Health Savings Accounts: A Growing Opportunity for Employers and Employees
Employers invest significant resources in offering competitive benefits, yet some of the most valuable benefits remain underutilized because employees do not fully understand them. Health Savings Accounts (HSAs) are a prime example.
Over the past decade, HSAs have evolved from a way to pay qualified medical expenses into an important component of financial wellness. Millions of Americans now use HSAs to cover healthcare costs, build emergency savings, and prepare for future medical expenses. As adoption continues to grow, employers have an opportunity to increase the value of their benefits program through education, communication, and strategic planning.
HSA Growth Continues to Accelerate
Health Savings Accounts continue to gain momentum.
According to Devenir's 2025 Year-End HSA Market Research Report, Americans now hold nearly 41.7 million HSA accounts with approximately $174 billion in assets. Nearly $85 billion of those assets are invested, reflecting a growing trend among account holders to view HSAs as a long-term financial resource rather than simply a reimbursement account.
The fastest-growing segment of HSA users also includes younger employees, many of whom are looking for benefits that support both their immediate financial needs and their long-term financial goals. As organizations compete for talent, benefits that promote financial wellness can play an important role in both recruiting and retention.
For employers, the trend is clear. Employees increasingly value benefits that provide flexibility, ownership, and long-term financial advantages. An HSA checks each of those boxes, but only if employees understand how to use it effectively.
Why HSAs Deliver More Value Than Many Employees Realize
Offering an HSA-compatible health plan is only part of the equation.
Under current IRS rules, HSAs offer three significant tax advantages: eligible contributions are tax deductible, investment earnings grow tax free, and withdrawals for qualified medical expenses are tax free.
Many employees understand that an HSA can help pay for doctor visits and prescriptions. Fewer realize that unused balances roll over from year to year, the account belongs to them even if they change employers, and HSA dollars can be invested for future healthcare expenses.
Qualified medical expenses also extend well beyond office visits and prescription medications. Depending on IRS requirements and individual circumstances, HSA funds may be used for a wide range of medically necessary products and services. Employers can help employees better understand these opportunities by providing educational resources, including tools such as Highmark's Truemed marketplace.
Benefits that employees understand are benefits they value. The more employees understand their HSA, the more likely they are to appreciate the investment their employer is making in their financial well-being.
HSA Strategies That Help Employees Maximize Their Benefits
Organizations that realize the greatest value from their benefits programs recognize that employee education should continue long after open enrollment ends.
Consider incorporating HSA education throughout the year by:
Explaining both the immediate and long-term advantages of contributing to an HSA.
Sharing practical examples that demonstrate how employees at different life stages can benefit.
Reminding employees to review their contribution levels as IRS limits change.
Educating employees about the broad range of qualified medical expenses.
Providing easy access to trusted educational resources and decision-support tools.
Consistent communication helps employees make informed decisions, increases confidence in their benefits, and strengthens the overall value of an organization's benefits program.
HR Action Plan for Better HSA Engagement
Take a fresh look at your HSA communications by asking a few simple questions:
Do employees understand why an HSA is different from other healthcare accounts?
Are they aware that unused balances roll over and remain theirs if they change jobs?
Do they understand the long-term value of investing HSA funds?
Are they aware that qualified medical expenses extend beyond traditional healthcare services?
Is HSA education available throughout the year, or only during open enrollment?
Answering these questions can help identify opportunities to improve employee engagement and increase appreciation for one of the most valuable benefits in your organization's portfolio.
Highmark Perspective
An HSA is more than a healthcare spending account. For many employees, it can become one of the most valuable financial tools they own.
Organizations cannot fully realize the value of a benefit employees do not understand. By helping employees make informed decisions throughout the year, employers strengthen financial wellness, reinforce the value of their benefits package, and support recruiting and retention in an increasingly competitive workforce.