Reference no: EM132396855

It is economically advantageous to enroll in a health savings account offered by your employer. The health savings account allows you to deduct money from your paycheck before taxes and place it into a savings account in which you can use to spend on healthcare and supplies or as it sits in that account it can earn interest over time. Your employer will match what you put into your account. If you put in $50 then your employer will put in $50 and you will have $100 in your savings account to spend on future health care costs. This program automatically enrolls each employee and deducts 5% of their pay toward this savings account. Employees may opt out by completing forms and submitting it to their human resources department. 

Participating in this is in the employees' best interest in many ways and it would be rational for employees not to opt out. Why might some employees wish to opt out? Consider those who may be making close to minimum wage.