This article was published on November 6, 2018 on Employee Benefit News, written by Kathryn Mayer.
HSA: A savings account without the saving?
By and large, employees who are enrolled in a health savings account are using them as spending accounts rather than as tax-free long-term savings accounts, according to new research from Willis Towers Watson. Meanwhile, about one in four employees who can enroll in an HSA opted not to enroll, according to the consulting firm’s survey of more than 2,100 employees.
Here are 10 findings about health savings accounts from the report.
65% of workers are tapping their HSAs to pay for immediate healthcare expenses
27% use the money only when necessary and save the rest
8% are saving the money for the future
45% have more than $5,000 saved in their HSA