October 7, 2016

WE ARE ALL THIRD WAY NOW:

HSAs May Be The New 401(k)s, And HealthEquity Pounces On Market  (ALISSA WILLIAMS9/23/2016, IBD)

Health savings accounts are quickly becoming the norm at corporations throughout the U.S., and top HSA administrator HealthEquity (HQY) expects these accounts to one day serve the same role as other retirement savings vehicles.

To be sure, high-deductible medical insurance plans are on the rise. For one there is a "tax savings bonanza from contributing to an HSA as your first place to build savings," according to HealthEquity Senior Vice President of Products Brad Bennion.

Speaking on the company's recent conference call, Bennion was echoing sentiments from personal finance guru Suze Orman during the company's partner summit in July. Bennion also points out a number of key benefits, such as lower insurance premiums and lower net deductibles.

"While only about 14% of working Americans have HSAs today, eventually, HSAs will become ubiquitous, as common as other retirement accounts like 401(k)s and IRAs," Bennion said. He added: "They will be used not only for current health care spending but for long-term health care saving and retirement planning, resulting in higher asset balances."

Posted by at October 7, 2016 2:29 PM

  

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