As employers look for ways to strengthen their benefits packages while managing healthcare costs, Health Savings Accounts (HSAs) remain an important part of many high-deductible health plans. Pairing employer HSA contributions with a Limited Purpose Flexible Spending Account (LPFSA) can give employers another way to support employees' financial wellness while enhancing the value of their benefits.
For brokers, understanding how these accounts work together can help support conversations with employer clients looking for practical, cost-conscious benefits strategies.
HSA adoption continues to grow
HSAs continue to gain momentum. According to Devenir's 2025 Year-End HSA Research Report, there are 41.7 million HSA accounts nationwide, representing nearly $174 billion in assets. More than 60% of HSA accounts are employer affiliated, highlighting the important role employers play in encouraging participation.
Why employer contributions matter
Many employers choose to contribute funds to employees' HSAs at the beginning of the plan year. Even modest contributions can help employees pay for eligible healthcare expenses sooner while increasing awareness and appreciation of their benefits.
Employer HSA contributions can help:
- Offset out-of-pocket healthcare costs.
- Encourage early engagement with HSA benefits.
- Support employee financial wellness.
- Strengthen recruiting and retention efforts.
Pairing HSAs with an LPFSA
Employees enrolled in an HSA generally cannot contribute to a traditional healthcare Flexible Spending Account. However, a Limited Purpose FSA is designed to complement an HSA by covering eligible dental and vision expenses while preserving HSA eligibility.
Using an LPFSA for predictable dental and vision costs allows employees to save HSA dollars for future healthcare expenses or retirement while maximizing available tax advantages. In addition, members can convert their LPFSA to a full-service FSA once they satisfy their medical deductible.
Together, HSAs and LPFSAs help employees:
- Budget for expected dental and vision expenses.
- Preserve HSA balances for future healthcare needs.
- Maximize tax-advantaged savings.
- Take a more strategic approach to healthcare spending.
Supporting employer conversations
Offering employer HSA contributions alongside an LPFSA can reinforce a broader financial wellness strategy while giving employees greater flexibility in managing healthcare expenses.
As employers continue evaluating benefit options, understanding how these accounts work together can help brokers deliver informed recommendations that support both workforce needs and long-term financial goals.
Anthem offers Health Savings Accounts, Flexible Spending Accounts, Limited Purpose Flexible Spending Accounts, Dependent Care Flexible Spending Accounts, and Health Reimbursement Arrangements. To learn more, contact your Anthem representative.