Other Factors While affordability and retirement planning still play a key role, portability has shown a marked rise as a decision factor in comparison with other reasons for choosing an HSA.
In its February study this year, portability was cited as one of the most important reasons for choosing an HSA by a large plurality of respondents.
Equally as important, portability was cited across all age groups as the most important issue.
According to Dr. Kenneth E. Lehrer, a Houston economist who has been studying HSAs since their enactment, “this trend reflects a larger wave of changes affecting the American economy.”
“Companies of all sizes are not capable of sustaining the double-digit growth in healthcare costs. They are passing more and more of the cost onto employees who in turn are becoming more aware of their own vulnerability,” he added.
Corporations Reneging On Retirement Promises
“Given the recent spate of major corporations that have modified or dropped their retirement plans, having control of one’s retirement account is gaining more importance,” Lehrer said in reviewing the data.
Important Factors in Choosing An HSA
As can be seen from the above chart, portability and retirement planning are equally weighted in the minds of the 1,000+ respondents of the latest survey, with only affordability rated higher. In the survey’s analysis, responses are weighted up to a maximum score of 50.
Trend In Importance Of Portability
In previous surveys, portability has been a lower priority but has gained prominence in each succeeding polling as shown in the above chart.
HSAs Have Two Parts HSAs are made up of two parts, a high-deductible healthcare insurance plan and an independently managed custodial account to pay medical bills and build a retirement nest egg.
The survey also showed a high degree of selectivity on the part of respondents as to where they put custodial accounts.
Respondents reported that they shopped around for where to place their custodial accounts and were more likely to put it with a custodian recommended by their insurance provider.
At the same time, as ISI’s President JoAnn M. Laing points out, "account holders are telling us that where they place their accounts is very important."
“We have also seen in other studies that fees and transaction charges are wearing on many of them,” she said.
“At the same time, we are seeing a marked reduction in overall fees and charges coming from custodians as they react to their depositors’ comments,” she added.
For more details about this survey, go to www.hsafinder.com.
Dr. Lehrer can be reached at drken@lehecoserv.com.
