Enrollment in high-deductible health savings account (HSA) plans has jumped 87 percent since January 2008, according to a report released by America’s Health Insurance Plans. The trade association noticed that a significantly higher number of consumers are finding value in these accounts that help save for medical expenses.
HSAs Experience a 14 Percent Jump in Participation This Year
America’s Health Insurance Plans has reported that more people are opening health savings accounts. The number of participants has significantly increased over the past three years and has even grown 14 percent this year alone.
According to the association, a total of 11.4 million people had enrolled in these specialized savings accounts as of January. This is compared to 10 million in January 2010 and 6.1 million at the beginning of 2008.
Typically, high-deductible health insurance plans come with lower premiums to save on month-to-month costs. To compensate for the loss, insurers will charge higher deductibles.
In many cases, if the deductibles are at least $1,200 for an individual or $2,400 for a family, the plan can be paired with an HSA to help save for when the deductible is needed, but on a pre-tax basis and with contributions from the employer.
Large Employers Are Fastest-Growing Market for HSAs
The association report found that large-group employers–those with more than 50 workers–were the fastest-growing market for health savings accounts in the past year. As for state participation, California had the largest enrollment with 1.1 million.
The reason employers have shown growing interest in these plans is because they allow them to educate their workers on the costs of health care expenses while helping both the company and employee save on these growing costs.
While the association expressed concerns the health care overhaul could potentially have a negative impact on these savings accounts because it imposes restrictions on insurers (i.e. requiring insurance companies to spend a certain percentage of premiums on medical care or offer rebates to customers), for the time being, it appears that these plans will continue to grow for a few more years.
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