With the growing popularity of high deductible healthcare plans (HDHP) comes the growth of HSAs (Health Savings Account). HDHC without HSAs is like peanut butter without jelly. According to a study of 400,000 HSA accounts though, people are not properly leveraging the option.
Only 2% of companies offered HDHP in 2002 which has jumped to 75% in 2014 which in turn has led to more HSAs. Yet only 4% of HSA account holders invest their HAS balance leaving it in a non-interest bearing account and only 5% max out with the median investment at $700/year compared to an allowed amount of $6450.
Like with any benefit, employees need education especially as more companies move to HDHC exclusively. But there is a limited benefit budget for most people and they need help allocating their limited benefit dollars. Enter technology (See Tina Wilson, MassMutual video) and experienced advisors willing to work with individual employees.
