Primary reason consumers enroll in HSAs is to pay for future medical costs

More than 40 percent of individuals enrolled in a health savings account (HSA) as a way to pay for future medical costs, according to recent research from ConnectYourCare. The survey, ConnectYourCare Consumer-Driven Health Plan Enrollment & Usage Trends Survey, noted that this response came in ahead of “tax savings,” which 21 percent selected, and “lower premiums” offered by high deductible health plans (HDHP), which only 9.5 percent of survey respondents selected.

The survey also found the following:

HSA enrollment. Forty-seven percent of employers said employees did not enroll in HSAs, flexible spending arrangement (FSAs0, and other tax-advantaged accounts because they are simply unaware of financial tax benefits.

Contribution amounts. When deciding how much to contribute to an HSA and/or FSA, 58 percent of those surveyed said that reviewing previous spending habits is the most useful activity. Twenty-two percent preferred reviewing potential savings and spending scenarios.

Health costs in retirement. The survey also showed that future health care costs are a major concern when considering retirement. Sixty-three percent of respondents selected health care expenses over lifestyle expenses as their primary concern when it comes to retirement.

SOURCE: http://www.connectyourcare.com

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