Employers Boost Health Savings Account Participation
More companies are adopting strategies similar to those used for 401(k) plans to encourage employees to sign up for health savings accounts (HSAs).
HSAs, which come with significant financial advantages, offer a triple tax benefit: the contributions are not taxable, the investments grow tax-free, and withdrawals for eligible health expenses are also tax-free.
A report from the Plan Sponsor Council of America, released in August, found that in 2025, almost 46% of employers automatically enrolled workers in an HSA when they selected a high-deductible health plan. This is a noticeable increase from 32% in 2019.
High-deductible health plans require individuals to pay at least $1,700 out-of-pocket before insurance coverage takes effect and $3,400 for families, as stated by the IRS for the year 2026.
“I think we’ve noticed considerable success with automatic features in retirement programs,” remarked Hattie Greenan, who leads research and communications at the PSCA. “Employers are exploring how to implement similar strategies with additional benefits.”
Auto-enrollment is deemed a best practice in workplace retirement plans like 401(k)s as a way to increase participation. PSCA data reveals that around 64% of companies had automatic enrollment for their 401(k) plans by 2025. The Secure 2.0 federal retirement law, enacted in 2022, mandates that most new 401(k) plans automatically enroll participants starting last year.
By enrolling employees in savings plans, including HSAs, employers hope to eliminate the barriers that come with a voluntary sign-up, thus increasing employee participation.
“If employees need to take the initiative to open their accounts, it complicates the process,” said Ann Brisk, a senior managing director at HSA Bank, which manages health savings accounts.
Employers Generally Contribute to HSAs
In scenarios where employers auto-enroll people into 401(k) plans, deductions are made from each paycheck—typically around 3% or 6%—to fund the retiree’s account. However, this practice is uncommon for HSA plans. Experts indicate that when companies do auto-enroll employees in HSAs, they usually also make initial contributions to the accounts. In fact, around 77% of employers provided contributions to HSAs in 2025.
This form of auto-enrollment helps employees manage their health expenses, especially as healthcare costs continue to rise. “There’s certainly a realization that healthcare can be quite expensive,” Greenan noted.
Approximately one-third of the employers making contributions (32%) added between $500 and $1,000 per employee, while 29% contributed $1,350 or more, and 22% offered $500 or less. Those funds typically go into a liquid account within the HSA, rather than directly into investments, although employees can transfer funds into investment vehicles after exceeding a certain balance.
For 2026, total contributions to HSAs for individuals are capped at $4,400, and for families, the limit is $8,750.
The 401(k) Match Trend in HSAs
Another growing trend is the implementation of a “match” benefit for HSAs, similar to what is seen in 401(k) plans. This requires employees to contribute in order to access employer funds. Approximately 10% of employers who contribute to HSAs also offer matching contributions, with an additional 7.5% considering this option.
“It’s quite like a 401(k),” Brisk explained. “It’s simple for people to grasp, and it encourages them to save in their own account.”
The rise in HSA auto-enrollment correlates with the increasing adoption of high-deductible health plans, which typically have lower premiums compared to traditional plans. In 2025, 31% of employers offering health benefits provided a high-deductible plan paired with an HSA, a significant increase from only 4% in 2005.
