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The HSA Mindset

Lively · November 14, 2017 · 5 min read


I have good news and bad news. Let’s start with the good news. HSAs account for over 21M individual account holders today and are growing incredibly fast. This includes over $43 billion in assets of which $6.8 billion is invested. This is very similar, no better, than the trajectory the 401k market saw in the late 1980s and early 1990s. Now everyone you know has a 401k.

HSA Value

The bad news is that 37% of people who were eligible for an HSA still do not have one. This is lost health savings, lost tax savings, and lower financial security for many Americans. The reasons vary, but the top factors include financial constraints and need. Top reasons for not opening an HSA if you are eligible are:

  • 33% said they didn’t have the money to contribute

  • 31% said they didn’t see the need.

Other top reasons to not open an HSA included: too much trouble, too complicated, and too hard to upload receipts.

The HSA Mindset

So what is the HSA mindset? Think of it as a hybrid of your friendly neighborhood boy scout and a cutting-edge technology expert. Is it sexy, no, or maybe it is in the same way that super-fast wifi makes you smile! It is, however, one of the most practical, reliable, and dependable healthcare options available on the market. You might not seek it out, but you sure know it will be missed if you lose it.

HSAs provide the dedicated health savings you need to ensure you are covered when you need to most. You get healthcare not because you want to use it, but because you want a health safety net. An HSA follows the same train of thought, but unlike a healthcare plan, it’s your money! Save it, Spend it or Invest it.

Why open an HSA even if you don’t have the money today?

HSAs provide a great opportunity to pay for unexpected health costs, even if you need to contribute after the fact. Once you have “established” your HSA, you can use tax-free dollars to pay for medical bills and other qualified out-of-pocket medical expenses, even if you add those contributions after the quality event. In that sense, it works… RETROACTIVELY. Opening an HSA gives you options for health saving, spending and investing in the future. Opening an HSA is a very important step into creating those options, don’t make the mistake of waiting, even if you don’t have the money today. $1 is all you need to get started.

Don’t you like free money?

HSAs offer triple-tax advantages that include tax-deductible contributions, tax-free interest/investment gains and tax-free withdrawals for qualified medical expenses. This means you aren’t paying income taxes (most states or federal) if you use the money to pay for any qualified out-of-pocket medical expenses. Healthcare costs continue to increase, HSAs provide an actionable way to limit those cost increases on your savings and income.

But you might be wondering, what happens to that money if you don’t spend it, or want to spend it on qualified medical expenses? After the age of 65, you can use your HSA for anything just like a 401k or IRA. Save today, so can spend tomorrow. It’s like a 2-for-1 deal. It’s nearly impossible to find this level of flexibility in the healthcare space, HSAs are truly unique. If you save tax-free money with your HSA today, you can add HSA investment options to let that money grow and increase the return on your original savings. More money for you, more money to save for health expenses or to use in retirement.

Most HSA platforms are Annoying

Ok, you got us. We agree with you. The HSA industry is largely dominated by banks and other financial institutions with outdated technology. They charge nominal and frustrating fees just to use your HSA debit card for example and you get stuck waiting on the phone to speak to customer service for hours at a time. They make it hard to get your HSA money when you need it most.

These exact reasons were the foundation for Lively. Lively has built a modern HSA platform from the ground up. By focusing on user experience and design, Lively offers a fresh approach to the HSA. We don’t nickel and dime our users and we are FREE for individuals.

To make it easy for you, We offer paperless onboarding and administration making it really simple to sign up and use your HSA. You can access your funds via a Lively-branded debit card for qualified medical expenses and manage your account online. Plus we have a team of dedicated customer service members ready to take your call. At Lively, we think of an HSA like an extra pair of socks on a cold night. Oh so cozy. See the mindset for yourself and get started today.

If you need more help with open enrollment 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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