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Health Plan Options Increase in 2018, HDHPs Gain Momentum
Lively · February 7, 2018 · 2 min read
A recent survey found a significant increase in health plan options in 2018 for large employers. Large employers increased offerings of both traditional and high deductible health plans from 9% to 65%.
HDHPs Gain Momentum
Large Employers Increased Offerings of Both Traditional and High Deductible Health Plans from 9% to 65%.
On top of that, 70% of large employers now include an HDHP in their health plan offerings. The enrollment data still skews toward PPOs (48% of enrollment), followed by HDHPs (35%), HMOs (7%), other small medical plans (7%) and declined coverage (4%). What is the rationale for the changes of employer offerings and employee enrollment?
Increase Costs
While there are likely nuanced factors for the changed healthcare offerings and enrollment, the driving factor in an increase in premiums costs. Insurance costs continue to rise and high deductible health plans lower costs (when compared to traditional health plans like PPOs) for both employers and employees. Economics is often the greatest driver of change. This is clearly the case in the healthcare and benefits market.
Tax Savings Options
The same survey found that HSA participation (of all eligible HDHPs) rose significantly from 50% in 2017 to 80% in 2018! HSA adoption increases are directly correlated to the increase in HDHP enrollment. The tax and savings strategies associated with HSAs are increasing adoption at a faster rate. More employers are aware of these options in 2018 and are using the HSA for its triple-tax savings benefits.
While these HSA benefits aren’t new, the need to ensure dedicated health savings and investment for today has become more important as out-of-pocket health costs rise. We need to find ways to save more, the HSA provides that option.
The movement from traditional health plans to HDHPs has been in progress for the last several years. The increase of HDHP offerings and enrollment in 2018 marks a clear shift in this trend. HSA enrollment will continue to increase as more Americans become eligible. The dedicated tax savings of an HSA will only increase the adoption.
Benefits
2024 and 2025 HSA Maximum Contribution Limits
Lively · May 9, 2024 · 3 min read
On May 9, 2024 the Internal Revenue Service announced the HSA contribution limits for 2025. For 2025 HSA-eligible account holders are allowed to contribute: $4,300 for individual coverage and $8,500 for family coverage. If you are 55 years or older, you’re still eligible to contribute an extra $1,000 catch-up contribution.
Benefits
What is the Difference Between a Flexible Spending Account and a Health Savings Account?
Lauren Hargrave · February 9, 2024 · 12 min read
A Health Savings Account (HSA) and Healthcare Flexible Spending Account (FSA) provide up to 30% savings on out-of-pocket healthcare expenses. That’s good news. Except you can’t contribute to an HSA and Healthcare FSA at the same time. So what if your employer offers both benefits? How do you choose which account type is best for you? Let’s explore the advantages of each to help you decide which wins in HSA vs FSA.
Health Savings Accounts
Ways Health Savings Account Matching Benefits Employers
Lauren Hargrave · October 13, 2023 · 7 min read
Employers need employees to adopt and engage with their benefits and one way to encourage employees to adopt and contribute to (i.e. engage with) an HSA, is for employers to match employees’ contributions.
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