Most people who say they understand HSAs really don't

This article points out a problem we have Health Saving Accounts, most people do not understand them well enough to make an informed decision. The triple tax savings and the flexibility of the account are key components and need to be communicated. Unfortunately it seems that most employers and brokers only discuss the reduced premiums. If you would like more information on HSA's, please contact me at RayWard@YourLegacyBenefits.com or visit the US Treasury site for details.

Wednesday, June 3, 2009 - post on blog: http://www.blogbythenumbers.com/2009/06/most-people-who-say-they-understand.html

That’s the word from Guardian Life Insurance. New research from the company shows that while 59% of consumers know of HSAs, most of those folks don’t understand that contributions and qualified withdrawals are tax free, 52% and 55% admitted as much respectively. Sixty percent said they didn’t know they can take their HSA with them if they switch jobs.

Guardian used Opinion Research Crop to survey 1,000 adults last December. Overall, just one in seven said they owned an HSA.

The knowledge gap is important, according to Guardian’s Tim Bireley, because HSAs coupled with HDHPs are a good fit for both employers and workers looking for ways to cope with expensive medical costs and health insurance bills.

His company thinks they’ve found a way to move the ball forward by pairing a critical illness program with an HSA/HDHP. That deals with a primary consumer concern about the products. The logic is that since workers are scared they won’t be able to find the money if illness strikes before they’ve booked a decent balance in the account, give them a CI policy to bridge that gap in the event they do get sick.