Inspira Financial’s Study Reveals Increased Contributions Among Workers With Both HSAs and LPFSAs

OAK BROOK, IL / ACCESSWIRE / September 10, 2024 / Inspira Financial, a leading provider of health, wealth, retirement, and benefits solutions, has released a new study focusing on individuals who own both a health savings account (HSA) and a limited purpose flexible spending account (LPFSA). Key findings indicate that employees with both accounts contribute more to their HSAs compared to those who only have an HSA. However, many are not maximizing the tax benefits.

Inspira collaborated with the Employee Benefit Research Institute (EBRI) to analyze data from nearly 300,000 account holders. The study highlights that pairing an LPFSA with an HSA can significantly enhance workplace benefit engagement and tax savings.

Michael Eldredge, HSA Product Manager at Inspira, emphasizes the strategic use of both accounts to optimize health care spending and savings. Despite higher contributions, around 30% of employees do not withdraw funds from their LPFSAs, missing out on full benefits. Eldredge suggests that employers educate employees on the advantages of using LPFSAs for dental and vision expenses to better leverage these benefits.