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A summary of the articles included in the May 2024 edition:
- HSA Enrollees Use Health Care Services Differently Than Those With PPOs, Research Shows
- HSA Deposit Rate Update – March 2024
- ABA 2024 HSA Infographic
- Does Your Spouse’s Health FSA Affect Your HSA Eligibility?
- HSA Assets Hit Record in 2023
- Available Now – New HSA Balance Projection Calculator
HSA Enrollees Use Health Care Services Differently Than Those With PPOs, Research Shows
Employees who invest in health savings accounts use health care services differently than those with a preferred provider plan, according to new research.
The Employee Benefit Research Institute looked at the usage and cost of health services accessed by the two cohorts and found that HSA enrollees typically make less use of emergency departments, specialists, outpatient services, and prescription drugs (for those with no health conditions) but higher use of inpatient services and primary care (for those with two or more conditions) relative to PPO enrollees.
HSA Deposit Rate Update – March 2024
In its fifth consecutive meeting, the Federal Reserve has maintained the federal funds rate between 5.25% and 5.50% for the first quarter of 2024, signaling that the rate may have peaked this cycle. Projections from the Fed’s March FOMC meeting suggest a possibility of 75 basis points reduction in 2024, contingent on economic data aligning with their 2% inflation target. Concurrently, HSA deposit rates have increased slightly since 2021, with average rates at 0.43% for a $1,000 balance and 0.54% for a $10,000 balance as of March 31st, 2024, indicating a gradual upward trend influenced by tiered rate schedules.
ABA 2024 HSA Infographic
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.
Does Your Spouse’s Health FSA Affect Your HSA Eligibility?
Question: I’m enrolled in my employer’s HSA-qualified plan that covers my wife and me. I don’t participate in my company’s general Health FSA. My wife waived medical coverage through her employer but enrolled in her company’s general Health FSA through her employer. Am I eligible to contribute to my Health Savings Account?
Answer: No. A general Health FSA is governed by many of the same rules that apply to medical plans. Under one applicable rule, the employee (subscriber), her spouse, her tax dependents, and her children to age 26 are all covered by the general Health FSA. It doesn’t matter whether these family members are enrolled in her medical coverage, or she waives enrollment in the medical plan. Nor can they choose to opt out of Health FSA coverage, as they can with a standard medical plan. These family members are entitled to reimburse their qualified expenses through her general Health FSA unless her employer has specifically excluded certain family members from the plan (which is quite rare).
HSA Assets Hit Record in 2023
Health savings account (HSA) assets hit a record in 2023, new data shows.
HSA assets surged to $123.3 billion last year, up nearly 19 percent from the previous record of $104 billion in 2022, according to an annual report by Devenir Group, an HSA research firm and investment consultant firm. Those funds were held in more than 37 million accounts—which marks a 5 percent jump year over year in the number of HSAs.
The report’s big finding of a significant jump in assets is a strong indicator of the popularity of the accounts, which have been embraced by more employers and employees in recent years.
Available Now – New HSA Balance Projection Calculator
More informed account holders are better positioned to make the decisions necessary to achieve their financial goals. Devenir is committed to providing industry leading HSA tools and education to guide account holders through their healthcare saving journey. As part of that mission, our team is excited to announce the release of our new HSA Balance Projection Calculator!