employers. And the average
employer contribution was
$868 (for those making
We know that money
talks and employer
adoption. But by how much?
We conducted a study of
our book of business and
adoption. When an
employer contributes to
an HSA, we found that: individuals are 2. 6
times more likely to select an HSA-qualified
plan, over other plan offerings; employees
are 50 percent more likely to open an HSA. 6
2. Timing of contributions affects
behavior. The timing of employer
contributions affects how employees treat
their health care account. Employees treat
their HSA more like a savings account when
they receive their funds at the start of the
year. On the other hand, if they receive
employer contributions throughout the
year, employees tend to treat their account
like a spending account.
Our theory is that when employees
receive contributions throughout the year,
they use their HSA more like a Flexible
Spending Account (FSA). On the other hand,
a lump-sum contribution drives employees
to use their HSA as a savings vehicle.
What our study showed is that there was
a 64 percent year-over-year (2015 to 2016)
increase in spending for those members who
received contributions throughout the year.
This theory is consistent with prior
consumer research we conducted in
September 2016, where many consumers told
us they are living from paycheck to paycheck.
67 percent are considered “spenders.” 7