Health savings accounts (HSAs) are a popular employee benefit, serving as a core component in an estimated 22% of employee benefit plans. Yet, even with 36 million or more accounts covering nearly 72 million individuals, many people continue to miss opportunities to make the most of their HSA. Consider, for example, that more than 7 million HSAs, roughly 18% of all accounts, are unfunded, and another 3.5 million closed last year, according to Devenir. This situation could have been avoided if account holders had a better understanding of the potential for their HSA to help them save money now, or to invest in their future health.
HSAs have the unique ability to support the health and financial goals of employees at all stages of their lives and careers. Unfortunately, lack of knowledge about how their account works and what it can be used for remains high, and is the driving factor behind lack of enrollment and utilization. As HR professionals, you can help employees make the most of their HSA — and reduce confusion and “noise” — by educating them about the unexpected perks of this tax-advantaged account.
