If you work with, or administer health plans, it’s obvious that the majority of tax advantage accounts (i.e. HSA, Flex etc.) don’t receive enough attention. Employees don’t necessarily value their accounts, because they don’t understand what they’re even for. A study conducted by ebri found that the majority of HSA accounts are used incorrectly . For example:
- Only 13% of HSA accounts reach their annual maximum contribution level
- 77% of HSA accounts with contributions also had distributions
- Only 4% of account holders invested the money in their HSA account