Millennials were especially eager to adopt high deductible health plans, nearly doubling their HDHP participation from 2017. Why? Millennials are experts at sniffing out value, likely why they are selecting HDHPs as fast as they are taking food images.
The value of lower-cost healthcare plans, like HDHPs, is that they still cover you for all the unexpected health expenses. This is a likely reason millennial adoption of HDHPs have been so high.
The bad news is that HDHPs alone won’t help Millennials get ahead when it comes to healthcare options and coverage. What are they missing? We will cover that below.
More HDHPs = More HSAs?
HDHPs are the only HSA-eligible health plan. So more HDHPs mean more HSA-eligible consumers. Millennial HSA adoption grew to 76% in 2018.
However, they were outpaced by both Gen X and Baby Boomers. In 2018, HSA adoption rose to 81% of eligible employees.
So, why are Millennials behind the curve? Millennials actively switching to more affordable HDHP, but behind in HSA adoption. Why? Maybe unexpected health costs might seem far off, like saving for retirement. Or they just have more pressing short-term financial requirements? Either way, delaying HSA savings will only put you behind for next year. Even if you don’t contribute to your HSA today, once you open and establish an HSA, you can reimburse yourself for any medical expenses. With free HSAs like Lively available, there is no excuse!
Employers Need to Take Notice
It might surprise you to know that one in three Millennials turned down a job partly due to poor health insurance options.
If employers want to attract younger workers they need to add more progressive and modern health plans, like HDHPs, because they create more flexibility and saving options. The one thing we know is that millennials love options.
Employers will be delighted to know that HDHPs also help them offer better value healthcare options and save money on employee health costs. Win-Win!
The cost of healthcare won’t subside anytime soon. Finding the right combination of healthcare tools will give millennials the healthcare options they need to succeed. This means affordable healthcare and coverage today and savings for tomorrow.
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.