As the Cadillac tax draws closer to assessment, many businesses are growing more cautious regarding employee HSA contributions. Since 2014, HSA enrollment has increased 10.7%, according to new survey data from United Benefit Advisors. This large-scale survey of employer-sponsored health plans found that overall enrollment in HSAs is increasing, while employer contributions are not.
The Cadillac tax comes into effect January 1, 2020, but is already demonstrating significant influence on employee benefits planning – particularly with regard to HSA. Looking at HSA performance by industry, the UBA survey finds:
- Government employers offer the most generous contributions at an average $834 for singles and $1,636 for families.
- Families and individuals in the hospitality and foodservice industries received less than $200 in employer contributions.
- While most industries have seen steady growth in HSA enrollment, the utilities sector not only has the lowest enrollment at 3.2%, but is also the only industry to see a decline in enrollment from three years ago.
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