An everchanging world can present new and unexpected challenges. Today more than ever, job seekers have more opportunities for flexible work environments and schedules. In the past, employees would often work a traditional 9-5 job Monday through Friday. But today, individuals are looking for job flexibility whether that be freedom to work whenever and wherever...
HSA Trends to Help You Boost Participation
Health Savings Accounts, or HSAs, have short-term and long-term perks for participants. As an employer, it can be hard to determine how to position these accounts since your employees needs vary oftentimes. To maximize participation, how should employers be contributing to HSAs?
Why Should Employers Contribute to Employee HSAs?
Employee wellness and employee benefits go hand-in-hand. The great resignation presented challenges, but it has also presented opportunities for employers to support their employees though their HSA. Employee benefits are one of the ways that employers can differentiate themselves from others.
What’s the Employer Contribution Sweet Spot?
Over 35%of employers on the WEX benefits platform contributed to their employees’ HSAs in 2021. From these contributions, some trends were observed regarding employer contributions:
- The average employer contribution in 2021 was $941.
- For family HSAs, an employer contribution between $1,500 to $1,750 yields the highest employee contribution.
- For self-only HSAs, an employer contribution between $750 to $1,000 yields the highest employee contribution.
- Any contribution of $50 or more will encourage participation.
Participation and Investment Grows, but Most Still Spend Funds
The industry saw about an 8% year-over-year growth in the number of HSAs across the industry. The number of HSA investment assets increased 45% year-over-year.
While participation and invested in HSAs is growing, only about 7% of HSA participants invest any of their funds. The vast majority of HSA participants are spenders and savers.