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A summary of the articles included in the February 2025 edition:
- HSA Deposit Rate Update – December 2024
- HSA Modernization Act of 2025 Would Expand Eligibility and Opportunities
- Balancing Benefits: HSAs Aren’t Just for High Earners
- Lively’s Health Savings Accounts Have an Average Balance of 35% Higher Than Industry Average, Helping Account Holders Offset Rising Costs of Healthcare and Health Insurance
- You Can Save $1 Million in Your Health Savings Account (HSA)
HSA Deposit Rate Update – December 2024
HSA deposit rates are showing signs of cooling after sustained growth throughout 2023-24, with $50,000 balances dropping from 0.63% to 0.61% between September and December 2024. This shift aligns with the Federal Reserve’s more accommodative monetary policy, as the Effective Federal Funds Rate decreased from 5.33% in the summer of 2023 to 4.33% at the end of 2024. Learn how these changes impact HSA providers, employers, and account holders in today’s evolving economic landscape.
HSA Modernization Act of 2025 Would Expand Eligibility and Opportunities
A new bill would address some inequalities in Health Savings Account eligibility and help Americans better manage their out-of-pocket medical costs.
Rep. Beth van Duyne (R-TX) recently introduced the first of what will probably be many bills to enhance Health Savings Accounts. Her HSA Modernization Act addresses focuses on expanding Health Savings Accounts through a handful of measures that permit more Americans to open and fund accounts and provide more flexibility in plan design.
Let’s analyze the major provisions of the bill.
Balancing Benefits: HSAs Aren’t Just for High Earners
No two households are alike, but they all collect tools over time. Some are specialized—like that wrench you bought for a single project years ago—but the most valuable are almost always the most common.
Employees and their families are stretched right now. Even as inflation has (generally) cooled, everyone is looking for ways to make their dollars go further. A health savings account (HSA) is one such tool that enables families to stretch health care dollars while offering long-term financial benefits. Importantly, HSAs are not only useful for high-income individuals.
Lively’s Health Savings Accounts Have an Average Balance of 35% Higher Than Industry Average, Helping Account Holders Offset Rising Costs of Healthcare and Health Insurance
Lively announced the release of its 2025 HSA Outlook report. As Americans continue to navigate economic volatility, financial stress is on the rise. HSAs, which offer tax-free savings, investing, and spending on health-related expenses, have long been a strategy for account holders to save for both the short and long term. This report helps companies and individuals understand what to look for in a provider, including easy-to-use features, built in account holder education, and accessible investing options, in order to best meet their needs in the year ahead.
You Can Save $1 Million in Your Health Savings Account (HSA)
Saving enough for retirement can be a challenge for workers, especially as health care costs can be considerable. Not only does Medicare not cover health care expenses in retirement in full, but employers have been cutting back on retiree health benefits as well. As a result, employees are increasingly assuming responsibility for out-of-pocket health care expenses that they may incur in retirement. This Fast Fact reviews findings from a recent EBRI-authored report that projected how individuals can save just over $1 million in their health savings account.