Fewer Than Half of Private Employers Offer HSA Alongside HDHP
It’s like having a PB&J without the bread—doable, but far less palatable. And potentially a little messy.
Yet many employees are choosing their employer’s high deductible health plan (HDHP) without signing up for its counterpart, the health savings account (HSA). That may be because they were never offered one. According to the fourth annual “Guardian Workplace Benefits Study,” only two in five private employers offer an HSA alongside their HDHP.
HSAs allow account holders to set aside pre-tax dollars to cover eligible medical expenses and are the most tax-advantaged way to pay for current and future healthcare costs. HSAs don’t have use-it-or-lose-it limits, meaning account holders can roll unused funds over indefinitely and invest them if they choose.
Since HDHPs often have lower monthly premiums than other plans, a great strategy is to put those monthly premium savings into your HSA and let them grow tax-free until you need them. For employees who are enrolled on an HDHP and are otherwise HSA-eligible, opening and contributing to an HSA is one of the best financial decisions they can make. If not, they miss out on valuable tax breaks, as well as the opportunity to save and invest unused dollars for the future.
But the good news is that, if employees are covered by their employers’ HDHP and are otherwise HSA-eligible, they can open an HSA with whatever provider they choose. Since HSAs are individually-owned accounts, account holders have every right to decide who administers their account, even if their employer doesn’t offer an HSA option.
So HSA-eligible individual always have the ability to open and start contributing to an HSA, regardless of their employer’s benefit offering. HSA-eligible HDHP participants are always able to invest in a happy, healthy future by contributing to their HSAs.
If you’re HSA-eligible and your employee doesn’t offer an HSA, HealthSavings offers an investment-focused solution to help you save money now and prepare for the future. Watch this quick video to learn more about HealthSavings or set up an account here.