By: Dr. Bernie Saks
President and CEO at ful.
When the Health Savings Account (HSA) broke onto the healthcare scene in 2003, it provided plan members with a way to invest their income into a tax-free savings account for qualified health expenses.1 And these qualified expenses can range from vision, dental, hospital visits, prescriptions, deductibles, copays, and more.
However, the real allure of the HSA isn’t just that it allows employees to save for their long-term or retirement health, but that it can lower their health spend immediately.
The magic really happens by pairing a qualified High Deductible Health Plan (HDHP) with an HSA, correctly. The affordability of an HDHP allows employers and members to funnel their saved “premium” dollars into members’ HSAs.2 Done correctly, employers and plan members can, for less than a traditional insurance premium, invest their health coverage spend in the member’s HSA, instead of forfeiting it all in annual premiums to insurance companies every year. The result is improved access to care and plan members who are empowered to engage in their health and financial well-being.
What trends are we seeing in Health Savings Accounts? Well, in 2022, the American workforce hit the $100 billion mark in their total HSA assets across over 30 million accounts. And, in the face of rising premiums and insurance renewal fees, this growth is only accelerating. Between 2023 and 2024, it’s estimated that HSA assets will increase by almost another $20 billion.3
What does the growth of HSAs say about healthcare in the workforce? Both employees and employers are eager for a savings solution that offers more customizability and control, better dollar value, and a safety net against unsustainably rising costs.
Ready to see how ful. can maximize your health plan benefit using HSAs for your clients?
Sources
1https://www.plansponsor.com/mega-trends-emerged-drive-growth-hsas/
2https://www.investopedia.com/terms/h/hsa.asp
3https://www.devenir.com/hsa-assets-hit-100-billion-milestone/