In the midst of trying to understand health insurance options during open enrollment, employees often miss a powerful benefit – health saving accounts (HSAs). Based on Conduent data from 200,000 employees, 43% of eligible employees don't participate in HSAs. And of those that do, 57% aren't capturing the full savings because their contributions are significantly less than the maximum ($3,650 for individuals and $7,300 for families, increasing to $3,850 and $7,750 respectively in 2023). And like a 401(K), there is a $1,000 catch-up provision for participants who are age 55 or over.

Employees aren't taking advantage of the HSA because in general there hasn't been enough education about them. It took time but employees now understand the benefits of a 401(k) and how to participate. Part of the challenge is that HSAs have different applications depending on life stage and needs, and the tax implications and intricacies might feel overwhelming. There is a huge opportunity to educate employees on how to strategically utilize HSAs and reap the most benefits.