Use a benefits card: Some FSAs offer a benefits card that can be used for eligible purchases directly at the point of sale. Swipe the card at the point of purchase, and the funds will be deducted from the FSA account.

Save receipts for FSA-eligible purchases: Documentation is crucial for substantiating expenses, especially in case of an audit or verification. Even some benefits card purchases will require receipts for substantiation. 

Submit claims: For purchases made out-of-pocket, participants will most likely need to submit a claim for reimbursement. Depending on the FSA provider, this might involve filling out a claim form and providing documentation.

Designing an FSA

Here are some important considerations when designing an FSA at your company:

• Conduct surveys or gather feedback to understand the specific healthcare and dependent care needs of your employees. 
• Consider offering different types of FSAs to provide employees with flexibility based on their circumstances.
• Decide whether to include a carryover or grace period. Keep in mind this can improve employees’ willingness to participate in an FSA.
• Consider providing a benefits card for easy point-of-sale transactions.
• Clearly communicate the FSA plan details, including eligibility criteria, contribution limits, and a comprehensive list of eligible expenses. Share educational materials with your employees to help them understand how to use and maximize their FSA.

Learn more about FSAs and other employee benefits by subscribing to our blog!

The information in this blog post is for educational purposes only. It is not legal or tax advice. For legal or tax advice, you should consult your own legal counsel, tax and investment advisers. 

ŃÇÖŢÉ«°É receives compensation from some of the merchants identified in its blog posts. By linking to these products, ŃÇÖŢÉ«°É is not endorsing these products.

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If you’re new to participating in an LSA, you may have questions about LSA definitions and rules. Here is a list of the top things a first-time LSA participant should be aware of in order to take full advantage of their LSA.

And don’t forget to check out our other first-timer series blog posts on:

• Health plans and employee benefits
• HSAs, FSAs, and voluntary benefits

What is a lifestyle spending account (LSA)?

An LSA is an employer-funded, post-tax spending account, with eligible expenses and plan details customized by your employer. An LSA is intended to promote healthy habits and overall well-being. 

How an LSA works

Since lifestyle spending accounts are entirely funded by your employer, you do not make an individual contribution to the account. Your employer decides the contribution amount each year. They also determine who is eligible to participate in the LSA, the contribution schedule, eligible expenses, and any rules around plan functionality. Your taxable income will increase if you spend funds from your LSA, but any unused funds will not be taxed.

The benefits of an LSA

Your overall well-being should always be top of mind, but we often put our wellness needs aside because of financial or circumstantial reasons. A lifestyle spending account helps you put your wellness needs first by allowing you to save on a wide variety of physical, emotional, and financial wellness needs. An LSA provides value no matter what your interests or needs are, because of the wide variety of eligible expenses offered. 

What are the eligible expenses?

Unlike HSAs and FSAs that have specific IRS eligible expense requirements, your employer decides which eligible expenses to cover. Typically, your employer will customize the LSA eligible expense list to best fit their employees’ needs and lifestyles. Employees can offer eligible expenses that will encourage healthy habits, reduce financial stress, and promote learning opportunities.Ěý

Some of the most common physical, emotional, and financial wellness eligible expenses are:

• Exercise equipment
• Gym memberships
• Fitness classes
• Student loan reimbursement
• Financial advisor/planning services
• Counseling services

How does reimbursement work?

With an LSA, your employer decides if it’s a reimbursement account. If it is, you’ll have to submit a claim for reimbursement through an online portal or mobile app after making a purchase. If it’s not a reimbursement account, your employer will provide you with a funded debit card that you’ll use for purchases.

Take a look at our infographic below to see more LSA eligible expenses:

The information in this blog post is for educational purposes only. It is not legal or tax advice. For legal or tax advice, you should consult your own legal counsel, tax and investment advisers. 

ŃÇÖŢÉ«°É receives compensation from some of the merchants identified in its blog posts. By linking to these products, ŃÇÖŢÉ«°É is not endorsing these products.

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What is a medical flexible spending account (FSA)?

A medical FSA is a tax-advantaged employee benefit that gives participants the opportunity to save on out-of-pocket medical, dental, and vision eligible expenses. They are employer-owned accounts. You can enroll in a medical FSA during open enrollment, when you’re hired at a new job, or when you experience a status change.

How a medical FSA works

After you’ve enrolled in a medical FSA through your employer, you then choose how much to contribute to your FSA. Your annual election amount comes out of your paycheck, and these pre-tax dollars are deposited directly into your FSA to be used on eligible expenses. The 2026 contribution limit for medical FSAs is $3,400 per year.

How to save with a medical FSA

Medical FSAs offer a great opportunity to save on general-purpose health expenses such as prescription drugs, insurance copayments and deductibles, and medical devices. Whether you have planned healthcare needs coming up this year, or you want to be prepared for unexpected expenses, using tax-free FSA funds will help you lower your healthcare costs. 

And since your FSA contribution is taken out of your paycheck pre-tax, participating in a medical FSA decreases your taxable income, as well. Not only will you have money set aside for medical, dental, and vision expenses, you’ll also be able to take home more money as well! Check out our FSA calculator to see how much you can save with your medical FSA.

What are the eligible expenses?

You might be surprised by the variety of products and services you can spend your medical FSA dollars on. If you have a ŃÇÖŢÉ«°É benefits card, all you have to do is swipe your card to have eligible expenses approved. Just make sure you’re using your card somewhere that offers an Inventory Information Approval System (IIAS) or meets the IRS’ 90 percent rule.

Some of the most popular medical FSA eligible expenses are:

• Over-the-counter medication
• Prescription drugs
• Doctor copays
• Physical therapy
• Chiropractor
• Feminine hygiene products
• Vision correction procedures
• Dental procedures and services

How does reimbursement work?

If you choose to pay out-of-pocket for an eligible expense or if the claim is not automatically approved when you swipe your benefits card, ŃÇÖŢÉ«°É participants will need to submit a reimbursement claim through or using . The IRS requires you to submit documentation of the FSA claim to prove it was an eligible expense. This documentation can typically be sent through an online account, mobile app, fax, or mail. Once the claim is approved, you’ll receive reimbursement through your benefits card, direct deposit, or check.

A step-by-step guide through claim reimbursement can be found here.

What is the use-or-lose rule?

What happens with any unused medical FSA funds you have at the end of the year? The IRS use-or-lose rule states that you must spend your FSA funds within the FSA’s plan year. That means, if you don’t spend most or all of your FSA funds by the end of the year (depending on your FSA’s individual plan rules), those unused funds are forfeited to the plan. So, if you’re on the more common January-to-December plan year, mark December on your calendar as the month to spend down your remaining FSA funds.

However, the IRS does allow employers the option to offer an FSA carryover option to their employees. An FSA carryover allows you to carry over medical FSA funds from one plan year to the next, meaning you won’t have to worry about spending all of their FSA funds before the end of the year. In fact, if your employer offered the maximum allowed $680 carryover from a 2026 plan, you could carry up to $680 from 2026 to 2027.

Do you want to learn even more about medical FSAs? Check out our podcast episode below!

This blog post was most recently updated in March 2026.

The information in this blog post is for educational purposes only. It is not legal or tax advice. For legal or tax advice, you should consult your own legal counsel, tax and investment advisers. 

ŃÇÖŢÉ«°É receives compensation from some of the merchants identified in its blog posts. By linking to these products, ŃÇÖŢÉ«°É is not endorsing these products.

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What began as a treatment for diabetes is now widely used for weight management, driving unprecedented demand from employees. For employers, especially those with self-funded plans, this surge has created a difficult reality: GLP-1s are expensive, utilization is hard to predict, and traditional benefit funding models weren’t designed to absorb open-ended drug costs.

Eliminating coverage entirely is rarely a realistic option for competitive employers. Employees increasingly expect and rely on this access, making a supportive benefits package essential for attracting and retaining top talent.

So how can employers offer GLP-1 access with predictable costs?

Why GLP-1s break the traditional benefits model

GLP-1 medications don’t behave like most pharmacy benefits.

• Costs can exceed
• Utilization varies widely across populations
  
• Long-term treatment plans vary person-to-person, driving complexity in cost-projections
  
• Spend is directly embedded into premiums and future renewals
  

As of December 2025, , accelerating the problem. When GLP-1s are embedded in the medical or pharmacy plan, employers are exposed to utilization-driven cost increases with little ability to intervene.

This puts HR and benefits leaders in a tough position—balancing employee expectations against budget certainty and long-term sustainability.

The tradeoffs employers are being forced to make

Today, many employers feel boxed into a difficult choice that pits employee access against budget uncertainty. They are being forced to take sides: what’s best for the employees versus what’s realistic with today’s benefits cost and budgeting. This leaves them with few options, none of which fully align with managing risk and supporting employees:

1. Cover GLP-1s fully and absorb unpredictable, escalating costs that create significant strain on budget forecasts.
   
2. Eliminate coverage and shift costs to employees through funding mechanisms like HSAs or FSAs, risking employee dissatisfaction, trust erosion, and affordability issues without solving for the employer’s long-term financial exposure.
   

Many employers are forced into a decision by their health plan, which may suddenly cease coverage of GLP-1s and compel the employers to switch providers or find an alternative solution.

Bringing structure to GLP-1 coverage with a defined approach

An emerging strategy among employers is to carve GLP-1s out of the core medical plan and offer access through a defined, employer-funded health reimbursement arrangement (HRA).

Instead of open-ended coverage, employers establish clear parameters around how GLP-1 benefits are funded and administered.

This approach allows employers to:

• Define eligibility for GLP-1 reimbursement
  
• Set a monthly or quarterly funding amount
  
• Establish reimbursement rules aligned with plan goals
  
• Pay only for what is actually used, without upfront funding
  

The result is a benefit that offers access while restoring employer control.

Why a defined GLP-1 HRA model works

Predictable spend through defined contributions

A defined HRA replaces utilization-driven exposure with a fixed, budgetable contribution. Finance teams can model costs, HR can plan with confidence, and employers avoid surprise premium impacts tied to GLP-1 usage.

Access without embedding risk in the medical plan

Employees still have access to GLP-1 medications, but costs are no longer embedded in medical or pharmacy premiums. This reduces the risk that GLP-1 utilization drives future rate increases.

Better alignment with employer responsibilities

Unlike HSA-only approaches that shift responsibility to employees, HRAs are designed for employer governance, compliance, and cost containment. Employers maintain control over funding, eligibility, and benefit design.

What this means for employees

From an employee perspective, a defined GLP-1 HRA can still deliver meaningful value:

• Continued access to GLP-1 medications
  
• Choice in where and how prescriptions are filled
  
• A clear, employer-sponsored reimbursement experience
  
• Support while reducing out-of-pocket costs
  

When designed thoughtfully, this approach can preserve access while setting realistic boundaries.

What employers should look for in a GLP-1 HRA strategy

For this defined HRA approach to work, employers must prioritize factors that deliver both fiscal certainty and a clear, supportive experience for their employees. The strategic elements fall into two critical categories:

Employer priorities (cost control and governance)

• Predictable, capped funding: Establishing clear, defensible funding limits that finance teams can reliably model, moving GLP-1 costs from an unpredictable liability to a fixed, budgetable contribution.
• Clear compliance and governance: Ensuring the design has built-in controls for compliance, eligibility standards, and cost containment.
• Administrative flexibility: A solution that minimizes disruption to existing medical and pharmacy plans and is flexible enough to implement outside the typical annual renewal cycle.

Consumer priorities (access and experience)

• Continued access: The plan’s design must preserve employee access to GLP-1 medications while setting realistic, sustainable boundaries.
• Clear, simple reimbursement: Utilizing a “reimbursement-first” design that is straightforward and easy for employees to understand, reducing confusion and maximizing proper utilization.
• Transparent communication: A strategic employee communication plan is vital to maintain trust, ensure transparency, and clearly educate employees on eligibility and the reimbursement process.

The goal isn’t novelty. It’s sustainability.

The information in this blog post is for educational purposes only. It is not legal or tax advice. For legal or tax advice, you should consult your own counsel.

Copyright ©2026 ŃÇÖŢÉ«°É. All rights reserved. The information in this document is subject to change without notice.

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Despite their powerful benefits—including triple-tax advantages, long-term savings potential, and investment opportunities—many women hesitate to invest their HSA funds. Whether due to risk concerns, misconceptions, or competing financial priorities, this hesitation can lead to missed opportunities for financial security—especially in retirement.

This Women’s History Month, let’s break down why investing HSA funds is a smart move for women and tackle common misconceptions that may be holding them back.

What are some common misconceptions about HSA investments?

1. “I should only use my HSA for immediate medical expenses.”

Many women think of an HSA as a spending account rather than a long-term investment tool. While HSAs can cover current medical costs, they are even more valuable when used as a tax-free investment vehicle for future healthcare expenses, especially in retirement.

2. “Investing is too risky—I don’t want to lose my healthcare savings.”

It’s understandable to be cautious with healthcare dollars. However, HSAs offer flexible investment options, ranging from conservative choices like . You can start small and adjust your investments over time.

3. “I need to keep my HSA funds liquid in case of an emergency.”

Unlike other savings accounts, HSA funds roll over every year—there’s no deadline to use them. Plus, you can pay for medical expenses out-of-pocket now and reimburse yourself later—even years down the road—once your investments have grown.

4. “I don’t have enough money to contribute and invest.”

Many women prioritize family finances, retirement, or debt repayment over investing their HSA funds. But some HSA providers allow investing with as little as $1,000 in cash reserves, making it more accessible than many realize.

5. “HSAs are too complicated to manage.”

While HSAs do have some unique rules, their tax advantages and investment potential outweigh the complexity. Many providers offer easy-to-use investment platforms and guidance, making investing more approachable.

Why should women invest their HSA funds?

1. HSAs provide a safety net for retirement

, meaning they will likely face higher lifetime medical expenses. HSAs can serve as a dedicated healthcare fund in retirement, covering costs like Medicare premiums, long-term care, and out-of-pocket expenses.

2. Investing helps maximize growth

When left in cash, HSA funds don’t grow beyond the initial contribution. But investing allows for compounding growth over time. Even small, consistent investments can turn into a substantial tax-free healthcare fund.

3. HSAs offer unmatched tax benefits

HSAs provide a triple-tax advantage:

• Contributions are tax-deductible, reducing taxable income.
• Growth is tax-free when invested.
• Withdrawals for qualified medical expenses remain tax-free.

No other investment account—not even a 401(k) or IRA—offers these same benefits, making HSAs a powerful tool for building wealth.

How to boost confidence in HSA investing

1. Start small and learn the basics

Many HSA providers offer automated investing and educational resources. Starting with a small percentage of HSA funds and gradually increasing investments can help women build confidence over time.

2. Shift from a spending to a saving mindset

Many women excel at budgeting and saving but may not think of HSAs as an investment tool. Viewing an HSA as a long-term financial asset rather than a short-term spending account can lead to smarter money decisions.

3. Take advantage of employer contributions

Some employers offer HSA contributions, which provide an instant boost to savings. Using this “free money” can help build an investment base faster without extra out-of-pocket contributions.

4. Seek financial education and support

Confidence grows with knowledge. Employers, financial advisors, and online resources can help women understand investment risks, fund choices, and long-term benefits. Joining financial communities or consulting an advisor can also make a big difference.

This Women’s History Month, take a moment to ask: Are you making the most of your HSA? It’s time to start investing and let your savings work for you. Check out our Benefits Buzz podcast episode below to hear HSA savings and investment stories!

The information in this blog post is for educational purposes only. It is not legal, tax or investment advice. For legal, tax or investment advice, you should consult your own legal counsel, tax and investment advisers. 

ŃÇÖŢÉ«°É receives compensation from some of the merchants identified in its blog posts. By linking to these products, ŃÇÖŢÉ«°É is not endorsing these products. 

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If you’ve ever been told you need one, or you’re wondering when it’s required, this guide will explain what an LMN is, why it’s important, and how to obtain one.

What is a letter of medical necessity?

A is a document written by a licensed healthcare provider that verifies a specific treatment, service, or product is medically necessary for a patient’s health. It’s typically required when an expense isn’t automatically deemed eligible under but can be considered eligible with a doctor’s confirmation.

In simple terms, an LMN serves as proof that a treatment or item isn’t just for general wellness—it’s essential for managing a diagnosed medical condition.

When do you need a letter of medical necessity?

Not all healthcare expenses require an LMN, but you’ll need one for certain treatments, services, or items that are on the IRS’s “maybe” list—expenses that could be eligible if prescribed for a medical condition rather than for general health or personal preference.

Here are some common examples of expenses that often require an LMN:

• Massage therapy – Covered if prescribed to treat a medical condition like chronic pain, not just for relaxation.
• Nutritional counseling or special diets – Eligible if required for a medical condition like diabetes or celiac disease.
• Gym memberships or exercise programs – Covered only if prescribed for a medical reason, such as cardiac rehabilitation or physical therapy.
• Orthopedic shoes or inserts – May require an LMN to confirm they are needed for a foot or joint condition.
• Weight loss programs – Eligible if prescribed by a doctor for a condition like obesity, hypertension, or diabetes.
• Alternative therapies (acupuncture, chiropractic care, etc.) – Often eligible but may require an LMN depending on the condition being treated.

How to obtain a letter of medical necessity

If you need an LMN, :

1. Consult your healthcare provider – Ask your doctor, specialist, or other licensed medical professional to write the letter. They must clearly state why the treatment, service, or item is medically necessary for your condition.
2. Ensure it includes key information – An LMN should include:
   • Your name and diagnosis
   • The recommended treatment, service, or item
   • A statement explaining why it’s medically necessary
   • The provider’s name, credentials, and signature
   • The date of issuance
3. Submit it to your HSA, FSA, or HRA administrator – Before making a purchase, check with your account provider to see if an LMN is required. If so, submit it as part of your reimbursement request or claims process.

How long is an LMN valid?

Most LMNs are valid for one year, though some plans may require renewal sooner. If you need ongoing treatment, check with your provider to ensure you have an up-to-date LMN each year.

Want to learn more about how to make the most of your HSA or FSA? Subscribe to our blog for the latest tips on navigating your benefits! Simply hit the “Subscribe” button above or submit your email address in the form below to subscribe to our blog.

The information in this blog post is for educational purposes only. It is not legal, tax or investment advice. For legal, tax or investment advice, you should consult your own legal counsel, tax and investment advisers. 

ŃÇÖŢÉ«°É receives compensation from some of the merchants identified in its blog posts. By linking to these products, ŃÇÖŢÉ«°É is not endorsing these products. 

The post What is a letter of medical necessity and when do you need one? appeared first on ŃÇÖŢÉ«°É..