Health Savings Accounts (HSAs) have emerged as one of the top tools to help employees manage their healthcare costs. So how does your plan stack up?
New benchmarks from America’s Health Insurance Plans (AHIP) and the American Bankers Association’s (ABA) HSA Council can give you an excellent idea.
It analyzed data from more than one million HSA accounts held at five bank custodians.
And if you’ve ever wondered how your employees’ savings habits compare to others, this data will answer your questions.
Your questions answered
We’ve taken the survey results and organized them by questions we’ve heard from your peers about HSA programs. Take a look for a quick reality check.
Question 1: Do other employers contribute to employee HSAs – and if so, how much?
Many of your peers are helping to supplement their employees’ savings. Nearly half (44%) of HSAs received employer contributions in 2012, according to the survey.
Just how much help are they offering? The average annual contribution was $1,142. (Compare that with the average annual personal contribution of $2,337.)
Question 2: Are accounts earning interest?
You definitely want to be in this camp – 81% of HSAs earned interest.
Question 3: Are accounts subject to fees?
Conversely, this is one club employees would rather you not be in – 52% of HSAs incurred fees.
The average annual fee: $29. Note: 46% of accounts incurred fees of less than $1.
Question 4: How much do employees have saved in their HSAs?
Compare your balances against these numbers, depending on how long employees have been socking money away:
- $1,198 – 0-12 months
- $1,707 – 13-24 months
- $2,184 – 25 – 36 months
- $2,708 – 37-48 months
- $3,130 – 49-60 months
- $3,937 – 61-72 months
- $4,478 – 73-84 months
- $6,020 – 85-96 months
- $8,453 – greater than 96 months.
Question 5: How much of their accounts do employees use in a year?
Unlike an FSA, which is a use-it-or-lose-it proposition, employees can keep unused money in their HSA. But do they have any money left?
The survey took a snapshot at year-end balances in 2012 – see how your employees’ numbers compare:
- $0 balance (19%)
- $1-$499 (31%)
- $500-$999 (11%)
- $1,000-$1,999 (12%)
- $2,000-$4,999 (14%), and
- $5,000+ (12%).
So how do your HSA results compare? These benchmarks offer a great chance to reaffirm your existing practices and/or find areas worth adjusting.
Info: To read complete survey results, click.
