Insights from the 2025 Congressional Report on HSAs

May 21, 2025

A Fresh Look at Health Savings Accounts

The Congressional Research Service (CRS) has recently updated its 2025 report on Health Savings Accounts (HSAs), a tax-advantaged savings option paired with high-deductible health plans (HDHP). With increasing medical expenses, HSAs offer a valuable way to save and pay for uninsured medical costs like deductibles and copayments. Interestingly, 39% of workers in the private sector, as well as state and local government employees, had access to an HSA through their employer in 2024.

Trends in HSA and HDHP Enrollment

Historically, enrollment in HSA-qualified HDHPs surged from the mid-2000s up until 2020. However, recent data reveals a stabilization trend. By the 2021 tax year, the IRS reported two million tax returns with individual HSA contributions and 12.1 million with employer contributions. The trend up to 2019 showed a faster growth rate in employer contributions. Yet, since 2020, these figures suggest stability in overall enrollment numbers.

Understanding HSA Withdrawals

IRS data shows an increase in nonrollover HSA withdrawals, with 8.8 million returns in 2021 indicating such activities. Of these, 4% involved taxable withdrawals for nonqualified expenses. Factors influencing lower withdrawal rates in 26-34 year-olds include less time to build an HSA balance and fewer healthcare costs. Incomes between $500,000 and $999,999 showed higher withdrawal rates, indicating a correlation between higher income and increased HSA usage.

Addressing Challenges in Data Collection

One of the challenges highlighted by the CRS report is the fragmented nature of data collection for HSA-eligible employees. With HSAs and HDHPs often managed by different entities, comprehensive data is scarce. For instance, when HSAs are established with banks, insurers may lack visibility into the account's activity. This division creates a gap in understanding the breadth of HSA utilization.

Maximizing Employee Benefits

High-deductible health plans and HSAs are effective tools for boosting employee savings for future medical costs. Understanding current utilization and trends allows organizations to tailor their strategies, offering meaningful benefits to employees. Employers should remain attentive to evolving trends and employee needs to enhance their benefits offerings. For further guidance and resources, feel free to reach out to us.

Home Insurance and Extreme Weather: What Homeowners Should Know

March 9, 2026
Across the country, homeowners are experiencing more frequent severe weather events. Heavy storms, flooding, and extreme temperature swings can all place new stress on homes and property. Because of this, many insurance providers are updating how policies handle weather-related risks. Homeowners should review what their Home Insurance policy actually covers when it comes to storm damage, water damage, and structural repairs. A common misconception is that all water damage is covered. In reality, flooding and certain weather-related issues may require additional protection. Spring is also the ideal time to inspect your home for potential vulnerabilities. Roof damage, aging gutters, and drainage issues can all increase the likelihood of claims during storm season. Insurance works best when prevention and protection go hand in hand. Taking small steps now can reduce risk and ensure your coverage works exactly as expected if something unexpected happens. Protect your home before storm season arrives.

How Rising Auto Repair Costs Are Changing Car Insurance in 2026

February 1, 2026
Auto repair costs have increased significantly over the past few years, and that trend continues into 2026. Advanced vehicle technology—like sensors, cameras, and driver assistance systems—makes cars safer but also more expensive to repair after accidents. Even minor collisions can involve replacing complex electronic components. This means insurance policies must account for higher repair expenses than they did a decade ago. Drivers often assume their policy automatically adjusts for these changes, but that isn’t always the case. Reviewing your Auto Insurance coverage can help confirm that your deductible, liability limits, and comprehensive protection match the real cost of repairs today. Another factor many drivers overlook is uninsured or underinsured motorist coverage. As repair prices climb, accidents involving drivers with limited coverage can leave you financially exposed. Working with a local agency helps ensure you understand your policy options and how they apply to your specific vehicle and driving habits. Make sure your coverage keeps up with today’s vehicles.

Insurance Checkup for the New Year: What to Review in 2026

January 1, 2026
The start of a new year is the perfect time to review your insurance coverage. Many people update their budgets, health goals, and financial plans in January—but insurance is often overlooked. A yearly policy review helps make sure your coverage still fits your life. Major changes like buying a home, starting a business, adding a driver to your household, or increasing the value of your assets can all affect your protection needs. For example, if you recently purchased a vehicle or moved into a new home, your current policies may not fully reflect those changes. Reviewing your Auto Insurance or Home Insurance coverage can help prevent unexpected gaps. Many families are also reevaluating financial protection in 2026 due to rising living costs and increased awareness around financial planning. This makes it a smart time to consider whether Life Insurance should be part of your long-term protection plan. A quick conversation with an insurance professional can help you understand where adjustments might make sense and where you may already be well protected. Start the year with confidence. Review your policies today with the Oak Ridge Insurance team.

Does General Liability Cover Independent Workers?

June 25, 2025
For many business owners, bringing independent contractors on board is a practical choice that brings flexibility and specialized skills. However, it's crucial to understand the liability risks associated with using such workers. A common misconception is that a General Liability (GL) policy offers blanket coverage, but the truth is far more complex. It's essential to recognize the potential risks if contractors don't have their own insurance coverage.

Life Insurance vs. AD&D: Making the Right Choice

June 19, 2025
In today’s uncertain world, financial planning is not just a smart move—it’s essential for protecting your loved ones. One of the key components of a strong financial plan is choosing the right insurance policy. For many, this decision boils down to a choice between life insurance and Accidental Death and Dismemberment (AD&D) insurance, two options that can be confusing at first glance. In this blog, we’ll break down the key differences to help you make an informed choice.

Plan Ahead: Travel Insurance for Summer Adventures

June 18, 2025
Summer travel season is just around the corner, with enticing destinations calling us away from our daily routines into the embrace of exploration and relaxation. Whether you're gearing up for a sun-soaked beach escape, a thrilling mountain adventure, or a culturally rich city break, one aspect of your travel checklist deserves more attention than it often gets: travel insurance. This essential safety net ensures that even with the most passionate planning, your dream vacation can be protected against unexpected curves the journey may throw your way.

Psychology and the Hesitation to Purchase Insurance

June 16, 2025
Have you ever meant to purchase life insurance but found yourself putting it off time and again? You're not alone. It's a common scenario, full of good intentions yet stalled by various hurdles along the way. Many of us have experienced this delay, and it's important to understand that the hesitation often stems from something deeper than mere procrastination or neglect.

Stay Safe Online: Understanding Cyber Risks and Insurance

June 12, 2025
Our daily existence is becoming digitally integrated at an unprecedented pace, making cybersecurity a paramount concern. From online shopping and social networking to managing smart homes, our personal and financial information is more exposed than ever. High-profile incidents, such as the Grubhub data breach and PlayStation Network hacks, highlight the vulnerability of our digital lives. Despite this, many people believe their home insurance covers cyber risks, which is often not the case. This is where cyber insurance becomes crucial.

Does General Liability Cover 1099 Workers?

June 10, 2025
Navigating the world of liability insurance can be daunting, especially when working with independent contractors. Many business owners mistakenly assume that their General Liability (GL) policy covers all potential risks associated with their independent contractors. However, the reality is more nuanced, and misunderstanding these risks can lead to significant exposure if contractors don't have their coverage.

Understanding Life Insurance vs. Accidental Death Insurance

June 6, 2025
Financial planning plays a crucial role in safeguarding the well-being of your loved ones. It's an essential step to ensure that, in unforeseen circumstances, your family remains secure. As part of this planning, understanding the nuances of various insurance options, such as life insurance and accidental death and dismemberment (AD&D) insurance, becomes imperative. Many people find these terms confusing, yet making an informed choice between them can significantly impact your financial safety net.