Devenir HSA Newsletter: April 2021

  • April 1, 2021

Subscribe to Devenir’s monthly newsletter and stay up to date with the latest HSA news! 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 March 2021 edition:

  • HSA Investment Assets Soar to $23.8 billion, Up 52% In 2020
  • Benefitfocus State of Employee Benefits 2021 Report Highlights Importance of Benefits to Diverse Workforce
  • The Importance of Educating Employers On HSA Program FICA Savings
  • HSA Bank Health and Wealth Index Reveals Americans Remain Engaged, Continue to Adapt to Challenges Despite Ongoing Pandemic
  • Can You Use Your FSA and HSA to Buy Masks? The IRS Just Quietly Changed the Rules
  • Is Two Really a Crowd? How HSAs Crowd out 401(k) Contributions


HSA Investment Assets Soar to $23.8 billion, Up 52% In 2020

Devenir, a national leader in providing investment solutions for health savings accounts (HSAs), released the results of its 21st semi-annual health savings account survey and resulting research report. Devenir found that the number of HSAs has grown to now exceed 30 million, holding an estimated $82.2 billion in assets at the end of 2020.



Benefitfocus State of Employee Benefits 2021 Report Highlights Importance of Benefits to Diverse Workforce

Benefitfocus has released The State of Employee Benefits™ 2021 report, an analysis of employee benefit plan design and participation highlighting key trends that are shaping the future of the benefits ecosystem. It found since 2018, the percentage of Gen Zers with an HSA has more than doubled. Gen Zers, millennials and Gen Xers increased HSA contributions by 10 percent or more in 2021.



The Importance of Educating Employers On HSA Program FICA Savings

Despite continued strong growth and a steady increase in consumer demand for HSAs, some employers still struggle to see the value in offering an employer-sponsored HSA program to their employees. Oftentimes, these employers are either unaware or misinformed about the potential FICA tax savings they’re leaving on the table, among the many other benefits they and their employees are missing out on.



HSA Bank Health and Wealth Index Reveals Americans Remain Engaged, Continue to Adapt to Challenges Despite Ongoing Pandemic

HSA Bank released its fourth annual HSA Bank Health & Wealth Index℠, a report that explores trends in consumer financial and physical health. A total of 2,000 U.S. adults were surveyed about their health plan enrollment status, health practices, ability to pay for healthcare, and confidence in their own health and wealth. Each consumer received a combined health and wealth score between zero and 100. The average consumer was found to be moderately engaged in their health and wealth with an average index score of 57.4, increasing from 56.4 in 2020, highlighting that Americans are effectively navigating challenges due to the pandemic.



Can You Use Your FSA and HSA to Buy Masks? The IRS Just Quietly Changed the Rules

The money you’ve put toward your stockpile of face masks, gloves, hand sanitizer and more may end up back in your pocket soon enough. The IRS announced that amounts paid toward personal protective equipment (PPE) for “the primary purpose of preventing the spread” of COVID-19 are eligible to be paid or reimbursed through flexible spending accounts (FSAs), health savings accounts (HSAs) and health reimbursement accounts (HRAs).



Is Two Really a Crowd? How HSAs Crowd out 401(k) Contributions

Saving for retirement in a 401(k) plan has become the norm for the millions of people who have access to these defined contribution plans through work. More recently, HDHPs, and with them, HSAs, have proliferated in the workplace, giving workers yet another tax-advantaged account they can use to save for the future. However, workers have a limited amount of discretionary money from their paychecks that they can divert to savings vehicles. Even for diligent savers, contributing to a new type of savings vehicle while maintaining their savings levels in their 401(k) plans could prove to be a difficult task. So, when workers begin contributing to HSAs, is it at the expense of 401(k) contributions?




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