The advantages of health savings accounts (HSAs): Employees find balance between health and wealth

May 28, 2019

2019 Health and Financial Wellbeing Mindset Study
The Advantages of Health Savings Accounts (HSAs): Employees find balance between health and wealth

Our 2019 Health and Financial Wellbeing Mindset study examines employee wellbeing across five different dimensions and reveals startling findings—wellbeing is getting worse, not better.

Below we’ve highlighted some of the challenges that employees are facing when it comes to healthcare costs and their financial wellbeing. Download the full report to learn what other factors play a role in employee wellbeing, where trending inadequacies ensue, and how employers can improve their overall employee wellbeing outlook.

Employees overall are struggling to cover out-of-pocket healthcare costs.

2 out of 5 are saving nothing for healthcare expenses not covered by insurance

41% have reduced or stopped saving for the future (for retirement or other goals) to pay for healthcare costs

And high healthcare costs are driving poor health behaviors.

37% have not gotten care for themselves or another family member because they could not come up with the out-of-pocket costs required to pay for the care

36% have stopped taking or taken less medication (either less frequently or fewer in number), or delayed filling a prescription to save money

36% have declined other types of insurance or benefits, like dental or vision, to be able to pay for health insurance

But HSAs are helping drive better financial decisions.

“How much are you saving or setting aside this year for healthcare expenses not paid by insurance?”

2019 (all)
2019 (with an HSA)
Nothing
42%
29%
Enough to cover some of my annual deductible or expected out-of-pocket costs
31%
34%
Enough to cover all of my annual deductible or expected out-of pocket maximum
17%
19%
My annual out-of-pocket maximum or more
5%
9%

Even so, while 80% of employers highlight the long-term savings appeal of the HSA in their communications, the percentage of employees making the maximum annual contribution remains low.

“How do you decide how much to save to your HSA versus your Retirement Savings plan?”

21%

save the maximum amount allowed in the HSA and retirement savings plans

16%

figure out how much they need and put some in each accordingly

33%

figure out what they can afford and put some in each accordingly

16%

don’t really have a specific or regular plan and decide as they go along

Saving in an HSA or defined contribution plan, generationally speaking:

41% of established Millennials say they figure out what they can afford and put some in both accounts

Gen Xers most often figure out what they can afford (30%) or save the maximum amount allowed in both accounts (30%)

Looking for more insights and data from Alight's 2019 Health and Financial Wellbeing Mindset Study?

Download the full report
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2020 HSA annual contribution and catch-up limits
2020 HSA annual contribution and catch-up limits

Download this cheat-sheet to learn the maximum contribution amounts to HSAs in 2020.

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