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Employers increasingly adopt 401(k) strategies to boost worker participation in health savings accounts

Employers are increasingly adopting the automatic enrollment and matching features of 401(k) plans to increase worker participation in health savings accounts (HSAs). According to data from the Plan Sponsor Council of America, nearly 46% of employers automatically opted workers into an HSA if they enrolled in a high-deductible health plan in 2025, a significant increase from 32% in 2019. While 401(k) plans often use automatic paycheck deductions, HSA auto-enrollment typically involves employers seeding accounts with starter funds. About 77% of employers provided an HSA contribution in 2025. Additionally, some companies are beginning to offer a 401(k)-style match, where employer funds are added only if the employee contributes. Roughly 10% of employers who provide contributions currently use this match, with another 7.5% considering the move. HSAs offer a triple tax benefit: contributions are tax-deductible, growth is tax-free, and withdrawals for qualified medical expenses are tax-free. However, data shows that while 83% of employees contribute to their HSAs, only 22% currently invest those funds. Research indicates that the longer individuals hold an HSA, the more likely they are to invest their assets rather than holding them in cash.

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