Employers See HSAs as Part of Retirement Benefits Strategy

The majority (75.3%) of employers responding to the Plan Sponsor Council of America’s (PSCA)’s HSA Snapshot survey view health savings accounts (HSAs) as part of their retirement benefits strategy. 

Nearly 60% of the respondents believe HSAs should replace flexible spending accounts (FSAs), and nearly three-fourths of employers think HSAs should be open to all employees, not just those enrolled in a high-deductible health plan (HDHP).

Based on the employer responses, about 80% of employees are eligible to participate in the HSA, when offered by the employer. The average HSA account balance was $3,161. A little more than 40% of respondents indicate that 25% or fewer of their participants use up the entire HSA balance every year and an additional 35% of plans state that 26% to 50% of their participants use their entire balance every year.

More than 80% of the employers reported contributing to the HSA, where two-thirds provide a set dollar amount based on the HDHP coverage tier. Many plans (40%) front-load contributions at the start of the year, while 30% contribute each payday.

More than half of respondents reported covering the cost of HSA maintenance fees for active employees, and 6% pay them for terminated employees. 

Only 21% of surveyed employers are concerned about the fiduciary liability of sponsoring a HSA-HDHP.

Full survey results may be found here.