Are You Spending your Health Savings Account Money Wisely?
March 15, 2019
Consumers are spending HSAs on everyday medical expenses not considering emergencies, hospital visits, and long-term savings.
An annual HSA Report, according to Lively, broke down expenses as follows:
- Doctor visits and services (41 percent)
- Prescription drug costs (25 percent)
- Dental care (9 percent)
- Vision and eyewear (5 percent)
- Chiropractor (5 percent)
- Lab work (4 percent)
- Other (4 percent)
“Health care costs continue to squeeze Americans, rising faster than wages can keep up,” says Alex Cyriac, co-founder and CEO of Lively. “This forces individuals and families to use their HSA funds for everyday necessities—such as preventative visits, dental or vision care, and prescription drugs—rather than saving those funds to create a safety net for health care costs down the road and into retirement.”
This illustrates the need for training if you have an HSA for your employees. Let us help you to assist them in planning the distributions and the opportunities for long-term savings.