Why It Matters
The Congressional Research Service (CRS) has found that health savings accounts (HSA) are mostly funded by employer contributions even though individuals themselves can also make contributions to their own HSAs. The report, which draws on IRS tax-return data from 2004 to 2022, also found that the share of returns reporting employer contributions generally rose with adjusted gross income, and that growth in average employer contributions may have been more concentrated among higher-income individuals.
The Big Picture
From 2004 to 2022, aggregate HSA contributions totaled $337.4 billion, according to CRS. Annual employer contributions rose from $17.6 million to $35.5 billion over that period, while individual contributions rose from $207.8 million to $6.6 billion.
In 2022, about 12.9 million tax returns (8%) reported employer contributions, compared with about 2.1 million (1%) reporting individual contributions, out of 161.3 million total returns filed, and average individual contributions ($3,129 per return) still exceeded average employer contributions ($2,747 per return), though the gap narrowed from $1,038 to $383 over the period, with the report noting that contribution amounts are not adjusted for inflation.
The Bottom Line
The Congressional Research Service (CRS) report says employer-related funding "has become an increasingly prominent component of overall HSA financing" and that its trends may inform congressional consideration of proposals to modify health savings account eligibility, contribution limits, or the tax treatment of contributions.
Access the Legis1 platform for comprehensive political news, data, and insights
Spot something wrong? Report an issue with this article