HSAs And FSAs Were Designed to Give Consumers Control and Clarity of Their Healthcare Spending

Congress created Health Savings Accounts and Flexible Spending Accounts to empower Americans with control over their healthcare spending. The accounts were designed to allow individuals to use pre-tax dollars to pay for their care directly, enabling them to save money in the process. And while most health care plans have incorporated FSAs and HSAs into their offerings, the majority of Americans still don’t feel comfortable with how they should be using them. The underlying issue here though is not a lack of awareness. It is a lack of utilization.

The financial impact of this issue is clear. The Employee Benefit Research Institute found that nearly half of all FSA participants forfeited some of their FSA funds in 2023, losing an average of $422 per person. These losses represent income tha