– Alegeus report uses participant data to debunk four common misconceptions about health savings accounts (HSAs) that consumers have about HSAs.
Alegeus, a provider of consumer-directed healthcare (CDH) solutions unveiled part two of its research series on health savings account (HSA) participants, the 2019 Alegeus HSA Participant Profile. For the report, Alegeus conducted a survey of more than 1,400 U.S. healthcare consumers in order to:
• Measure the general understanding of HSAs among participants
• Gain perspective on real (versus perceived) account holder characteristics
• Understand how participants are using their accounts for current and future expenses
The premise of healthcare consumerism is that, if given more financial responsibility for healthcare and empowered to make more informed decisions, consumers will make better choices that lead to improved health outcomes and decreased overall healthcare costs.
Debunking 4 Common HSA Myths
The research report reveals HSA participants to be America’s savviest healthcare consumers and uses the same data to debunk four common misconceptions about health savings accounts (HSAs) that include:
HSA-qualified health plans are only for the healthy and wealthy: HSAs support a diverse group of participants who have middle-class incomes ($72.4k is the average household income), families (52 percent have children), and even chronic conditions (10 percent consider themselves to be unhealthy).
HSAs lead consumers to avoid seeking care: Most HSA participants (80 percent) claim to make healthy lifestyle choices and smart healthcare decisions. In fact, only four percent of HSA participants say they avoid care.
HSAs are for short-term expenses, not long-term/retirement savings: Many consumers don’t realize that HSAs are more flexible and offer greater tax benefits than a 401(k). An optimized healthcare savings strategy will include both a 401(k) and an HSA.
Saving and investing in an HSA is not a top priority for account holders: Today, only 13 percent of participants say they invest their HSA dollars for growth; however, their balances are growing and nearly 60 percent say they may start investing soon. These are signs that HSA participants are beginning to understand the importance of saving for the future.
What The Key Findings Mean for Consumers
The report confirms that HSA participants are engaged in their healthcare decisions, and they will continue to get better value for every dollar they spend or save as they contribute and use their accounts. In addition, education, and guidance continue to be a central theme to drive HSA adoption and participant use.
HSAs Are The Foundation for Healthcare Dollars
“Health savings accounts are the foundation for Americans to get better value for their healthcare dollars,” said Steven Auerbach, Alegeus CEO. “That is why, earlier this year, we unveiled the industry’s first Smart Account that uses artificial intelligence (AI) and machine learning to meet consumers where they are – guiding them to save for the future and ultimately unlock the full tax advantages these accounts offer.”