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.

Employer HSA Seeding

Text-only version:

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.

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