Newsdash Insight on Plan Design & Investment Strategy from PLANSPONSOR
July 15th, 2015
Benefits & Administration
HSAs Woefully Underutilized, HelloWallet Finds
Given that there is little information on how health savings account (HSA) participants make use of these savings vehicles, HelloWallet studied more than 400,000 accounts held by UMB Bank, one of the largest HSA recordkeepers in the U.S., and found these plans are grossly underutilized.Read more >
The average health savings account (HSA) balance increased 37% in 2014, from $1,408 to $1,933, according to the Employee Benefit Research Institute (EBRI). For those under the age of 25, balances averaged $655, and for those age 65 or older, they were $5,016. Today, 17 million policyholders and their dependents are covered in 13.8 million accounts holding $24.2 billion in assets as of year-end 2014.Read more >
In light of the recent Supreme Court decision legalizing same-gender marriage, Mercer surveyed HR and business professionals about their intentions regarding domestic partner coverage. Employers that offer domestic partner coverage to same-gender couples only are more likely to drop it than those offering it to all couples, Mercer found. Of those plan sponsors that offer domestic partner coverage to same-gender partners only, 8% have already dropped it in states that legalized same-gender marriage before the ruling. Another 23% say they will drop it for this year’s open-enrollment period, and another 23% will consider dropping it in two to three years.Read more >
Products, Deals & People
Measuring Plan Health Can Boost Retirement Readiness
MassMutual Financial Services has published an electronic book for plan sponsors and advisers to help them improve retirement plan outcomes titled “Precisely, Driving Greater Retirement Readiness through MassMutual’s PlanALYTICS.” A MassMutual analysis found that participants at employers who participated in the PlanALYTICS program increased their deferral savings rates by 17.1% compared to 1.1% of those not enrolled in the program.Read more >