To Help Workers Save for Health Care Today and in the Future
March 17, 2015 – BOSTON–(BUSINESS WIRE)–As American companies increasingly offer high-deductible health plans (HDHPs), many have paired them with health savings accounts (HSAs) to create a powerful combination that can help employers and employees1 tackle the ever-climbing costs of health care.
Reinforcing this trend, Fidelity noted a 34 percent increase in HSA employer clients in 2014, with 137 companies now offering a Fidelity HSA® to their workforce, up from 102 one year prior2. This marks the firm’s fourth straight year of double-digit client growth in this area. Fidelity now manages $1 billion in HSA assets, up 54 percent over the past year.
A Tax-Advantaged approach
HSAs help people save for health care costs because their contributions are tax-advantaged when used for qualified medical expenses, and most companies now offer an employer contribution3. And, unspent balances carry over from year to year and may be invested for the long term4, similar to savings in retirement plans.
“Clients are asking us to help their employees save for rising health care costs today and in retirement, and an HSA can go a long way toward meeting that goal,” said Eric Dowley, senior vice president, HSA Product Management, Fidelity Investments.
“We now provide HSAs for 367,000 American workers, many of whom are carrying balances forward that can be invested for medical expenses in their future.” Employers across various industries implemented the Fidelity HSA in 2014. They include pharmaceutical company Bristol-Myers Squibb; TriMas Corporation, a diversified manufacturer of engineered and applied products; UL, the independent safety science company; and Bowdoin College, a nationally renowned college of liberal arts and science.
Fidelity clients often say they chose Fidelity’s HSA for its integration into existing benefits offerings, including a retirement savings plan. Consolidating an HSA and retirement plan offers companies efficiencies, including a single source for recordkeeping, reporting and employee savings education. For employees, HSA balances appear alongside their retirement savings on Fidelity.com and NetBenefits®, Fidelity’s participant digital experience.
This combination ensures employees receive a consolidated online experience, be it on the Web, a mobile device or tablet. HSA help includes: Viewpoints articles on Fidelity.com; workshops and eLearning to help employees realize the benefits of HDHPs paired with HSAs; and dedicated phone representatives who can assist with contribution elections. Contribution guidance helps employees determine how much to save in an HSA, what possible employer contributions may exist, how to cover their health plan’s deductible, and what their out-of-pocket expenses maximum may be.
About Fidelity InvestmentsFidelity’s goal is to make financial expertise broadly accessible and effective in helping people live the lives they want. With assets under administration of $5.0 trillion, including managed assets of $2.0 trillion as of January 31, 2015, we focus on meeting the unique needs of a diverse set of customers: helping over 23 million people investing their own life savings, 20,000 businesses to manage their employee benefit programs, as well as providing 10,000 advisory firms with technology solutions to invest their own clients’ money. Privately held for nearly 70 years, Fidelity employs 41,000 associates who are focused on the long-term success of our customers. For more information about Fidelity Investments, visit www.fidelity.com.