HSA Owners Are Wealthier GAO - General Accountability Office 2008-05-13

A report by the General Accountability Office revealed that people with higher incomes are more likely to participate in Health Savings Accounts. Some HSA critics say that HSA-eligible plans attract enrollees who don’t have the resources to contribute to an HSA or attract wealthy enrollees who just want to use them to accumulate tax-advantaged savings rather than pay for medical expenses. Tax filers who reported HSA activity in 2005 had higher incomes. Of those between 19 and 64, the average adjusted gross income was about $139,000 compared to about $57,000 for all other filers. Income differences existed across all age groups. Between 2004 and 2007, the number of people participating in HSA-eligible health plans increased from about 438,000 to about 4.5 million. Despite the growth, these plans represented only 2% of people with private health coverage in 2006. From 2005, to 2007, more than 40% of people who were eligible to enroll in a HSA-eligible health plan did not do so. The total value of all HSA contributions reported to IRS was about twice that of withdrawals in 2005 -- $754 million compared to $366 million. The average contribution among all filers reporting HSA activity in 2005 was about $2,100 compared to average withdrawals of about $1,000. Employer contributions in 2007 varied. One survey of large employers revealed average contributions of $626 for single coverage, while a survey of small employers revealed average contributions of $806 for single coverage. More than a third of employers that offered HSA-eligible plans made no HSA contributions. For more information, visit www.gao.gov/new.items/d08474r.pdf.