Employers Increasingly Auto-Enrolling Workers in Health Savings Accounts
Employers are increasingly auto-enrolling eligible workers into health savings accounts (HSAs), mirroring the strategy used for 401(k) plans. According to a report by the Plan Sponsor Council of America, nearly half of employers now automatically enroll employees in HSAs — up from one-third in 2019. This trend reflects growing recognition among employers that auto-enrollment is key to helping workers take advantage of these accounts without requiring active decision-making. HSAs offer a triple tax benefit: contributions are made with pre-tax dollars, grow tax-free, and withdrawals for qualified medical expenses are also tax-free. However, eligibility requires enrollment in high-deductible health plans (HDHPs), which typically have lower premiums but higher out-of-pocket costs before insurance coverage kicks in. Employers often fund the initial contributions to HSAs, with many adding between $500 and $1,350 per employee. Some also match employees' own HSA contributions. As of 2026, over 62 million Americans are covered by an HSA, with millennials holding the largest share (42%) and those aged 55+ having the highest average balances.
Topics: auto-enrollment employee benefits financial planning health savings accounts