Alegeus Survey: Consumers Missing Out on HSA Saving and Investing Opportunities
Published on October 19th, 2021
Waltham, Mass. — 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.
With more than 25 years of growth and innovation, Alegeus is the market leader in SaaS-based healthcare payment solutions. Our highly flexible, white-label platform powers account-based benefit programs such as HSAs, FSAs, HRAs, COBRA, wellness incentives, lifestyle benefits and beyond. We deliver exceptional user experiences and differentiated capabilities that help our partners strengthen their product offerings, operate more efficiently, and unlock their full growth potential. Our partnerships with the industry’s leading health plans, third-party administrators, financial services and benefit solution providers give Alegeus unparalleled reach in the market, with access to more than 100 million commercially insured Americans. And our unique partnership model empowers our clients to achieve outsized results – growing their programs at a rate that is 3-4X the market, and with the highest net promoter scores (NPS) in the industry. We never compete with our clients in the market – we win when they win. Alegeus is headquartered in Waltham, Mass., with operations centers in Orlando and Bangalore, and a large remote workforce.