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With inflation driving the cost of goods and services steadily higher, your employees are looking for opportunities to save on essential expenses. Fortunately for many of these individuals, health savings accounts (HSAs) have become a tool for managing healthcare costs. They allow them to better navigate an environment where they’re being forced to delay care due to cost concerns, sometimes having to choose between healthcare needs and other daily costs of living.

Looking at recent data, it’s clear that these tax-advantaged accounts are popular among employers and employees alike. HSA enrollment continues to increase, with the most recent data showing more than 32 million account holders in 2022, an increase of nearly 10% from 2021. In addition, HSA assets increased 19% from 2020 to 2021, reaching $98 billion. Those assets are expected to hit $150 billion by the end of 2024, with the average account holder carrying a balance of $15,146, including both deposit and investment accounts.

Not sure if an HSA is right for your employee population?

Recent trend data shows that HSAs appeal to both spenders and savers, and can benefit employees throughout the course of their careers. For example, while HSA investments reached $34.4 billion in 2021, account holders are also actively spending their HSA funds. According to data from Devinir, 70% of HSA contributions are spent on healthcare expenses each year.

In addition, trend data from HSA Store shows that consumers are spending HSA funds not only on clinical services but on items that support their everyday health and well-being. More specifically, pain relieving massagers, breast pumps, baby monitors and other products for new parents, as well as OTC medications, fever reducers, allergy medicines and sunscreens were among the top items purchased by HSA users in 2021.

Human resources professionals play an essential role in helping American families capitalize on the value of HSAs and protect the health and well-being of their families.

Here are four simple ways to help your employees get even more value from their HSA:

Employees are already purchasing these products, so why not buy them with tax-free dollars? You can also give employees access to a comprehensive, searchable eligibility list as a guide.

Now more than ever, your employees need a clear understanding of how their HSA works and how it can help them manage healthcare costs and open enrollment is the perfect time to reinforce this information.

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HRMorning, part of the SuccessFuel Network, provides the latest HR and employment law news for HR professionals in the trenches of small-to-medium-sized businesses. Rather than simply regurgitating the day’s headlines, HRMorning delivers actionable insights, helping HR execs understand what HR trends mean to their business.

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