Why HSAs are the Best-Kept Secret in Employee Benefits (And Why You Need to Offer One)

If you're anything like me, you've probably heard all the buzz around Health Savings Accounts (HSAs), but maybe you're still wondering if they're worth the hype. Well, folks, I'm here to tell you—HSAs are not just another benefit option; they're one of the most powerful tools we have for helping employees take control of their health care finances.

At Kennion Benefit Advisors, we've seen firsthand how HSAs have exploded in popularity. Why? Because they put control back into the hands of your employees, allowing them to make choices that best suit their unique financial and health needs.

Why is Everyone Suddenly Excited About HSAs?

First off, let's get real about the financial perks. HSAs offer what's known as "triple-tax benefits": contributions are tax-deductible, savings grow tax-free, and withdrawals for qualified medical expenses are also tax-free. In other words, Uncle Sam is practically begging you to save money!

But here's the kicker—it's not just a short-term game. HSAs can become powerful long-term savings vehicles. Employees who regularly contribute can build significant funds, turning their HSA into a valuable asset for future medical costs, retirement health care expenses, or even as a supplement to retirement savings.

Big News for 2026

Here's something you'll want to share with your employees immediately: In 2026, HSA contribution limits are rising again. Families can contribute up to $8,750—that's a solid bump from the 2025 limit of $8,550. For individual coverage, the minimum deductible for eligibility moves to $1,700, and for family plans, it increases to $3,400. Plus, the out-of-pocket maximum can't exceed $8,500 for individuals or $17,000 for families.

(Source: IRS updates for 2026: https://www.irs.gov/pub/irs-drop/rp-24-22.pdf)

Flexibility is Key

At Kennion, we're big believers in flexibility. Most of our clients already offer HSAs alongside other health plan options, and here's why: every employee has different needs. A young, healthy individual might prefer an HSA combined with a high-deductible health plan for lower premiums and long-term savings. Meanwhile, another employee might prefer a traditional health plan with predictable out-of-pocket costs.

When employees have choices, they're happier, they're more engaged, and—no surprise here—they stick around longer.

How to Get Started (or Enhance Your Current Offering)

If you don't already offer an HSA, it's time to rethink your strategy. And if you do offer one but aren't seeing the enthusiasm you'd like, maybe it's time for some fresh communication and education around the benefits. Remember, an informed employee is an empowered employee.

At Kennion Benefit Advisors, we thrive on helping small businesses find innovative ways to save money and enhance employee satisfaction. After over 50 years in the industry, trust me—we know a thing or two about shaking things up.

Ready to make a change or simply want to talk HSAs? Let's chat. Because doing things the way they've always been done is overrated.