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What is the Short-Term Value of an HSA?

Lively · March 15, 2018 · 2 min read


There are many benefits of an HSA. Helping employers understand their short-term value can create new health saving strategies. Understanding the short-term value of an HSA is important for employees because 82% of all HSA assets were withdrawn in 2017.

HSA Value

This makes sense when you understand the year-to-year health costs (and increases) employees face. Health costs are rising faster than inflation. More employers are providing HDHP (high deductible health plans) than ever. Today over 29% of all employer-sponsored health plans are HDHPs. These plans have higher out-of-pocket costs. Employees are using their HSAs to cover that financial gap. They can save or invest the remaining amount of their HSA fund for future health expenses.

Dedicated Savings for Yearly Health Costs

The first employee experience with an HSA is the opportunity to schedule recurring pre-tax payroll contributions. This is a fully automated way to set and forget HSA contributions. After which, employees have the money when they need it.

An HSA is the only dedicated health savings account that doesn’t expire each year. Therefore employees can add money and know it will be there for them for an expense tomorrow or a few months from now, no matter when their plan year started. This is a key differentiator of the HSA vs. the FSA.

Use Tax-Free HSA Money for Health Costs

Employees can use an HSA to pay for qualified out-of-pocket medical expenses. They have the option to use their HSA debit card or reimburse themselves at any set time in the future. In fact, once employees open and establish their HSA, they can add funds and reimburse themselves for expenses down the road.

Today, 86% of HSA transactions occurred with an HSA debit card. Clearly, the convenience of an HSA debit card is a major factor. It is also an incredible benefit to have these costs withdrawn directly from your HSA funds and not your personal checking or savings account.

Increasing short-term health costs and liabilities are ever present for employees. Understanding how to use the varied benefits of an HSA to limit costs and liabilities creates a clear path to health and financial success for employees.

If you need more help with health account decisions, check out our blog. We will make you a healthcare benefits expert in no time, without any extra work or effort on your end.



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.

piggy bank on pink background


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.

comparing hsa versus fsa


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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