Week ending February 8th, 2019 The retirement industry has been touting health savings accounts (HSAs) as a vehicle for saving for retirement health care costs, but a recent survey indicates HSA-holders are spending the vast majority of their account assets on current medical expenses. This calls into question whether it is feasible to expect employees to save in their HSAs for the long term. Or perhaps it’s just a matter of developing a new strategy to help employees tie HSAs to long-term savings. Either way, new HSA product offerings are coming out, some with a focus on investing account assets. With broader health care benefits, employees are reporting confusion and lack of resources from plan sponsors about their plans, which could lead to higher long-term health care costs. And, according to employees polled, not only health insurance, but critical illness insurance, cancer insurance and long-term care insurance can contribute to their financial security. This edition of PLANSPONSOR Weekend focuses on HSAs and health care benefits.
Editor's choice Benefits Study Shows Where HSA-Users Spend Their Savings According to a study from Lively, the average health savings account (HSA)-holder spent 93% of his account savings on household health care costs last year. This leaves little to save for the long-term.Read more > Products Voya Launches Health Savings and Spending Account Solutions Voya health savings account (HSA) account holders with $2,000 or more in their HSA may choose to actively manage their account and select their investment options within their HSA.Read more > Products Franklin Templeton and Principal Each Make HSAs a Priority Franklin Templeton is rolling out R6 shares for health savings accounts, while Principal has announced its first collaboration with an HSA provider.Read more > Benefits Lack of Education Could Result in Greater Long-Term Health Costs Only 33% of employees surveyed by Maestro Health say they completely understand the health coverage offered through their employers, and 62% indicated they feel their employer does not serve as a resource for their health care-related questions.Read more > Benefits Employees Report a Wide Range of Benefits Contribute to Financial Security Research findings suggest that employers could do a better job of educating employees about benefits that may improve their overall financial security.Read more >
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