According to a survey by Devenir, HSAs continue to see consistent growth, with a year-over-year increase of almost 20% for accounts and 26% in assets for the period from December 31, 2010, to December 31, 2011.
Other findings from the survey include:
• The average HSA account balance at the end of 2011 was $1,841, up from $1,751 at the end 2010, a 5.1% increase. When identified zero balance accounts are eliminated, the average rises to $2,179.
• Existing accounts’ average balances have grown at an average of 31% each year from the year they were opened since 2005.
• Industry-wide, HSA holders carried forward 24% of their contributions over the past year into 2012.
• HSA investment assets reached an estimated $960 million in December, a 34% year-over-year increase, and are projected to reach $4.7 billion by the end of 2015.
“With the data suggesting that the average HSA balance continues to grow steadily the longer the account has been opened, HSAs are demonstrating that they are serving their purpose and helping consumers save for future healthcare expenses,” said Jon Robb, lead research associate with Devenir.
Devenir projects the HSA market to reach $27.6 billion in assets by the end of 2015. Devenir also projects that HSA investment dollars will continue to grow quickly as health savings account user’s balances become larger, representing 17% of all HSA assets by the end of 2015.
The survey data was collected in January 2012, and primarily consisted of data from the top 50 providers in the health savings account market, for the December 31, 2011, period.