By Devin Partida, Editor-in-Chief, ReHack.com
LinkedIn: Devin Partida
LinkedIn: ReHack Magazine
Optimizing Health Savings Account (HSA) utilization helps patients afford care, lightens the billing department’s workload and saves hospitals money. IT professionals can improve usage by making the experience as frictionless as possible. Even simple changes can have a substantial impact.
Optimizing HSA Utilization With Data Analytics
Insurance plans paired with tax-advantaged HSAs should empower patients. In reality, many can’t confidently say what their balance is or what they can spend their funds on. They often underfund or underutilize their accounts as a result, paying more out of pocket than necessary.
Research reveals that almost 60% of patient bad debt comes from the amount insured patients pay after insurance coverage. This can put a strain on medical institutions’ billing departments as well as patients. In response, hospitals are increasingly focused on employing novel strategies to collect these self-pay amounts.
People who experience high friction when trying to spend their funds may be more likely to fail to cover their self-pay amount. High-friction experiences include technical issues when logging into the portal or too much time spent unsuccessfully searching for coverage eligibility.
People in the United States can’t simply ask their provider — their most consistent point of contact — for guidance because they meet for just 13 to 16 minutes on average. Patients often have to dig through online databases or wait on hold for extended periods to find answers. For some, the funds don’t seem worth the trouble. This presents an opportunity for the IT team to step in.
Identifying Opportunities for Targeted Improvement
HSA literacy is foundational for optimizing utilization among patients. These accounts have three tax benefits — tax-deferred interest, tax-deductible contributions and tax-free withdrawals for qualified medical expenses. The IT team should collaborate with patient outreach professionals to produce infographics or reminders about these fundamentals.
Data analytics can help IT departments identify which demographics have less access to in-depth information. Data-driven personalization enables targeted education and recommendations. Eliminating knowledge gaps can encourage more widespread, consistent and effective HSA utilization.
Leveraging vast datasets for predictive analytics is another viable approach. If payers and providers could assess which individuals are at risk of nonpayment, they could deploy intervention strategies early on. Switching from a reactive to a proactive approach could lighten the billing department’s workload.
How Improved HSA Utilization Benefits Providers and Patients
Many people with HSA accounts don’t realize they’re leaving funds on the table, which impacts providers. The Deloitte Center for Health Solutions surveyed executives from health systems with revenue over $500 million in 2024. Many reported experiencing margin pressure in recent years. Hospitals often operate on thin margins, so avoidable losses are unacceptable.
Instead of focusing their efforts on the problem’s symptoms, they should address the root cause with help from the IT department. Optimizing HSA utilization by making digital experiences frictionless could increase enrollment and significantly reduce bad debt, saving patients and providers money.
Integrating Data Analytics and Patient-Facing Tools
Incorporating data analytics into patient portals or mobile health solutions enables real-time insights, information-driven expense tracking and optimal savings strategies. However, there may be technical hurdles, such as a mismatch between legacy and modern systems.
End-user-facing solutions are key. Future-proofing an analytics solution by prioritizing interoperability and scalability will improve integration and empower individuals to make informed decisions about their health care finances.
Improving Patient Outcomes With Optimal Utilization
Creating a resource where patients can find answers to frequently asked questions and personalizing interventions for targeted HSA education is beneficial for everyone involved. Improving account utilization will lead to healthier patients and more profitable hospitals. The IT department should coordinate with patient outreach professionals and the marketing team to make their efforts known and get support.