An HSA or Health Savings Account is a triple-tax advantaged account with many benefits for people who utilize them correctly. However, there is a major lack of education regarding HSAs and many people are unaware of the great opportunities that HSAs offer. At MEDSURETY one of our goals is to help you maximize your health savings and seeing this lack of education concerns us as this means not everyone is savings as well or as much as they could.
One of the main findings from the WEX Health Clear Insights Survey was that many people are unaware of the tax advantages and investment options that HSAs offer. According to their recent survey almost half of the respondents viewed 401(k) accounts as having the best pre-tax savings advantages and close to a quarter of the respondents weren’t even sure which account was the best. They found that only 13 percent identified HSAs as the account that offers the best pre-tax advantages. This is a major information problem as HSAs can be the best account for pre-tax savings. If people are not even aware of the great benefits HSAs have to offer, then most people must not be taking advantage of their great pre-tax benefits.
Another important finding was that over half (54%) of the respondents were unaware that their funds from their HSA can be used to invest in stocks, mutual funds, and other investment vehicles, further increasing their value. Another potentially troubling finding is that about three quarters of the respondents see their HSA as a way to pay for their healthcare expenses for this year. This is great as this is the main use of an HSA account, but it could indicate that the respondents were not aware that their funds can be carried over into the next year or invested to grow its value.
Go to our Resources Page to download the full survey findings.
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Findings are from the WEX Health Clear Insights Report. Credit WEX Health and Zogby Analytics for findings.