Arlington, VA (Nov. 19, 2024) — The Plan Sponsor Council of America’s (PSCA) 2024 HSA Survey shows slight growth in health savings account balances and employee contributions last year, despite increased concerns about employees being able to fund their accounts.

PSCA’s sixth annual HSA survey, sponsored by HSA Bank, was conducted in the summer of 2024 and reflects responses from more than 500 employers that provide an HSA program for employees. For the first time, employee education and engagement were the top-cited services that employers are looking for from a vendor, and more employers are providing education more frequently.

“The ability for employees to be able to fund their health savings accounts is a concern cited by double the number of employers as two years ago,” states Hattie Greenan, director of research and communications, PSCA. “Employers are seeking more support with educating employees about the benefits of savings in an HSA to address these concerns.”

Additional findings from PSCA’s 2024 HSA Survey include:

1. Participation: Ninety percent of eligible employees had an HSA in 2023 with three-quarters making contributions to it. The average participant contribution in 2023 was $2,609, up from $2,323 the year before.
2. Account Balances: The average account balance at the end of 2023 was $6,165, up slightly from $6,130 in 2022.
3. Employer Contributions: Three-quarters of employers make contributions to the HSA and most (57.2 percent) provide a set amount per health plan coverage level.
4. Automatic Enrollment: More than 40 percent of organizations automatically enroll employees in the HSA if they enroll in the HSA-qualifying health option.
5. Investments: Two-thirds of organizations offer investment options for HSA contributions, up from 60 percent the year before. Use of investments remains low with only 18 percent of participants investing their HSA balances, accounting for a quarter of all HSA assets.

HSAs as Retirement Savings Tools

Though HSAs can be a great way to save for healthcare expenses in retirement, they are still largely seen and used by employees as a spending account to meet current needs. The survey showed that only a third of employers talk to employees about using their HSA as part of a retirement planning tool and less than 30 percent enable participants to include their HSA balances alongside their retirement accounts for a holistic view of total savings. Though the percentage of employers looking to mirror their HSA investment options with their 401(k) investment options nearly doubled last year, it is still less than ten percent of plans.

“Consumers don’t always realize the powerful tax advantages HSAs provide in supporting costly healthcare expenses,” said Ann Brisk, senior director of innovation and strategy at HSA Bank. “This research emphasized the need for employers and their providers to bolster efforts in educating employees about using HSAs for medical expenses now and in the future so they will fund it as much as possible.”

The survey can be accessed at https://www.psca.org/research/HSA.