Health Savings Account (HSA) assets have passed the $50 billion-mark sooner than expected, reaching an estimated $51.4 billion across more than 23 million accounts as of June.
In 2016, HSA experts Devenir predicted assets would exceed the $50 billion mark by the end of 2018. The research and investment solutions firm now anticipates continued growth amounting to $54 billion by the end of the fourth quarter, according to its midyear assessment.
Results of the Devenir 2018 Midyear Survey were based on survey data collected from the top 100 HSA providers in the market.
Key findings of the report included:
- HSA assets top $50 billion. HSA consumers had accumulated $51.4 billion in their HSAs at the end of June, a year over year increase of 20.4 percent. Devenir expects this number to grow to $54 billion by the end of 2018.
- Steady account growth.The total number of HSAs grew to 23.4 million by June 30, up 11.2 percent from a year ago. Overall, accounts grew by 5.2 percent in the first half of 2018, compared with 5.0 percent in 2017, 8.5 percent in 2016, and 5.5 percent in 2015.
- HSA investment assets approach $10 billion.Assets reached an estimated $9.8 billion by midyear, up 45.1 percent when compared to the end of June 2017. The average investment account holder has a $16,007 average total balance (including deposit and investment account).
- Fewer unfunded accounts.Less HSAs (just 15 percent) were unfunded at the midway point of 2018 versus 20 percent at the same time in 2017.
- Employer relationships are the largest driver of account growth.Direct employer relationships are responsible for 42 percent of new accounts opened in the first half of 2018.
“We have seen continual consumer adoption of HSAs and it’s exciting to see that collectively, account holders have saved over $50 billion for their future healthcare expenses,” Jon Robb, senior vice president of research and technology at Devenir, said in a statement.
Looking forward, the firm predicts the market will move toward $75 billion in assets spanning more than 29 million investor accounts by the end of 2020.
Jessa Claeys is a writer, editor and graphic designer.
