Trade Group Data Shows HSA Market Growth

May 19, 2010 ( – New data from an insurance trade group shows continued growth in the health savings accounts/high-deductible health plan (HSA/HDHP) marketplace.

A report from the Center for Policy and Research at America’s Health Insurance Plans (AHIP) said about 10 million Americans were covered by HSA/HDHP products as of January 2010.This represents an increase of 2 million since January 2009, 3.9 million since January 2008, 5.5 million since January 2007, 6.8 million since January 2006, and 9 million since March 2005, AHIP said.

Between January 2009 and January 2010, the fastest growing market for HSA/HDHP products was large-group coverage, which rose by 33%, followed by small-group coverage, which grew by 22%.

Average deductibles for the best-selling HSA/HDHPs in the small-group market were lower than those in the individual market, averaging $2,329 for single coverage and $4,418 for family coverage. The average lifetime maximum benefit (for companies imposing lifetime limits) for small-group policies was $4.8 million for single policies and $4.9 million per person for family policies.

Meanwhile, according to AHIP, as of January 2010, large-group coverage had increased to almost 5 million people, up from approximately 3.8 million in January 2009. Thirteen percent of all new health insurance enrollment in the large-group market (defined as new enrollment in the most recent full month or quarter) was attributed to HSA/HDHP coverage.

AHIP’s study was able to collect state-by-state enrollment on over 9.6 million lives with HSA/HDHP coverage as of January 2010. States with the largest reported HSA/HDHP enrollment levels were California (1,018,000); Ohio (651,000); Florida (639,000); Texas (637,000); Illinois (575,000); and Minnesota (361,000).

States with the highest percentage of HSA/HDHP enrollees among their under-65 populations with private health insurance were Vermont (13.8%); Minnesota (9.2%); Colorado (9.2%); Arkansas (8.2%); Indiana (8.1%); Ohio (8%); and Louisiana and Nebraska (7.5%).

Ninety-three companies responded to the January 2010 census. Seventy-eight companies had HSA/HDHP enrollment in the individual market; 81 companies had HSA/HDHP enrollment in the small-group market; and 80 companies had enrollment in the large-group market. Twenty-one companies had HSA/HDHP enrollment of more than 100,000 covered lives each, up from 16 companies in January 2009, 14 companies in January 2008, and 11 companies in January 2007.

The study report is available here