Navigating the Shift: Why High-Deductible Health Plans Are Gaining Popularity Among Employers

ARTICLE | October 01, 2024

Authored by Vasquez + Company

As employers seek to reduce healthcare costs, high-deductible health plans (HDHPs) are becoming increasingly popular. This article, “HDHPs Gain Traction In Group Market,” discusses the structure and benefits of HDHPs, including the associated health savings accounts (HSAs) that allow employees to save pre-tax for medical expenses.

Key Points:

• Cost Savings: HDHPs generally have lower premium costs compared to traditional plans, making them attractive to employers and employees alike.
• Market Trends: The percentage of workers covered by HDHPs has surged, reflecting a shift of medical cost burdens from employers to employees.
• Contribution Guidelines: Updated IRS limits for HSA contributions and minimum deductible requirements for HDHPs in 2025 are outlined.
• Target Audience: While beneficial for healthier employees in higher tax brackets, HDHPs may not suit lower-wage workers or those with chronic health issues.

Understanding these factors can help employers make informed decisions about their healthcare offerings. For more information, read the full article here.

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