Playing Catch-up with Health Savings

Jacob Berman, Adam Bloomfield and Sita Slavov

No 34499, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: We use comprehensive tax data to study how saving behavior responds to the Health Savings Account (HSA) “catch-up” contribution provision, which raises HSA contribution limits for individuals aged 55 and older. Using a regression discontinuity design, we find a sharp increase in contributions among those previously near the limit and smaller increases among unconstrained savers. Induced contributions are not immediately withdrawn and do not appear to crowd out retirement savings. Responses are strongest among payroll contributors and long-term savers. However, married couples do not appear to coordinate their HSA behavior to take advantage of the complex spousal rules governing catch-up contributions. Our findings highlight how tax incentives shape HSA saving and suggest that tax-advantaged account design meaningfully affects household financial behavior.

JEL-codes: G51 H31 I13 J26 (search for similar items in EconPapers)
Date: 2025-11
New Economics Papers: this item is included in nep-age, nep-eur and nep-pub
Note: AG EH PE
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