HDHP and HSA Offering
Only half of organizations offer HSA-eligible High Deductible Health Plans, despite the cost savings.
The benefits of an HDHP, and offering an HSA alongside it, are still misunderstood and thus go underutilized.
While High Deductible Health Plans have been growing in popularity, and over 55% of American Workers are enrolled in one according to a study by Value Penguin, Lively found that of the 250 leaders surveyed, their employees are still choosing PPO and HMO plans over HDHPs. In addition, larger organizations of more than 100 employees are more likely to offer HDHPs, even though HDHPs can offer significant cost savings for smaller businesses.
Plans offered in 2023
PPO
HMO
HDHP
Plans adopted in 2023
PPO
HMO
HDHP
How do organizations offer HSAs?
Alongside HDHP
Embedded with insurance carrier
Different provider than insurance carrier
Self-sourced
By choosing HSAs embedded with a carrier, employers are missing out on important features and quality employee education and customer service that can help their employees better adopt and utilize their HSAs.
of organizations offer HSAs.
Large organizations with more than 100 employees are more likely to offer them. Only 51% of those with less than 100 employees offer HSAs.
Analysis and action items for brokers and employers
Employee education is key for adoption of High Deductible Health Plans.
Employers and brokers can do better to educate employees about the benefits of these plans, including 100% coverage of preventative care, HSA eligibility, and only paying for the care they need.
Offer an HSA, and an employer contribution, alongside an HDHP.
When employers offer an HSA alongside an HDHP they can better support HDHP adoption. An HSA can make signing up for an HDHP feel less risky for employees, as it provides a financial safety net that can help employees cover expenses up to their higher deductible. Currently only 4 in 10 of employers offer an HSA alongside an HDHP, missing out on a key advantage of the plan.
Switch providers if you’re not getting what you need from your HSA.
Many employers don’t understand that HSAs are carrier agnostic. Often HSAs that are provided or bundled with insurance are an afterthought: Difficult to use for employees and employers, poor service, high fees, and a lack of features employees want.