Massachusetts has lagged behind for years in the adoption of HSAs. One reason may be that only 43.1 percent of Massachusetts private-sector employers were enrolled in a plan with a deductible compared to 73.8 percent of employers nationally. Massachusetts residents enrolled in high deductible plans (often coupled with an HSA) account for only 2 percent of those with health insurance, placing the Commonwealth with one of the lowest percentages of residents enrolled in these plans in the nation.
The trade-off is two fold.
One, these employees are receiving a pay cut as more money is spent on health insurance.
Second, the incentives for employees to be smart consumers of health care is all but removed.
Slide 2 shows the rapid national growth in adoption of HSAs.
