Conduent Health Data Finds 57% of Eligible Employees Use a Health Savings Account

by Conduent Business Services LLC

HSA participation by age

While HSA participation did not differ significantly by age group, once employees hit age 35, their annual contributions jumped by more than 35%. Average annual contribution amounts among employees between 35 and 65 remained similar regardless of age group.

HSA participation by income

Of those who contributed to an HSA, more income doesn’t mean increased HSA participation, but it does mean greater contribution amounts

According to new health benefit data from Conduent Incorporated (Nasdaq: CNDT), a global technology-led business process solutions company, 57% of people enrolled in a high deductible healthcare plan (HDHP) are contributing to health savings accounts (HSA), which can provide tax savings and cost savings on day-to-day OTC and other medical expenditures. Many could be saving more for future health expenses while reducing tax bills by increasing their annual contributions, according to data from more than 200,000 employees across four industries.

“We know that navigating health and wealth benefit options during open enrollment can be challenging and that employees need to better understand their benefits. Ideally, employees are also using HSAs like a retirement savings account, to prepare for health costs during retirement,” said Michelle Hernandez, Vice President for Human Capital Solutions at Conduent. “Among our clients, we’ve seen participation and engagement rates increase with more consistent and targeted communication, in addition to using advanced technology to facilitate the open enrollment process.”

According to the data:

While HSA participation did not differ significantly by age group, once employees hit age 35, their annual contributions jumped by more than 35%. Average annual contribution amounts among employees between 35 and 65 remained similar regardless of age group. The 2022 maximum annual contribution is $3,650 for individuals and $7,300 for a family.

Of those who contributed to an HSA, more income doesn’t mean increased HSA participation, but it does mean greater contribution amounts.