When it comes to employer-seeded health savings accounts (HSAs), a simple truth emerges: Employees are far more likely to adopt and engage with them when employers take the first step.

By offering contributions to employee HSAs (a.k.a. seeding them), companies not only encourage participation but also set their workforce up for long-term financial and healthcare success. The impact is clear. Without employer contributions, only about 22% of employees open an HSA. But when an employer steps in with financial support, that number jumps to 33% — a significant increase that benefits both employees and businesses alike.

The influence of employer seeding goes beyond just account adoption. It also affects how much employees choose to contribute to their HSAs. On average, an HSA without employer seeding sees total annual contributions of about $2,291. However, when an employer contributes, employees tend to save more, increasing their total HSA balance by an average of 14% — raising the amount to approximately $2,612.

This investment in employees’ financial well-being pays off in multiple ways. Employers who contribute to HSAs help their teams better manage healthcare costs while also reaping long-term benefits themselves. Companies that make HSA contributions see:

• Higher adoption rates of HSA-qualified health plans
• More value delivered to employees for their healthcare dollars
• A workforce that is more satisfied, engaged and financially secure

On the flip side, employees without employer-seeded HSAs often struggle to cover out-of-pocket expenses. Without funds in their account, they may find themselves avoiding necessary care due to financial strain or missing out on the significant long-term savings that HSAs provide.

For employers offering an HSA-qualified high-deductible health plan (HDHP), contributing to employee HSAs is a strategic win-win. Not only does it help employees take charge of their healthcare costs, but it also allows businesses to save on taxes and overall healthcare spending. Rather than directing money solely toward premiums for a traditional health plan, employers can instead invest those dollars into employee HSAs — offering tangible financial support that fosters security and engagement across the workforce.

By prioritizing HSA contributions, employers empower their employees to make smarter healthcare decisions, reduce financial stress and build a foundation for future savings. In turn, businesses see a healthier, happier and more productive team — a true investment in long-term success.