Health Savings Accounts (HSAs) are becoming an increasingly important part of employees’ healthcare and financial strategies.
According to the Plan Sponsor Council of America’s 2026 HSA Survey, 83% of employees contributed to an HSA in 2025, up from 73.4% in 2024. Employees are also accumulating larger balances, with the average HSA balance reaching $6,477 at the end of 2025.
The trend signals more than growing participation. Employees are beginning to recognize the HSA as a long-term financial tool, not simply an account for paying current medical expenses.
Why HSAs Matter
HSAs offer a unique combination of tax advantages:
- Contributions can be made on a pre-tax basis.
- Investment earnings can grow tax-free.
- Withdrawals for qualified medical expenses are tax-free.
- Unused funds roll over from year to year and remain with the employee.
Yet education remains a challenge. Nearly two-thirds of employers identified employee education as a primary HSA concern.
What Employers Can Do
As HSA participation grows, employers have an opportunity to help employees get more value from the benefit:
- Educate year-round. Don’t limit HSA communication to open enrollment.
- Explain the long-term opportunity. Help employees understand the potential to save and invest HSA dollars for future healthcare expenses.
- Make participation easy. Automatic enrollment and employer contributions can remove barriers and encourage engagement.
- Connect HSAs to financial wellness. Healthcare costs and retirement planning are increasingly interconnected.
The Bottom Line
The jump to 83% participation shows that employees are engaging with HSAs. The next step is helping them understand how to use these accounts strategically.
For employers, the opportunity isn’t simply to increase HSA participation; it’s to help employees turn participation into greater financial confidence and long-term value.