HSA Balances Continue Rising Streak
Employees are raising contributions to their health savings accounts (HSAs), leading to a rise in average account balances for the third consecutive year, reports new research from the Plan Sponsor Council of America (PSCA).
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PSCA’s 2025 HSA Survey, sponsored by HSA Bank, found that 20% of participants are investing their HSA savings, up from 18% last year. Three-quarters of employees surveyed have made contributions to their HSA accounts, with average contributions totaling $2,802 in 2024. This is an increase from $2,609 in 2023 and $2,323 in 2022.
The average account balance at the end of 2024 came in at $6,489, a rise from $6,165 in 2023 and $6,130 in 2022.
PSCA’s research shows that the number of employers offering investments is also growing, up by 12% over a two-year period. Further, three-quarters of employers are contributing to HSAs with nearly 55% providing a set amount per coverage level, while close to 28% offer a set amount per employee, according to PSCA.
Forty-three percent of organizations are also automatically enrolling participants in a health savings vehicle if they enroll in an HSA-qualifying health option. Lastly, over 60% of large organizations said they reward employees for health and wellness program participation, with half doing so by contributing to the HSA.
“As more people seek ways to manage rising healthcare costs, employers have an opportunity to increase engagement with HSAs to support both short-term healthcare expenses and long-term financial health,” said Kevin Robertson, chief growth officer of HSA Bank, in a statement. “By communicating with employees in multiple ways, contributing to accounts, providing automatic enrollment and rewarding healthy behaviors, employers can help close knowledge gaps and support informed health and wealth decisions.”
Despite increases in participation and contributions, PSCA observes how education among employees remains a concern for organizations. Among the 62% of employers who offer HSAs, many continue to only offer education on the savings vehicle during open enrollment season, and just one-third offer education on the benefits. Less than one-in-three HSA plans encourage participants to keep track of their balances and retirement accounts, PSCA reports.
PSCA’s seventh Annual HSA survey, sponsored by HSA Bank, incorporates responses from nearly 600 U.S. employers and provides benchmarking data on company-sponsored HSA programs including participation rates, employer contribution formulas, investments and design and administration considerations. More information on the findings can be found here.
Amanda Umpierrez is the Managing Editor of 401(k) Specialist magazine. She is a financial services reporter with nearly a decade of experience and a passion for telling stories and reporting news. She is originally from Queens, New York, but now resides in Denver, Colorado.
