What Policy Changes Improve Health Savings Account Offerings?


    What Policy Changes Improve Health Savings Account Offerings?

    In the quest to enhance Health Savings Account (HSA) benefits, insights from a Human Resources Manager reveal a push to increase employer matching contributions. Alongside this expert perspective, we've gathered five additional answers that highlight a range of policy changes employees believe could improve HSA offerings. From expanding eligible expenses to advocating for matching contributions for low-income earners, these suggestions aim to bolster the effectiveness of HSAs in the workplace.

    • Increase Employer HSA Match
    • Expand Eligible HSA Expenses
    • Raise HSA Contribution Limits
    • Enable HSA Rollover to Family
    • Offer Tax Benefits for HSA Contributors
    • Match HSA Contributions for Low-Income Earners

    Increase Employer HSA Match

    One policy change that I would advocate for is increasing the employer match for employee contributions to the Health Savings Account (HSA). This change would encourage employees to save more for their healthcare expenses and support their financial health. Plus, once they have $2,000 in their HSA, they can start investing, which is a nice bonus for long-term savings goals. Additionally, depending on the plan, once employees reach a certain amount in their account, the HSA administrative fee goes away. Most employers I have worked with have always paid this fee, so in the long term, some of the funds would even out a little bit.

    Maja Carapina
    Maja CarapinaHuman Resources Manager, Sonoran Roots

    Expand Eligible HSA Expenses

    Expanding the range of medical expenses covered by HSAs can significantly enhance their value for users. By recognizing more health-related costs as legitimate uses of these accounts, individuals can better manage their out-of-pocket health expenditures. This change would support people in obtaining services or products that might otherwise be financially out of reach, like certain over-the-counter medications and medical equipment.

    It aligns HSA usage more closely with the real-world health needs that individuals and families face. To see this improvement, encourage policymakers to review and update the list of HSA-eligible expenses.

    Raise HSA Contribution Limits

    An increase in the annual contribution limits for health savings accounts can provide individuals with more financial flexibility. With the ability to save more money tax-free for medical expenses, people can build a more robust safety net for unforeseen health issues. It prepares users to better tackle high or unexpected medical bills with less financial strain.

    Elevating these limits aligns with the rising cost of healthcare and could be a significant relief. Reach out to representatives to voice support for higher HSA contribution caps.

    Enable HSA Rollover to Family

    Allowing the transfer of HSA funds to family members on a tax-free basis upon the account holder's death could serve as a benevolent gesture, offering comfort and financial aid during a difficult time. This policy could ensure that the surviving family members can continue to manage healthcare costs without disruption. It adds a familial safety net aspect to the healthcare savings model and underscores the importance of supporting loved ones in times of need.

    This can be especially critical for families with ongoing medical treatments or chronic conditions. Advocate for policy reforms that enable HSA rollovers to family members for a stronger family financial foundation.

    Offer Tax Benefits for HSA Contributors

    Providing tax benefits to contributors of HSAs can encourage more people to fund these accounts. These incentives might include deductions or credits that reduce the overall tax burden, making it more enticing for individuals to save for medical expenses. The policy makes investing in an HSA more rewarding, likely increasing usage and benefiting both individual savers and the broader healthcare system.

    Such a strategy could lead to a healthier population with better access to required medical care. Campaign for tax incentives that reward HSA contributions to promote healthier communities.

    Match HSA Contributions for Low-Income Earners

    Introducing a matching program for HSA contributions for those with lower incomes could dramatically boost the impact of each dollar they save. It mirrors the successful structure used in retirement savings plans, encouraging participation and enhancing the benefit. Not only does this policy serve to equalize health savings opportunities, but it also incentivizes continued contributions and promotes health-conscious financial planning.

    This help for low-income individuals could be vital in bridging the healthcare affordability gap. Lobby for the establishment of an HSA matching initiative to directly support those who are most in need.