Thursday, September 29, 2005

HRAs and HSAs Not Yet Popular

Benefitnews.com - Information for HR and Benefit Directors and other Employee Benefit Plan Sponsors and Advisers

According to a recent survey of 2,995 employers by the Kaiser Family Foudation and the Health Research and Educational Trust, only 4% of employers with health benefits offer an HRA or an HSA to their employees. From BenefitNews.com...

About 1.6 million workers are enrolled in HRAs, representing 2% of covered workers. Among workers with access to an HRA, 25% enrolled in it. The average annual employer contribution to HRAs is $3,872 for single coverage and $7,538 for family coverage.

Meanwhile, 800,000 workers are enrolled in HSA-qualified health plans, representing 1.8% of covered workers. Just 15% of workers with access to this type of plan enrolled in it. The average annual employer contribution to an HSA-qualified plan is $2,270 for single coverage and $6,245 for family coverage. Roughly 67% of employers offering an HSA-qualified plan contribute to workers' accounts.

It appears that part of the reason for the low enrollment may be due to a lack of incentive. According to Gary Claxton, VP at the foundation, "HRAs don't really offer much savings to employers yet. The HSA-qualified plans, when you consider the contributions that the employers make to the HSAs, are a little bit cheaper than traditional health insurance."

1 comment:

  1. I agree HRAs and HSAs are not popular yet but I hope they will become soon as they are great ways to receive affordable health coverage.

    ReplyDelete

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