Consumers Primed for HSA Education
Published on November 6th, 2020
During a year marked by a global health crisis, the consumer-directed healthcare (CDH) industry has seen both positives and negatives. While many (44%) consumers feel unprepared for open enrollment, a majority (60%) are thinking more about their healthcare than in previous years.
The time is ripe for administrators, brokers and employers to educate consumers on how to make better, more informed decisions about their care and coverage. This includes sharing information on how health savings accounts (HSAs) can help save and pay for healthcare. This is especially important, as financial preparedness for health issues remains concerning, with two-thirds of HSA account holders lacking enough funds in their account to cover an emergency.
People are thinking about their healthcare more than ever, making now the ideal time to fill in knowledge gaps on HSAs, health plans and more.
Lack of financial preparedness for health issues remains
People generally do not have funds for unexpected medical needs:
- 45% of people would be financially unprepared to cover medical expenses in the event of contracting COVID-19 or another health condition
- Two-thirds of HSA account holders wouldn’t have enough funds in their account to cover an emergency (data gathered from the Alegeus platform)
- 18% wouldn’t have enough to cover an ER visit or a surprise medical bill (data gathered from the Alegeus platform)
People continue to lack knowledge about how HSAs work
Only 34% of people are “very familiar” with HSAs, demonstrating a gap in true fluency:
- >50% understand that HSAs are beneficial for both short- and long-term expenses
- 15% think HSAs benefit the upper class
- 53% would be more likely to delay or avoid care if their high-deductible health plan (HDHP) required them to pay more in out-of-pocket costs
A golden opportunity for education
Now is the time to get out the message on the value of HSAs:
- 60% of consumers are thinking more about their healthcare than in previous years, due to the pandemic.