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A summary of the articles included in the August 2022 edition:
- 2021 Devenir & HSA Council Demographic Survey Findings
- ACA’s Maximum Out-of-Pocket Limit is Growing Faster Than Wages
- Might We See Some HSA Opportunity in an Upcoming Lame-Duck Session?
- Premium Impact of Expanding Pre-Deductible Coverage to Chronic Disease Management Medications in HSA-Eligible Health Plans
- More than Half of Americans Have Low Health Insurance Literacy
- HSA Trends We’ve Identified To Help You Boost Participation
2021 Devenir & HSA Council Demographic Survey Findings
Devenir and the American Bankers Association’s Health Savings Account Council released the results of the 2nd annual Devenir & HSA Council Demographic Survey and resulting research report. The survey found that the 32.5 million health savings accounts that existed at the end of 2021 helped cover an estimated 67 million Americans.
- Over 67 million covered by an HSA. Devenir estimates that the 32.5 million health savings accounts as of December 31st, 2021 helped cover 67 million people.
- Millennials embrace HSAs. Younger consumers have embraced health savings accounts, with about 1 in 5 Americans in their 30s having an HSA.
- Older Americans continue to accumulate meaningful HSA savings. Accountholders older than 50 years old held almost $53 billion in their accounts at the end of 2021 (up 19% from the year prior), with an average balance of $4,758.
- HSAs utilized across income spectrum. 78% of health savings accountholders have a household income of less than $100,000.
ACA’s Maximum Out-of-Pocket Limit is Growing Faster Than Wages
An important component of most private insurance plans is the out-of-pocket (OOP) limit. These limits place an annual cap on the amount of cost-sharing (deductibles, copayments, and coinsurance) an enrollee can face for in-network covered services each year. By doing so, OOP limits provide significant financial protection for individuals who face substantial health care use in a year. Even so, these limits are typically several thousand dollars for covered workers enrolled in single coverage; families in which multiple people have health spending may face significant cost-sharing before reaching the limit.
This analysis uses economic projections to look at how the maximum allowable OOP limits may change for different types of private health insurance plans over the next decade. We show that, based on current projections, the ACA’s maximum out-of-pocket limit is likely to grow faster than wages and salaries, and is also expected to grow faster than the maximum out-of-pocket limit for HSA-qualified health plans.
Might We See Some HSA Opportunity in an Upcoming Lame-Duck Session?
I’ve spent a lot of time this week talking to Capitol Hill staffers about potential items to add to lame-duck legislation after the election.
One of the benefits emerging from the pandemic is near universal comfort with the technology to stage virtual meetings. It’s an effective way for groups to conduct short meetings with elected officials, their legislative aides, and committee staff members to discuss public policy. I’m participating in about a dozen such meetings this week and next to discuss some small changes in the rules around Health Savings Account eligibility. These small changes could have an enormous impact on hard-working American families who find it increasingly difficult to make ends meet in the current economic climate.
Premium Impact of Expanding Pre-Deductible Coverage to Chronic Disease Management Medications in HSA-Eligible Health Plans
IRS Notice 2019-45 allows health savings account (HSA)-eligible health plans the flexibility to cover 14 medications and other health services used to prevent the exacerbation of chronic conditions prior to meeting the plan deductible. There is limited evidence on the impact of expanding pre-deductible coverage on insurance premiums. In this EBRI Issue Brief, we use claims data to quantify the effect of expanding pre-deductible coverage to 116 drug classes used to manage chronic conditions.
More than Half of Americans Have Low Health Insurance Literacy
Many Americans may have low health insurance literacy, as up to 77% of people were confused by basic health insurance terms, such as coinsurance, copayment, and deductible, according to a Forbes Advisor survey.
The online survey gathered data from 2,000 Americans with health insurance between June 29 and July 1, 2022.
The majority of respondents (85%) reported that they were very or somewhat happy with their health insurance plan. However, many individuals had knowledge gaps regarding critical health plan-related topics, indicating low levels of health insurance literacy.
The survey also revealed that Americans have misconceptions about health savings accounts (HSAs).
HSA Trends We’ve Identified To Help You Boost Participation
Health savings accounts (HSAs) have a variety of short-term and long-term perks for participants. As an employer, it can be challenging to determine how to best position these accounts since employee needs can vary. What resonates with one employee might not resonate with all.
To maximize participation, how much should employers be contributing to HSAs? What’s the employer contribution sweet spot? In the second post in Wex Health’s blog series highlighting benefits trends they’ve identified, they show you what they’ve learned to help you and your employees get the most from these accounts.