Overcoming Common Objections to Health and Wellness Spending Accounts

Health and wellness spending accounts (HSAs and WSAs) are flexible, customizable, and can be a game-changer for employee benefits. But let’s be real—when you suggest these accounts to clients, you might get some pushback. Whether it’s concerns about complexity, costs, or whether employees will even use them, objections are common. The good news is that these worries are easy to address once you break things down.

Let’s walk through some of the most common objections and how you can help clients see the real value of health and wellness spending accounts.

Objection 1: “It’s Too Complicated to Set Up and Administer.”

One of the biggest fears is that these accounts will add a ton of administrative work. Small business owners, in particular, might think they don’t have the time or resources to deal with something that sounds like more paperwork and headaches.

How to Address It:

The setup with myHSA is simple and easy to understand. Our platform is built around the user experience and handles all of the heavy lifting and logistics that burden small businesses when they try to run spending accounts in-house. Claims submissions, processing & payout, reporting, tracking balances and more are all run on our 100% digital platform, so everything is managed online with just a few clicks. The myHSA system is created with full transparency for your clients in a manner that will save them time and resources.

Pro Tip: Using your Advisor Demo site to show clients the ease of being a Plan Admin or making claims as an employee is a great start to putting their mind at east. Walk your clients through the setup steps and show them how smooth it is. If you have happy clients who have already gone through the process, consider sharing their experiences.

Objection 2: “Our Employees Won’t Use It.”

Another common concern is that employees might not see the value or won’t know how to use the account which with some other carriers leads to the company paying for something that is not being used. Employers worry they’ll invest in something that just sits there untouched.

How to Address It:

It’s all about showing employees what’s in it for them. Health and wellness spending accounts give people options that fit their unique needs—whether it’s a new pair of glasses, a gym membership, mental health support, childcare expenses, dental coverage, and more. The flexibility means there’s something for everyone, which leads to higher engagement.

Communication is key here. With clear, easy-to-understand guides and a bit of upfront education (think a quick info session or a handy FAQ), employees will see how they can benefit. Most importantly, clients on the myHSA system are only ever paying for what is actually used by the employee in regards to our spending accounts.

Pro Tip: Use the available myHSA resources to help create a simple communication plan for your clients, including email templates and cheat sheets that explain how employees can make the most of their accounts.

Objection 3: “It’s Too Expensive.”

Cost is always top of mind, especially for small businesses. They might assume that adding a spending account to their benefits package will be pricey, especially if they already have other plans in place.

How to Address It:

The beauty of these accounts is that employers have complete control over the budget. They set the contribution limits, and funds are only spent when employees make claims. Plus, health spending accounts are tax-efficient, making them a cost-effective choice. It’s not about adding a big expense—it’s about offering a valuable benefit without blowing the budget, while lowering small businesses corporate taxes.

Pro Tip: Show clients different contribution scenarios and highlight the potential tax savings. When they see the numbers, they’ll realize it’s more affordable than they thought.

Objection 4: “We’re Happy with Our Current Benefits Plan.”

Some companies feel like their traditional group benefits plan is doing the job just fine, so why bother with something new?

How to Address It:

Think of health and wellness spending accounts as the perfect complement to existing benefits. An HSA can cover out-of-pocket costs that a regular plan might miss with coverage limits. A WSA, on the other hand, adds extra perks like fitness options and personal development courses—things that go beyond medical coverage and enhance employee well-being. It is no secret that small businesses are seeing large increases for their insured benefits renewals. Broaching the conversation of a cost controlled spending account can help mitigate this.

Pro Tip: Help your clients see how these accounts fill in the gaps and make their overall benefits package even more attractive and well-rounded.

Objection 5: “What if Employees Don’t Spend the Money?”

Employers might be concerned that if employees don’t use up all the funds, they’re essentially wasting money. They might not know what happens to unused balances.

How to Address It:

Unused funds don’t have to go to waste, because they aren’t used in the first place.  Employers only reimburse what employees actually spend, so if the employee does not use their entire allocated balance, the employer does not pay it out!  Employers can also choose to utilize carryover and reserve options for remaining balances. This flexibility lets them decide what works best for their financial situation.

Pro Tip: Explain the different carryover and reserve options available, so clients can pick the setup that aligns with their budget and goals.

Turning Objections into Opportunities

It’s natural for clients to have concerns when considering something new, but health and wellness spending accounts are built to be simple, flexible, and valuable. By addressing these common objections in a straightforward way, you can help your clients feel more confident and excited about offering these benefits.