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As open enrollment season gets underway, you may find yourself having to decide whether a health savings account should be part of your 2023 medical coverage. These tax-advantaged accounts let users save for medical expenses.
Many companies will soon — or already have started to — hold their annual open enrollment period for workers to pick their health plan for next year, among other employer-sponsored benefits. Some of those firms will offer so-called high-deductible health plans, which are what HSAs are tied to, as an option for coverage.
“For the most part…an [HSA eligible] plan is the most cost-effective way to get health insurance,” said certified financial planner Carolyn McClanahan, founder of Life Planning Partners in Jacksonville, Florida.
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Yet fewer companies have been offering them: In 2021, an estimated 17% of firms with health benefits offered high-deductible plans, down from 20% in 2020 and 26% in 2019, according to research from the Kaiser Family Foundation.
“There was a trend for employers to offer only high-deductible plans,” said Lisa Myers, director of client services and benefits accounts for consultant Willis Towers Watson. “But they’ve actually backed up a little … most employees do have a choice in what to enroll in.”
Higher deductibles mean lower premiums
An HSA eligible, high-deductible health plan for 2023 will come with an annual deductible — the amount you pay for covered medical costs before insurance kicks in — of at least $1,500 for an individual plan and $3,000 for families. However, these plans often have lower monthly premiums compared with coverage options that are not