A recent report by the Employee Benefit Research Institute (EBRI) analyses how participants are utilizing their health savings accounts (HSAs), finding that the benefit could have mixed effects on healthcare services.
The “Fast Facts” analysis finds that HSA plans tended to have more inpatient admissions and days rather than preferred provider organizations (PPO). HSA participants were also likelier to file fewer prescriptions as compared to PPO enrollees.
According to EBRI, among individuals with no health conditions, HSA plans resulted in fewer emergency department visits relative to PPO enrollees, fewer specialist visits, and fewer prescription drug fills, while visits to primary care providers increased.
On the other hand, among enrollees with two or more health conditions, there were no instances of decline in health care services among those in HSA plans compared to PPO enrollees. Instead, those with two or more health conditions experienced increases in inpatient admissions, inpatient days, and primary care office visits.
On the spending side, HSA plan enrollees tended to spend $61.30 more on inpatient services per member per year (PMPY) compared to PPO employees, EBRI found. On primary care visits, they spent $4.20 more PMPY. Spending on emergency department visits was $19.10 lower PMPY among HSA plan enrollees, and spending on specialist visits was $4.60 lower.
EBRI commissioned the research to understand differences in deductibles, and whether HSAs could impact the use of healthcare services and overall spending by participants.
Ultimately, EBRI reports that HSA plan enrollment had no impact on total spending — there was no statistically significant difference in overall spending between HSA plan and PPO enrollees.
HSAs have long been touted for their savings benefits, both for healthcare services and retirement. Availability of the tools increasingly grows as it becomes more popular with younger working generations—a separate analysis by EBRI found that Millennials and Gen Z participants represent 60% of all investment accounts.
This study was conducted through the EBRI Center for Research on Health Benefits Innovation (EBRI CRHBI), with the funding support of the following organizations: Aon, Blue Cross Blue Shield Association, ICUBA, JP Morgan Chase, and PhRMA.
SEE ALSO:
- Broadridge 360: Medicare & HSAs — the Perfect Pair in Retirement Planning
- What Younger Generations Potentially Miss With HSAs and How Employers can Help
- How Younger Generations are Taking Advantage of HSAs
Amanda Umpierrez is the Managing Editor of 401(k) Specialist magazine. She is a financial services reporter with over six years of experience and a passion for telling stories and reporting news. Amanda received her degree in journalism and government and politics at St. John’s University. She is originally from Queens, New York, but now resides in Denver, Colorado with her partner. In her free time, Amanda enjoys running, cooking, and watching the latest drama show.
