Employer Contributions To HSAs Improve The Employee Healthcare Experience
Published on March 6th, 2020
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.
Employees are more likely to adopt and engage with employer-seeded health savings accounts (HSAs)
Set employees up for success
Simply by offering to contribute to employee HSAs, employers see an increase in account adoption.
Average HSA Adoption Rate:
- Without employer contributions: 20%
- With employer contributions: 34%
Employer contributions also influence how much employees contribute themselves
Without employer seeding, employees contribute an average of $1,651 to their HSA.
But for every dollar an employer does provide, the employee contributes $1.04.
With employer contributions, the average HSA balance goes up to $2,132.
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
A win-win: Contribute to your employees’ HSA
- Offer an HSA-qualified HDHP
- Take the money you would have spent on premiums for a traditional health plan and reallocate it as HSA contributions
- Set up employees for success
- Save on FICA taxes
For more strategies to dramatically improve HSA adoption during open enrollment, download full Alegeus research reports.
©2020 Alegeus. All Rights Reserved.
These statistics were collected from the Alegeus platform in September 2018.