Employer’s HSA Guide: A Vital Resource for 2022 Benefits Planning

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As your company begins discussing its 2022 benefits, the 2021 Employer's HSA Guide will be an indispensable resource. Inside, find all the HSA fundamentals, the latest legislative changes, time-saving HR resources, and so much more.

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How the HSA Strengthens Your Company’s Health Plan Mix

The majority of Americans (76 percent) rank healthcare in their top three priorities when considering workplace benefits. And out of 11 popular employee benefits, including a competitive salary and 401(k), almost 40 percent of employees chose healthcare as the most crucial benefit when thinking of switching jobs or staying at a job.

But you likely already know that healthcare benefits are vital to being competitive and retaining your talent. Why do employees value healthcare above nearly every other benefit? The cost.

Healthcare is expensive, and the premiums are rising faster than the rate of inflation. The average family health plan premium has increased a shocking 55% since 2010.

And in 2020, the average single person, or family, spent 11% of their annual income on healthcare expenses. As if that wasn’t stressful enough—the average couple retiring today will spend an estimated $300,000 on healthcare throughout retirement.

Commonly, employer-sponsored health plan premiums share the cost between the employer and employee, but it’s well-known that employers shoulder a more significant percentage of those costs. Employer contributions towards the average single and family coverage have increased 39% over the past decade.

These are not figures to take lightly. They contribute to significant financial pressures placed on businesses and households across the United States. And that was pre-pandemic.

In 2020, businesses and households felt an increased squeeze and greater uncertainty. To maintain employee satisfaction in a competitive job market, employers are continuing to look for ways to cut costs while providing the same, or better, level of benefits. At the same time, employees are becoming more critical of their employer’s health and financial wellness offerings.

Download the Employer’s HSA Guide to gain access to HSA fundamentals, plus time-saving tools for human resources.

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What can your company do to balance the scale between healthcare costs and benefits?

Enter the Health Savings Account (HSA). Businesses will find that an HSA boosts their benefits offerings while lowering their bottom-line. Employees will appreciate the HSA’s unparalleled triple-tax advantages and the ability to build their healthcare safety net. If you haven’t already—you’ll discover that an HSA is one of the smartest and most efficient ways to manage your company's healthcare costs while improving benefits satisfaction for all.

Be Prepared for Accelerated HSA Growth in 2022

KFF's 2020 Employer Health Benefits Survey and Devenir’s 2020 Midyear report paint a clear picture: enrollment in HSA-eligible health plans and HSAs are on the rise.

The number of employees enrolled in a qualifying HDHP has increased by 60% over the past five years, from 15% in 2015 to 24% in 2020. It’s expected that this trend will accelerate over the next several years as healthcare costs continue to rise and employers continue to seek ways to trim benefits costs while employees search for ways to reduce healthcare costs. With the increased awareness will come greater HSA demand and adoption.

Since 2011, HSA enrollment has grown more than 365%. Between June 2019 and 2020, HSA accounts grew nearly 12%, and year-over-year assets grew 19%, resulting in 29.3 million total accounts and $73.5 billion in total assets. HSAs are increasingly more critical to companies and their employees, and we anticipate a surge in HSA demand post-COVID.

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If the economy bounces back from the pandemic as it did after the 2009 recession, we can expect more employers to turn to HSA-eligible health plans and HSAs. There was a 56% increase in companies offering an HSA-eligible health plan between 2009 and 2011, and HSA assets rose 59% during the same period.

The benefits of HSAs are more widely understood today than they were a decade ago—when they were still in their infancy. That could lead to an even larger surge.

As your company begins discussing its benefits mix for 2022, our HSA guide will be an indispensable resource for HSA fundamentals, the latest legislative changes, and time-saving HR resources.

The Employer’s HSA Guide is Your Essential HSA Resource

The 2021 Employer’s HSA Guide provides just the right amount of information without overwhelming. Inside the guide, you’ll find:

  • The healthcare landscape overview
  • The essential HSA overview
  • How employers and employees benefit
  • HSA eligibility requirements
  • How an HSA works
  • What to look for in an HSA provider
  • A glossary of health insurance, health plan, and HSA terms
  • The top employee HSA questions, answered

Download our guide to gain access to HSA industry market trends, plus regulatory changes that have emerged since COVID-19.

Disclaimer: the content presented in this article are for informational purposes only, and is not, and must not be considered tax, investment, legal, accounting or financial planning advice, nor a recommendation as to a specific course of action. Investors should consult all available information, including fund prospectuses, and consult with appropriate tax, investment, accounting, legal, and accounting professionals, as appropriate, before making any investment or utilizing any financial planning strategy.

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