The survey was conducted by Devenir, a provider of investment solutions for the HSA custodian marketplace. Findings from the survey indicate that HSAs grew to an estimated $19.3 billion in assets and 10.7 million accounts at year-end 2013, and then exceeded the $20 billion mark in January. This trend of growth reinforces similar findings noted by others (see “Health Savings Accounts Continue to Expand”).
“HSAs continue to grow as Americans increasingly see that the HAS-based defined contribution approach to health care is the best way to curb health care cost inflation,” says Eric Remjeske, president and co-founder of Devenir, which is based in Minneapolis.
Key findings from the survey include:
- Steady account and asset growth. HSA accounts rose to 10.7 million accounts, holding assets totaling $19.3 billion, a year over year increase of 25% for HSA assets and 30% for accounts for the period of December 31, 2012 to December 31, 2013.
- More providers offering HSAs. In 2013, over 2,200 banks and credit unions offered health savings accounts.
- HSA contributions continue to rise. Total contributions to HSA accounts from December 2012 to December 2013 were estimated to be $16.4 billion, with accountholders retaining about 24% of those contributions after distributions for medical expenses.
- HSA investment dollars grow with help from strong market. HSA investment assets reached an estimated $2.3 billion in December 2013, up 30% from the end of 2012. The average investment account holder has an $11,350 average total balance (deposit and investment account).
“With both HSA accounts and assets increasing at a rapid rate, it’s clear that 10 years after their inception, HSAs are proving to be a valuable solution for healthcare consumers,” says Jon Robb, vice president of Research at Devenir. Projections from Devenir indicate that by the end of 2014, the HSA market will likely approach $24 billion in HSA assets and cover more than 13 million accounts.
The survey data was collected between January and February 2014, and primarily consisted of the top 50 HSA providers in the health savings account market. Data collected included the December 31, 2013, period, as well as top line data for January 2014 month-end.
An executive summary of the survey findings can be found here.
« Towers Watson Pension Index Decreases in January