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Health Plan Options Increase in 2018, HDHPs Gain Momentum

Lively · February 7, 2018 · 2 min read

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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.

Lively

Lively

Lively is the modern HSA experience built for—and by—those seeking stability in the ever-shifting healthcare landscape. By harnessing modern innovation and deep industry expertise, Lively is committed to bridging today’s savings with tomorrow’s unknowns. Unlike traditional institutions hindered by bureaucracy, Lively’s commitment extends beyond initial set up to providing dedicated, ongoing support and education for every step. So each HSA can reach its maximum potential with minimal headache.

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Benefits

2023 and 2024 HSA Maximum Contribution Limits

Lively · May 16, 2023 · 3 min read

On May 16, 2023 the Internal Revenue Service announced the HSA contribution limits for 2024. For 2024 HSA-eligible account holders are allowed to contribute: $4,150 for individual coverage and $8,300 for family coverage. If you are 55 years or older, you’re still eligible to contribute an extra $1,000 catch-up contribution.

comparing hsa versus fsa

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.

Benefits of HSA employer matching

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.

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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