Health Savings Accounts Exceed $20 Billion in January
MINNEAPOLIS--(BUSINESS WIRE)--According to the 7th semi-annual Health Savings Accounts (HSAs) survey and resulting research report conducted by Devenir, HSAs have grown to an estimated $19.3 billion in assets and 10.7 million accounts at year-end 2013 and have grown to well over $20 billion in assets during the month of January.
“HSAs continue to grow as Americans increasingly see that the HSA based defined contribution approach to healthcare is the best way to curb healthcare cost inflation”
The survey data was collected between January and February of 2014 and primarily consisted of top 50 HSA providers in the health savings account market, with all data being collected for the December 31st, 2013 period as well as top line data for January 2014 month end. “HSAs continue to grow as Americans increasingly see that the HSA based defined contribution approach to healthcare is the best way to curb healthcare cost inflation,” says Eric Remjeske, President and Co-Founder of Devenir.
Key findings from the Devenir Year-End 2013 HSA Survey and resulting research report:
- 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 31st, 2012 to December 31st, 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, 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 ten years after their inception, HSAs are proving to be a valuable solution for healthcare consumers,” says Jon Robb, Vice President of Research at Devenir. Devenir projects that by the end of 2014 the HSA market will likely approach $24 billion in HSA assets covering more than 13 million accounts.
Projections derived from Devenir Year-End 2013 HSA survey, press releases, previous market research, and market growth rates. Projections are barring any regulatory or market environment changes.
Forward-looking statements are based on current expectations and assumptions based on historical growth, the economy, other future conditions and forecasts of future events, circumstances and results.
Devenir, based in Minneapolis, is a national leader in providing customized investment solutions to the HSA custodian marketplace. As an HSA industry leading investment firm, Devenir offers a host of investment options to suit the unique needs of employers, banks, third party administrators and plan participants. www.devenir.com