By and large, employees who are enrolled in a health savings account are using them as spending accounts rather than as tax-free long-term savings accounts, according to new research from Willis Towers Watson. Meanwhile, about one in four employees who can enroll in an HSA opted not to enroll, according to the consulting firm’s survey of more than 2,100 employees.
Here are 10 findings about health savings accounts from the report.
65% of workers are tapping their HSAs to pay for immediate healthcare expenses
27% use the money only when necessary and save the rest
8% are saving the money for the future
45% have more than $5,000 saved in their HSA
24% of employees are not enrolled in their employers’ HSA
57% don't enroll in an HSA because they don't see the advantages
24% don't enroll in an HSA because they don't have enough money to contribute
10% don't enroll in an HSA because their employer doesn't contribute to the account
8% say they haven't enrolled in an HSA because they didn't take the time to do it
5% say they aren't enrolled in an HSA because they don't understand HSAs
Bosses should do more to make the work-from-home experiment palatable and safe for all involved by subsidizing utility bills and workspace equipment, and changing managerial habits, with more trust given to employees.