Health Savings Accounts (HSAs) offer a unique and powerful tool to save on healthcare costs while securing unbeatable tax advantages. But they still fly under the radar for many people who would benefit from their capabilities.
To provide insight on the scope of this expanding market, check out this “By the Numbers” guide that delves into key current statistics and data points highlighting the growing importance of HSAs.
• 36 million: Number of health savings accounts in 2023, as reported by the Consumer Financial Protection Bureau in May. The prevalence of HSAs among consumers has surged in recent years, coinciding with the rising use of high deductible health plans (HDHPs). In 2013, the number of HSAs was just 11.8 million.
• 37 million: Number of HSAs at the end of 2023, as reported by Devenir’s 27th semi-annual HSA report, an increase of 5% from the previous year. Devenir forecasts that the HSA market will approach 44 million accounts by the end of 2026.
• $116 billion: HSAs collectively hold over $116 billion in assets, representing an increase of more than 500% since 2013, according to the CFPB report. This significant growth has coincided with the rising prevalence of high-deductible health plans (HDHPs), as HSAs were established to provide tax benefits to individuals and families with HDHPs.
• $123 billion: Amount of assets saved in the 37 million HSAs reported by Devenir at the end of 2023—a year-over-year increase of 19% for assets. The report forecasts $168 billion in assets by the end of 2026.
$4,868: Average HSA balance at the end of March 2024
BofA’s 1Q 2024 Participant Pulse study
• $4,150 and $8,300: The individual and family HSA contribution limits for 2024. The IRS in May announced that the 2025 HSA contribution limits will increase slightly to $4,300 and $8,550 for an individual with self-only coverage or family coverage under an HDHP.
• $791 and $1,469: Average annual HSA contributions for individuals and families.
• $4,868: Average HSA account balance at the end of March 2024, according to Bank of America’s 1Q 2024 Participant Pulse study. That’s up from $4,380 at the end of 2023.
• 2.9 million: Number of accounts that have at least a portion of their HSA dollars invested, representing about 8% of all accounts, according to Devenir.
• 13%: Percentage of HSA account holders at Bank of America that invested their HSA contributions for future growth in Q1 2024. Men outpaced women (18% vs. 12%), and Boomers were the biggest investors by generation (16%).
• 75%: Percentage of HSA owners from households earning less than $100,000 a year, according to the 2024 HSA Infographic from the American Bankers Association’s HSA Council, which represents more than 90% of HSAs in the U.S.
• 83% and 82%: Percentages of workers enrolled in single coverage and family coverage that are offered an HSA contribution from their employer.
• 61%: Percentage of HSA contributions that were spent on health care expenses in Q1 2024 per Bank of America, while 39% were saved. Millennials saved 47% of their contributions, more than any other generation.
• 38%: Percentage of HSAs at Bank of America who contributed more than they withdrew in Q1 2024, up slightly from 37% at year-end 2023.
• 20%: Tax penalty for using HSA funds for non-qualified expenses. People turning 65 may start withdrawing HSA funds for anything but will pay income tax on distributions not used for qualified expenses. Qualified expenses include (but are not limited to): Medical or dental deductibles and copays; non-elective procedures; hospital or specialist bills; eye exams; eyeglasses and contact lenses; lab fees; health insurance premiums; long-term care services or Medicare; medication; and ambulance services.
SOURCES:
• Devenir’s 27th semi-annual HSA report
• Consumer Financial Protection Bureau
• 2024 HSA Infographic from the ABA’s HSA Council
• Bank of America’s 1Q 2024 Participant Pulse study
SEE ALSO:
• HSA Contribution Limits Increased Slightly for 2025
• Health Savings Account Asset Growth Booming
• Checking the Pulse of the HSA Market with Devenir’s Eric Remjeske
Veteran financial services industry journalist Brian Anderson joined 401(k) Specialist as Managing Editor in January 2019. He has led editorial content for a variety of well-known properties including Insurance Forums, Life Insurance Selling, National Underwriter Life & Health, and Senior Market Advisor. He has always maintained a focus on providing readers with timely, useful information intended to help them build their business.