Alegeus Survey: Consumers Missing Out on HSA Saving and Investing Opportunities
Published on October 19th, 2021
Waltham, MA — October 19, 2021 — Alegeus, the market leader in consumer funding solutions, today unveiled the results of its 2021 Pre-Open Enrollment Survey and 2021 HSAs and Investing Survey, which jointly cover consumer preparedness for open enrollment, their knowledge of health savings accounts (HSAs) and the power of investing HSA funds. The survey results indicate that while most consumers are actively saving for retirement (53%) and many consider themselves savvy investors (45%), a striking number do not see HSAs as a means for achieving either, with only 32% understanding that HSAs can help with long-term expenses, and only 17% investing HSA funds for growth. This presents an area on which benefit administrators and employers can focus their consumer education efforts.
I see a major opportunity here to put the ‘savings’ back in ‘health savings account,’” said Leif O’Leary, Alegeus CEO. “We’re happy to see that consumers understand the value of long-term savings and investing. That’s a critical first step. But now it’s up to us as health benefit experts to provide the education and resources to help consumers take advantage of their HSA in pursuit of their saving and investing goals.
A year and a half into the COVID pandemic, a significant percentage of consumers surveyed understand the value of and need for long-term savings:
- 56% have contemplated healthcare costs specifically in their retirement planning
- 56% feel they are on track with my long-term savings goals administration platform
However, 83% of those surveyed who have an HSA don’t invest their funds for growth. This could be due not only to a lack of available funds (most HSAs set a minimum threshold of $1,000 to invest), but also to a lack of knowledge about how HSAs work. Indeed, only 33% of respondents said they were “very familiar” with HSAs. Other survey responses confirm the large gap in true fluency:
- Only 32% of consumers understand that HSAs are beneficial for both short- and long-term expenses.
- Only 42% of consumers know HSAs can be used for investing
In pursuit of more widespread understanding of the power of saving and investing with HSAs, Alegeus is using HSA Month (October) to provide resources to help benefit administrators and employers in their education efforts this open enrollment season and beyond. Over the course of the month, Alegeus will share strategies, data, FAQs and more to help consumers leverage this tax-advantaged benefit account that has the potential to grow their long-term and retirement savings.
The potential of how much consumers can save and the opportunities they have to grow their funds through an HSA excites me,” O’Leary said. “There’s a lot of work ahead, but we’re ready to double-down on our efforts to help increase consumer fluency of this important benefit account, including providing helpful resources to our client partners.
Following this year’s open enrollment season, Alegeus will deploy a second survey to understand how the process went for consumers and to note any improvements in healthcare financial fluency.
Alegeus is the market leader in consumer funding solutions, delivering the industry’s leading white-label platform that transforms how consumers save and pay for healthcare. Our next-generation technology simplifies the administration of healthcare benefit accounts (including FSAs, HSAs, HRAs, wellness incentive, dependent care and commuter accounts) and COBRA, using data-driven insights to guide consumers to the best coverage, cash and care strategies. More than 350 Alegeus clients – including health insurance plans and third-party administrators – leverage our deep expertise and proven technology to administer benefit accounts for more than 30 million members and to process more than $9.1 billion in consumer healthcare payments annually. As the healthcare and benefit markets continue to evolve, Alegeus delivers solutions that enable clients to evolve their service offerings, operate their businesses more efficiently, and lead consumers to better health and financial decisions. The company is headquartered in Waltham, MA with operations in Orlando, FL and Milwaukee, WI.