Health savings accounts became significantly more popular in 2011, according to one company.
Wells Fargo reported more than 100,000 new HSAs opened last year, a 38 percent increase in the number of accounts with 22 percent growth in HSA assets. According to the company, many find the tax and retirement benefits of HSAs appealing, which is why more people are choosing them as a health insurance option.
Data from the Employee Benefit Research Institute shows that there are more than $12.4 billion assets in over 8.4 million account-based health plans across the nation, a combination of HSAs and health reimbursement agreements. Another survey showed that more than 20 percent of employers now offer such a plan.
Workers and companies are increasingly turning to account-based plans as a means to limit the cost of employee benefits without eliminating coverage, as many consider them more affordable and sustainable than other plan structures.
This may be a useful choice in plan administration and selection, although employers considering such a change should assess the needs of their particular employees and keep in mind that different cost structures may be better suited to their particular situation.
