It's Open Enrollment Season. Have You Taken a Good Look at an HSA?
For high-income investors who are maxing out other tax-sheltered accounts, the high-deductible healthcare plan/HSA combo is close to a no-brainer.
In one of the biggest changes to employee benefits in decades, high-deductible healthcare plans are appearing on more and more benefits menus, and these plans are experiencing dramatic growth in enrollment as a result. Thirty percent of workers were covered by a HDHP in 2019, according to data from the Kaiser Family Foundation; in 2014 20% of workers were covered by an HDHP.
For some employees, the decision to participate in an HDHP is a choice; it appears alongside a traditional healthcare insurance plan like a preferred provider organization. But for some, the HDHP is their sole health-insurance option.