Health savings accounts (HSAs) can be used to save for out-of-pocket medical expenses now and in the future, and research from Devenir shows employees are getting it.
HSAs have grown to an estimated $37 billion in assets and 20 million accounts at year-end 2016 and have grown to over $41 billion in assets during the month of January, according to Devenir’s 13th semi-annual HSA survey and resulting research report.
This represents a year-over-year increase of 22% for HSA assets and 20% for accounts for the period of December 31, 2015, to December 31, 2016. Devenir found that during 2016, health plan partnerships were the leading driver of new account growth for HSA providers, accounting for 37% of new accounts.
Research has shown that HSAs with investments had higher account balances than those that do not offer investments. Devenir’s research shows HSA investment assets reached an estimated $5.5 billion in December, up 29% year over year. The average investment account holder has a $14,971 average total balance (deposit and investment account).
Devenir projects that by the end of 2018, the HSA market will likely exceed $50 billion in HSA assets covering more than 27 million accounts.The full research report is here.