HSA Enrollment May Surge During Trump Administration

HSA Enrollment Trump AdministrationAlready a popular consumer driven health account, HSA enrollment could see a significant boost during the Trump Administration.

Now that the election is over, one thing on many people’s minds is President-elect Donald Trump’s healthcare plan.

According to GreatAgain.gov, the incoming administration’s transition website, “A Trump Administration will work with Congress to repeal the ACA and replace it with a solution that includes Health Savings Accounts (HSAs)… to create a patient-centered healthcare system that promotes choice, quality, and affordability…” While replacement initially seems like the ultimate goal, the Trump Administration indicates willingness to keep some provisions of the Affordable Care Act (ACA), such as protecting Americans with pre-existing conditions from losing or being denied healthcare coverage and allowing children up to age 26 to stay on their parents’ policies.

What could this mean for Health Savings Accounts?

For HSAs, the popular tax-advantaged account that requires a high deductible health plan, this is even more positive news. Since 2013, HSAs have seen a 53.7 increase in enrollments. It is not immediately clear how President-elect Trump seeks to pursue reforming (or replacing) ACA with an emphasis on HSAs or how long it would take for implementation. However, if he is able to successfully work with Congress to get his plan approved, the market would presumably see an even greater surge in HSA enrollment as they become more accessible.

For third party administrators who offer HSA administration services, this could mean a potential bonanza in revenue. It could also result in greater tax savings for individuals who sign up for HSAs because contributions to the account are pre-taxable up to a certain amount.

The following chart addresses contribution limits, annual deductibles, and out-of-pocket expenses for individuals and families in 2017.

2016 Individual Coverage 2017 Individual Coverage 2016 Family Coverage 2017 Family Coverage
Contribution limits $3,350  $3,400* $6,750 $6,750
Annual deductible $1,300 $1,300 $2,600 $2,600
Out-of-pocket expenses $6,550 $6,550 $13,100 $13,100

Advantages of Offering Health Savings Accounts

In addition to a boost in revenue, TPAs who want to offer HSAs should seek a solutions partner who can offer the following market advantages:

  • A turnkey solution – Many banks offer HSAs, which takes the administration burden off the TPA’s hands. But for those who want to see an increase in revenue, a turnkey solution with various administration options (like self-certifying purchases and auto-substantiation for debit cards) that minimize the workload is crucial.
  • Simple account setup – Along with the turnkey solution is the ability for TPAs to simplify account setup, contribution processing, expense certification, and tax document preparation, among other tasks, in order to reduce the repetitive burdens of basic account administration
  • Investing features – One key benefit of an HSA is the ability for account holders to invest their pretax dollars to help their accounts grow. Finding a solutions provider that provides investment features, such as a low investing threshold (some are as low as $1,000) and educational tools to help their clients invest with confidence, can boost client satisfaction and loyalty.
  • Accessible claims and receipts – TPAs need to offer their clients an easy way to get to their claims documents and receipts. A storage feature within a secure web portal provides account owners the ability to conveniently access, view, and print their documents from virtually anywhere.


Since 2005, DataPath’s HSAToday® has been a market leading solution for simple HSA account administration with an expansive range of features for account holders. Contact us today to learn more.

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