The 2014 Midyear Devenir HSA Market Survey shows a year-over-year increase of 26% for HSA assets for the period of June 30, 2013, to June 30, 2014. Over this same time frame, the number of HSA accounts increased by 29% to 11.8 million accounts.
The survey found health plans are driving this growth. In the first half of this year, health plans were the leading driver of new account growth, accounting for 31% of new accounts.
“Our research shows that account holders are both utilizing their HSA for current medical expenses, as well as saving for future health care expenses,” says Jon Robb, senior vice president of research at Devenir, in Minneapolis.
In addition, a continued strong market fuels HSA investment growth. HSA investment assets reached an estimated $2.9 billion in June, up 45% year over year. The average investment account holder has a $12,473 average total balance. Investors achieved an average annualized return of 10.6% on their HSA investments over the last five years.
“Our findings show that HSAs continue to grow and those that have participated in HSA investment options are, on average, seeing the value of compounded, tax-deferred investment returns in their HSA for future medical costs,” says Eric Remjeske, president and co-founder of the firm.
Estimates from Devenir project that, by year’s end, the HSA market will likely exceed $24 billion in HSA assets, covering more than 13 million accounts.
The survey data consisted primarily of top 100 HSA providers in the health savings account market, with all data collected in July for the period ending June 30. Information about downloading an executive summary of the survey findings can be found here.
Devenir is a provider of customized investment solutions to the HSA custodian marketplace.