Employees’ Concern with Covering Health Care Costs in Retirement Intensifying

ConnectYourCare’s 2018 Trends Report Reveals HSA, FSA, and HRA Analytics

Baltimore, MD, February 20, 2018

ConnectYourCare (CYC) – a national leader in consumer-directed health care account solutions (CDH) – recently released a report showing more than two thirds (68.7%) of employees identified health care expenses in retirement as a greater concern than lifestyle or other retirement expenses; this rate is up more than 5% from the past year.

CDH Account Trends: Tax-Advantaged Account Usage, Outlook and Perceptions – 2018 Report is based on two separate studies of over 40,000 survey respondents and data from over one million accounts across the nation. The report analyzes health care account usage trends, contribution and spending patterns, trends by account holder age, and account holder perspectives on Health Savings Accounts (HSAs), Flexible Spending Accounts (FSAs) and Health Reimbursement Arrangements (HRAs).

Key highlights from the report include:

  •     44.9% of respondents chose to enroll in an HSA as a savings vehicle for future health care needs, over more immediate benefits like tax savings and lower premiums. This rate is up from 40.5% in our 2017 report.
  •     62.9% of HSA account holders who leverage mutual fund investment options do so for shorter term goals, intending to withdraw investments for health care needs prior to retirement.
  •     For 45.7% of FSA respondents, the number one change they would like to make to their account would be to decrease the need to submit documentation for eligible expenses, showcasing that this is a major industry-wide issue.

“Our studies show an increasing health account literacy among employees, especially as health care and tax reform grips our collective attention on the national stage,” said Trisha Paine, Chief Marketing Officer at ConnectYourCare. “While the data shows that employee knowledge is trending in the right direction, it also reinforces the importance of building and maintaining strong health to wealth communications programs that cultivate employee education and enforce the connection between those two important concepts.”

Download the full report, CDH Account Trends: Tax-Advantaged Account Usage, Outlook and Perceptions – 2018 Report at https://www2.connectyourcare.com/2018-CDH-trends-report.

Paine will present this research, alongside Visa’s Jim Meduna, who will discuss Visa’s 2017 Flexible Spending Account and Health Savings Account Consumer Research study, during The Power of Health Care Analytics, a free webinar on February 22, 2018. Register at https://www2.connectyourcare.com/2018-feb-trends-webinar.

About ConnectYourCare

As one of the largest and most responsive providers of health care savings accounts and award-winning solutions, our approach to consumer-directed health care is rooted in creating better, more efficient connections among the people who provide benefits, the people accessing services, and the people who deliver services. Blue chip organizations across the country turn to ConnectYourCare for our highly rated customer service and best-in-class member experience, advanced educational tools for better-informed choices, acceleration of savings with ROI efficiencies and simplification of processes with brilliant customer-focused solutions. There is a unique solution for every company and employee, and we won’t stop working until we connect you with the perfect one. For more information, visit ConnectYourCare.com or follow us on Twitter @ConnectYourCare.

Disclaimer: ConnectYourCare does not provide tax or legal advice. This information is not intended and should not be taken as tax or legal advice. Any tax or legal information in this notice is merely a summary of ConnectYourCare’s understanding and interpretation of some of the current tax regulations and is not exhaustive. You should consult your tax advisor or legal counsel for advice and information concerning your particular situation before making any decisions.
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