How do I know if I funded too much?

If most of your employees have a significant amount of healthcare account funding from the previous year rolling over into the next, they may be receiving more funding than they need. In the first plan year, this isn’t necessarily a bad thing because there is more risk in the first year, and allocating more funds may actually help a majority of your employees feel the positive effects of building a balance in their HSA. . Still, it’s important to examine spending patterns to determine the reason for the above-average rollover.

You may be contributing too much, but it’s also possible that members have had an unusually good health year and may experience the opposite in the coming plan year. Remember that you don’t want to penalize your employees for cutting down on their healthcare spending by reducing funding. Your benefits advisor and your insurer can help you assess the relevant factors to determine whether the phenomenon is an anomaly, if it appears to be the result of preventive care and alternative treatment, or if you’ve overestimated your contribution levels. They should help you adjust accordingly.

Coaches' Takeaway

Allocating more funds may actually help a majority of your employees feel the positive effects of the” use it or keep it” principle that is so integral to behavioral change. Your Benefits Advisor and your insurer can help you identify the underlying trends and provide you with insights to help you make the best decisions as you move forward.

Tools & Resources

CDHPCoach’s Storage Facility, where the Coach has organized and compiled a vast amount of tools and resources for you to access.


Housed here are key components and information within the book, Bend the Healthcare Trend which was the impetus behind the CDHPCoach.