Jun 06, 2019
Employees with larger balances may be viewing their HSAs as free money for current health care without realizing that they can save their HSA balances for retirement expenses, according to Paul Fronstin of EBRI Center for Research on Health Benefits. A recent study from EBRI finds that consumers with higher HSA balances at the beginning of the year had more frequent visits to the emergency room, primary care physicians, and specialists. They are also more likely to use chiropractic services, physical therapy, psychotherapy, blood tests, X-rays, CT scans, MRIs, and musculoskeletal surgery.
The study finds the following about HSA balances:
- Balances in HSAs more than doubled in the study population from 2014 to 2016
- For those with employee-only coverage, balances increased from $1,131 at the beginning of 2014 to $2,861 at the beginning of 2016
- Balances more than doubled among enrollees with family coverage. The average balance was $3,312 at the beginning of 2016. The percentage of accounts with a zero balance at the beginning of the year fell to nearly nothing after two years of contributions. Only 2 percent of HSAs started 2016 with a zero balance
- At the beginning of 2014, 20 percent of those with employee-only coverage and 17 percent of those with family coverage had a zero balance
LISI has the resources and experience to help you guide clients toward the most effective use of their HSA offerings. Contact your LISI Regional Sales Manager to find out more.
