Each month Devenir highlights a selection of articles to keep you abreast of the latest trends and developments in the HSA marketplace.
A summary of the articles included in the October 2017 edition:
- The Health Reform That Employers Would Like to See: Mercer Survey Results
- Health Savings Account Balances, Contributions, Distributions, and Other Vital Statistics, 2016: Statistics from the EBRI HSA Database
- HealthEquity to Serve Alliant Credit Union HSA Members
- 2017 Employer Health Benefits Survey – Section 8: High-Deductible Health Plans with Savings Option
- HSA Bank White Paper Explains how Health Savings Accounts (HSAs) can be an Integral Part of a Holistic Retirement Strategy
- State-Level Trends in Employer-Sponsored Health Insurance, 2012-2016: Chartbook and State Fact Sheets
The Health Reform That Employers Would Like to See: Mercer Survey Results
Key findings from Mercer’s recent 5 question survey of nearly 300 health benefit professionals:
- Little support for continued repeal and replace efforts, though employers seek smaller fixes.
- Employers favor new approaches to reducing excise tax risk – without cost-shifting.
- Despite CMS’ announcement that they will delay or cancel certain mandatory programs aimed at moving Medicare away from traditional fee-for-service payment, employers remain committed to provider payment reforms
- Biggest cost drivers as rated by employers:
- Specialty pharmacy – 86%
- High-cost claims – 74%
- Increase in frequency of specific diseases – 56%
- Waste in the system – 42%
- ACA mandates – 33%
- Over-utilization of services by members – 19%
Health Savings Account Balances, Contributions, Distributions, and Other Vital Statistics, 2016: Statistics from the EBRI HSA Database
Key findings and insights from the September 2017 EBRI Issue Brief:
HSAs are a significant part of employment-based health benefit programs.
- Enrollment in high-deductible, HSA-eligible health plans was estimated to be between 20.2–22.6 million policyholders and their dependents, and covered nearly 3 in 10 employees in 2016. The HSA market did not exist until 2004.
- Similarly, there were an estimated 20 million HSAs as of the end of 2016. Most HSAs in the EBRI HSA Database are relatively new; more than 3 in 4 HSAs (77 percent) have been opened since 2013.
HSA balances increased in 2016.
- Two-thirds of account holders ended 2016 with positive net contributions, meaning annual contributions were higher than annual distributions.
- Over 90 percent of HSAs with individual or employer contributions in 2016 ended the year with funds to roll over for future medical expenses.
Contributions and distributions drive account balances.
- On average, individuals who made contributions in 2016 contributed $1,986 over the year and HSAs receiving employer contributions in 2016 received $935. But only 13 percent of account holders contributed the fully allowable annual amount.
- Three-fourths of HSAs with a 2016 contribution also had a distribution during 2016. Of the HSAs with distributions, the average amount distributed was $1,766, less than the average contribution, resulting in balance increases.
- The presence of individual or employer contributions were associated with an increase in account balances in 2016—even if account holders took a distribution.
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HealthEquity to Serve Alliant Credit Union HSA Members
HealthEquity, Inc. and Alliant Credit Union announced they have signed an agreement to transition the Chicago-based credit union’s health savings account (HSA) portfolio to HealthEquity. The agreement establishes HealthEquity as the HSA custodian for all current Alliant HSA business. The transition of the Alliant HSAs to the HealthEquity platform is expected to be completed by the end of the year.
2017 Employer Health Benefits Survey – Section 8: High-Deductible Health Plans with Savings Option
Key findings from the Kaiser Foundation’s 2017 Employer Health Benefits Survey:
- Twenty-four percent of firms offering health benefits offer an HDHP/HRA, an HSA-qualified HDHP, or both. Among firms offering health benefits, 9% offer an HDHP/HRA and 17% offer an HSA-qualified HDHP.
- Enrollment in HDHP/SO plans has increased over the last five years, from 19% of covered workers in 2012 to 28% in 2017.
- The average annual premiums in 2017 for covered workers in HDHP/HRAs are $6,438 for single coverage and $18,948 for family coverage. The average annual premium for single coverage in HDHP/HRAs is significantly less than the average annual premium for single coverage for covered workers in plans that are not HDHP/SOs.
HSA Bank White Paper Explains how Health Savings Accounts (HSAs) can be an Integral Part of a Holistic Retirement Strategy
A new white paper released by HSA Bank explains how an HSA can help cover the costs of healthcare in retirement, which a recent study by Health View Services found could total over $400,000 for a healthy 65-year-old couple retiring today.
State-Level Trends in Employer-Sponsored Health Insurance, 2012-2016: Chartbook and State Fact Sheets
This SHADAC chartbook uses data from the Medical Expenditure Panel Survey-Insurance Component (MEPS-IC) to highlight the experiences of private-sector workers with employer-sponsored insurance (ESI) from 2012 through 2016 at the national level and in the states.