What Happened?

If you have a health savings account, there's a good chance your employer is the one putting most of the money in, according to the Congressional Research Service (CRS). ​

The finding also notes that individuals can contribute to their own health savings accounts (HSA). The CRS report draws on IRS tax-return data from 2004 to 2022. Over that period, aggregate HSA contributions totaled $337.4 billion. Annual employer contributions rose from $17.6 million to $35.5 billion, while individual contributions rose from $207.8 million to $6.6 billion.

Why Does it Matter to Me?

In 2022, about 12.9 million tax returns, roughly eight percent of all returns filed, reported employer HSA contributions. That is a much larger share than the roughly 2.1 million returns, about one percent, that reported individual contributions.

Even so, people who did contribute on their own put in more per return: average individual contributions were $3,129, compared with $2,747 for employer contributions. That gap narrowed from $1,038 to $383 over the period, and the CRS report notes that contribution amounts are not adjusted for inflation.

Both Sides, Now

The analysis reports that the share of tax returns with employer health savings account contributions generally rose with adjusted gross income. It also reports that growth in average employer contributions may have been more concentrated among higher-income individuals, which may mean the tax advantages flow more to higher earners than to lower-income workers.

The CRS report says employer-related funding "has become an increasingly prominent component of overall HSA financing" and that its trends may inform congressional consideration of proposals to modify eligibility, contribution limits, or the tax treatment of contributions.

What Happens Next?

The CRS report does not name a specific bill, scheduled vote, or committee hearing tied to these findings, and no next step has been announced.

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