Employer Contributions to HSAs Improve the Employee Healthcare Experience

Employers who offer to contribute to their employees’ health savings account (HSA) see a host of positive engagement – from increased HSA adoption rates to greater overall contribution amounts. In addition, when employers offer HSA-eligible high-deductible health plans (HDHPs), they save on FICA taxes. Learn how much more employees contribute to their HSAs with employer seeding.

Text-only version:

Employees are more likely to adopt and engage with employer-seeded health savings accounts (HSAs)

Seeding sets employees up for success

Simply by offering to contribute to employee HSAs, employers see an increase in account adoption.¹

Average HSA Adoption Rate:

• Without employer contributions: 22%
• With employer contributions: 33%

Employer contributions also influence how much employees contribute to their accounts

Without employer seeding, employee HSAs average $2,291 in total annual contributions.²
Employer seeding increases that amount by an average of 14 percent.
With employer contributions, the average HSA balance goes up to $2,612.

Employers that make contributions:

• Encourage greater adoption of the HSA-qualified health plan
• Deliver better value for their employees’ healthcare dollars
• Have satisfied and engaged employees

With no money in their HSA, many employees may:

• Face out-of-pocket risk that their income can’t support
• Avoid care because they can’t afford the cost
• Miss out on significant long-term savings potential

A win-win solution:

• Employers that offer an HSA-qualified high-deductible health plan (HDHP) can save on both taxes and healthcare spending
• Money that would have gone toward premiums for a traditional health plan can be reallocated as contributions to employees’ HSAs

For more strategies to improve HSA adoption during open enrollment, contact your Alegeus representative.

 

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¹ Source: Alegeus platform data
² Source: EBRI HSA Database, published January 26, 2023