MyPayMySay on healthcare savings for teachers: 'The ability to save and invest HSA funds tax-free makes it an appealing option'

MyPayMySay, an advocacy group, said that Health Savings Accounts (HSAs) offer educators a potential tool for managing medical expenses and planning for retirement through tax-free savings. This statement was made on its website on March 17.

"Educators are weighing the potential advantages against the challenges of high upfront costs and funding limitations," said . "Contributing to one requires careful budgeting, especially for educators who may already be managing student loan debt. Teachers are encouraged to evaluate their personal financial situations and consult with benefits coordinators before making a decision."

According to MyPayMySay, Angela, a public school teacher in Pennsylvania, values HSAs for their flexibility and long-term benefits. She said, "After a couple years, you build up a nice cushion to use towards things like copays and prescriptions." Unlike Flexible Spending Accounts (FSAs), HSAs allow funds to roll over each year and can be invested tax-free, making them a smart option for retirement planning. For 2025, the Internal Revenue Service (IRS) defines a high-deductible health plan (HDHP) as having a minimum deductible of $1,650 for individuals and $3,300 for families.

Health Savings Accounts in the U.S. continue to see significant growth. According to HSA investment firm Devenir, there were over 37 million accounts holding approximately $123 billion in assets by the end of 2023. This marks a 19% year-over-year increase in total assets and a 5% rise in the number of accounts. Devenir also projects that HSA assets could reach $177 billion by the end of 2026.

Senator Bernie Sanders has been a longstanding advocate for reducing healthcare costs. According to his website, he has particularly focused on lowering prescription drug prices and expanding Medicare coverage. In January 2024, Sanders welcomed the Biden administration's announcement that Medicare would begin negotiating the prices of diabetes and weight-loss drugs, pointing to the need to address the high costs of such medications.

MyPayMySay is an advocacy organization focused on empowering educators through resources, policy engagement, and classroom support. The organization promotes teacher autonomy, student achievement, and access to essential tools for delivering high-quality education.