Understanding and Maximizing Your HSA

April 22, 2024 ABA Foundation

Information to help you understand and maximize your hsa benefits

In 2023, more than 70 million Americans financed their health care with Health Savings Account-qualified health insurance. For more than 20 years, HSAs have helped people manage their growing out-of-pocket health care costs and save for their future medical needs.

The ABA HSA Council represents more than 90% of HSAs in the U.S. The banks and insurers who lead the Council created a new infographic showing policymakers that 75% of HSA owners are from households earning less than $100,000 a year, and more than 80% of HSA owners receive employer contributions.

Click image for larger infographic

Understanding & Maximizing your HSA Benefits InfographicProblem: Increasing out-of-pocket expenses

Solution: Health Savings Accounts enable Americans to save so they can manage increasing deductibles and out-of-pocket expenses.

  • 90% of workers covered by an employer plan have a general annual deductible.
  • The average amount of the general annual deductible is significantly higher than the minimum for an HSA plan ($1,500 for single coverage in 2023).

Affordable Care Act exchange plans tend to have significantly higher deductibles. According to an HHS study, in 2021 the average deductible for an ACA individual silver plan was $4,500.

Myth: HSAs are only for wealthy people.

Fact #1: HSAs are used by people of all income levels.

  • 75% of all HSA owners live in a ZIP code with a median household income (HHI) of <$100K, with the median in the mid-high $70K range.
  • Families with HHI of less than $30K contribute, on average, at least $1,000 to their HSAs and end the year with approximately 25% of that in the account.

Fact #2: Employer HSA contributions benefit American workers and represent a progressive benefit that enables lower income workers to take advantage of an HSA.

  • 83% of workers enrolled in single coverage and 82% enrolled in family coverage are offered an HSA contribution from their employer.
  • The average contributions are $791 for individuals and $1,469 for families.
  • Employees’ share of premiums for family coverage, on average, are more than $1,900 lower for an HSA-qualified plan than for a non-HSA plan.

The views, information, or opinions expressed in this article are solely those of the author and do not necessarily represent the views of Citizens State Bank and its affiliates, and Citizens State Bank is not responsible for and does not verify the accuracy of any information contained in this article or items hyperlinked within. This is for informational purposes and is no way intended to provide legal advice.

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