Black, Hispanic, female and low-income individuals may face health inequities because of how they contribute to health savings accounts, according to an Employee Benefit Research Institute study reported by CNBC.
The April 7 research from Washington, D.C.-based EBRI found the groups generally contribute less money to HSAs, have smaller balances and invest those funds less often than male, high-income, white and Asian individuals — all of which may reinforce and worsen health inequities between race, gender and income.
"Racially based, ethnicity-based and income-based discrepancies in the usage of HSAs are troublesome," the report said. "To the extent that those enrolled [in high-deductible health plans] do not also enroll in HSAs, do not take full advantage of the tax benefits HSAs offer or do not save a sufficient amount, they may find it more difficult to pay for medical expenses, and may delay necessary care or forgo it altogether. Delaying or forgoing care has deleterious effects on health."
The research data was sourced from over 11 million HSAs and uses ZIP codes as a proxy for income, race and ethnicity.
Four key takeaways, according to CNBC:
- About 58 percent of private-sector workers are enrolled in high-deductible plans, which generally have lower monthly premiums but higher out-of-pocket costs.
- White account holders have an average HSA balance of $5,004, while Black and Hispanic individuals have $3,438 and $3,737, respectively. Each analyzed group has had their HSA for about three years on average.
- White individuals contribute an average $1,806 to their HSAs annually, compared to Black and Hispanic savers contributing $494 and $412, respectively.
- White and Asian individuals take larger and more frequent distributions from their HSAs than Black and Hispanic individuals, suggesting the former are spending more money on healthcare.