Health Savings Accounts And Consumer-Directed Health Plans Grow As Valuable Financial Planning Tools

posted by AHIP

on April 12, 2018

Key Takeaways

As of January 2017, 52 health insurance providers reported 21.8 million HSA/CDHP enrollees, up from 20.2 million in 2016.


The 45 plans participating in both the 2016 and 2017 surveys saw a 9.2 percent increase in their HSA/CDHP enrollment.


The majority of health insurance providers reported offering additional tools to help members manage their health and finances, including online access to account information, health and wellness resources, and cost and quality data.


Additional action now can further promote American’s health, financial security, and peace of mind.


What is an HSA?

Health savings account (HSA) plans offer individuals a way to save money while managing their health care costs. They combine a consumer-directed health plan (CDHP) with a tax-favored savings account. Money spent from this account on health care costs is not subject to federal taxes, but account contributions are limited: in 2018, an individual may contribute $3,450 and a family may contribute $6,850. The funds may only be used for qualified medical expenses.

The funds in the HSA are owned by the member, and may be rolled over from year to year.

Increasingly, these accounts offer additional tools to empower members to make affordable health care choices and control their health care dollars. They include tools to help members manage their HSA savings, monitor their health, and get additional information about health care costs and quality.

HSAs were authorized by the Medicare Prescription Drug Improvement and Modernization Act of 2003 and entered the market in January 2004. Since then, AHIP has conducted an annual survey to understand how Americans are enrolling in HSAs and the kinds of tools available to help them improve their health and financial stability.