Use of Health Savings Accounts Continues to Grow (back)
Health savings accounts (HSAs) saw continued growth over the past year, according to a survey.
Devenir found the total number of HSA accounts rose to almost 7.1 million with assets totaling $14.1 billion, a year-over-year increase of more than 12% for accounts and a nearly 21% increase in assets for the period from June 30, 2011, to June 30, 2012.
Average account balances in the first half of this year grew to $1,996 from $1,807 at the end of 2011, a 10% increase. With identified zero balance accounts excluded, the average is $2,176.
Across the industry, HSA account holders have retained 30% of their contributions so far in 2012, up from 24% during 2011.
HSA investment dollars continue to grow. HSA investment assets reached an estimated $1.3 billion in June 2012, a 35% increase since the end of 2011 and a 51% increase from June 30, 2011.
“We continue to be very interested in understanding how HSAs are being funded and used, finding that both employers and employees are playing a significant role in contributing to HSAs to help save for future medical expenses,” said Jon Robb, lead research associate with Devenir.
The firm projects the HSA market may reach $25 billion in assets by the end of 2015, with HSA investment dollars growing rapidly as health savings account user’s balances become larger, representing almost 19% of all HSA assets by the end of 2015.
The survey data was collected in July and primarily consisted of top 50 HSA providers in the health savings account market, with all data being collected for the June 30, 2012 period dating back to June 30, 2011.