HSA Day 2024: Empower your health. Secure your future.

Health savings accounts (HSAs) offer a powerful tool for managing healthcare expenses and saving for the future, but how you use them depends on your personal goals and financial situation. HSAs are far from a one-size-fits-all solution—they meet a variety of needs and strategies, whether you’re a spender, saver, investor, or someone who hasn’t yet tapped into your HSA’s potential. Keep reading and watch our Benefits Buzz podcast below as we celebrate HSA Day 2024 and dive into the real-life experiences of HSA users and share expert insights to help you and your employees make informed decisions that improve health and secure financial futures. 

HSAs for long-term growth: Julie’s strategy

Julie Natale, senior manager of product marketing at WEX, is an HSA investor. She views her HSA as a long-term investment vehicle rather than a short-term solution for medical expenses. Julie shared how she avoids dipping into her HSA for every medical cost by leveraging supplemental offerings from her employer, such as accident policies. For example, when her son broke his thumb, she used her accident policy instead of her HSA, allowing her to continue growing her HSA balance for future use. This strategy of balancing HSA growth with additional coverages ensures both her family’s health and long-term financial security.

Key insight: HSAs can serve as both a short-term and long-term financial tool. By exploring supplemental insurance options, you can preserve your HSA for future growth while still covering unexpected medical expenses.

Balancing spender and saver roles: Suz’s story

Suz Svare, readiness manager for customer service at WEX, shared her experience as both a spender and saver with her HSA. With a growing family and ongoing medical needs, including mental health treatments and pregnancy-related care, Suz frequently taps into her HSA to cover immediate expenses. However, she also balances contributions between her and her husband’s HSAs, both funded by their employers, and considers how to best allocate funds between current needs and future savings.

Key insight: For families managing multiple HSAs, it’s important to track where funds are allocated and consider how to optimize both short-term spending and long-term saving. Suz’s story highlights the flexibility of HSAs in handling ongoing medical costs while still providing an opportunity to save.

Newcomers navigating HSAs: Lance’s learning curve

Lance Taylor, customer marketing manager at WEX, represents those who are new to HSAs. Although he has had an HSA for some time, Lance is still discovering the full spectrum of its benefits, especially in terms of saving and investing. His journey supports the importance of education when it comes to utilizing HSAs to their full potential. As a newcomer, Lance is learning how to balance spending on immediate healthcare needs with the long-term advantages of saving and investing within the HSA.

Key insight: HSAs can feel overwhelming for new users. Employers and financial advisors can play an important role in educating employees about the tax advantages, investment options, and best practices for managing HSA funds effectively.

Expert advice: Jason’s perspective

Jason Cook, vice president of healthcare emerging markets at WEX, brought a seasoned perspective to the discussion. Having used an HSA for 17 years, Jason shared how his approach has evolved. Initially, he didn’t engage with his HSA account, but later realized its value as his balance grew. Now, Jason emphasizes the importance of setting goals and regularly engaging with your HSA, whether for savings, investments, or immediate expenses. He also pointed out that many HSA holders have relatively low balances, with around 50% of accounts holding less than $500.

Key insight: The key to maximizing your HSA lies in consistent engagement and setting financial goals. Even if you’re not in a position to invest right away, understanding your cash flow and contributing regularly can help you build a healthy balance over time.

Flexibility is key: Navigating life stages

Throughout our episode, one consistent theme emerged: flexibility. Whether you’re a spender, saver, investor, or newcomer, HSAs offer options that can adapt to your changing life circumstances. For example, Suz Svare, who is expecting a child, shared how her HSA strategy has shifted due to increased medical costs. While this year is focused on spending, she plans to shift toward saving once those expenses decrease.

Key insight: HSAs offer adaptability for various life stages. Whether you’re dealing with immediate expenses or planning for long-term growth, your HSA can evolve with your financial needs.

HSAs as a retirement vehicle

An often-overlooked aspect of HSAs is they’re not just for medical expenses forever. Once you turn 65, your HSA funds can be used for any expense, not just healthcare, while still retaining the tax advantages. This makes HSAs a dual-purpose tool—providing both immediate financial relief for healthcare expenses and long-term retirement benefits.

Small contributions add up

One important point raised during our panel was the power of starting small. Consistent, modest contributions can build a financial cushion for unexpected medical expenses over time. As Julie Natale highlighted, employer contributions can compound these benefits, helping to grow your HSA more quickly.

Key insight: Even small contributions make a difference. By contributing regularly, you can prepare for medical costs and long-term financial goals, all while benefiting from the tax advantages.

The power of education

Education is key to maximizing HSA potential. Several panelists, including Lance and Suz, expressed that they wished they had understood HSAs’ benefits earlier. Employers can play an essential role in educating employees on how to use their HSAs effectively, from tax advantages to investment opportunities.

Key takeaways:

• Start small: Consistent small contributions add up over time, helping build a financial cushion for medical expenses.
• Think long-term: HSAs aren’t just for short-term needs; they can be powerful tools for retirement savings.
• Flexibility is key: Life happens, and your HSA can adapt to your changing financial needs—whether you’re saving, spending, or investing.
• Maximize contributions: If possible, aim to contribute the maximum each year to build a significant HSA balance.
• Employer education: Employers should focus on educating employees about the benefits and potential of HSAs for long-term financial planning.

HSAs are versatile tools that can be personalized to meet your unique financial needs. Whether you’re using them to cover healthcare costs or as part of your retirement plan, understanding how to optimize your HSA can lead to significant financial security.

Explore our wide variety of HSA tools designed to improve your HSA knowledge and offer high-quality resources for your employees. Discover some of our top HSA resources below:

• HSA Misconceptions
• Benefits Engagement Guide
• My HSA Planner
• Open Enrollment Toolkit
• Eligible Expense List

Connect with us on social media to access even more #HSADay content, including HSA tips, resources, and inspiring stories. And don’t miss out on our HSA Day page to learn more about the advantages of an HSA!

The information in this blog post is for educational purposes only. It is not legal or tax advice. For legal or tax advice, you should consult your own legal counsel, tax and investment advisers. 

WEX receives compensation from some of the merchants identified in its blog posts. By linking to these products, WEX is not endorsing these products.