Employers are leveraging the successful auto-enrollment model from 401(k) plans to boost participation in health savings accounts (HSAs). According to a report by the Plan Sponsor Council of America, nearly 46% of employers automatically enrolled workers in HSAs if they opted for a high-deductible health plan in 2025, a significant increase from 32% in 2019.
HSAs provide a three-pronged tax advantage: contributions are tax-deductible, investments grow tax-free, and withdrawals for qualified health expenses are also tax-free. The IRS has set high-deductible plan thresholds at a minimum of $1,700 for individuals and $3,400 for families in 2026.
Hattie Greenan, PSCA's director of research, noted that automatic features in retirement plans have proven effective, prompting employers to apply similar strategies to HSAs. Currently, about 77% of employers contribute to HSAs, with many providing initial funding to encourage participation.
The trend is particularly relevant as healthcare costs continue to rise, with employers recognizing the need to support employees financially. Additionally, around 10% of employers are beginning to implement matching contributions for HSAs, akin to 401(k) plans, which may further incentivize employee contributions.
This shift towards HSAs is also linked to the increasing prevalence of high-deductible health plans, which have grown from 4% in 2005 to 31% in 2025 among employers offering health benefits, according to KFF data. Overall, these developments indicate a strategic move by employers to enhance employee financial wellness through HSAs, reflecting broader trends in workplace benefits