Health Savings Accounts Reach Almost $23 Billion in June
MINNEAPOLIS--(BUSINESS WIRE)--According to the 8th semi-annual Health Savings Accounts (HSAs) survey and resulting research report conducted by Devenir, HSAs have grown to an estimated $22.8 billion in assets and almost 11.8 million accounts as of June 30th, 2014.
“Our findings show that HSAs continue to grow and those that have participated in HSA investment options on average are seeing the value of compounded tax deferred investment returns in their HSA for future medical costs”
The survey data was collected in July 2014 and primarily consisted primarily of top 100 HSA providers in the health savings account market, with all data being collected for the June 30th, 2014 time period. “Our research shows that accountholders are both utilizing their HSA for current medical expenses as well as saving for future healthcare expenses. HSAs appear to be working and that’s exciting,” said Jon Robb, Senior Vice President of Research at Devenir.
Key findings from the Devenir 2014 Midyear HSA Survey and resulting research report:
- HSA assets reach almost $23 billion. HSA accounts rose to 11.8 million, holding assets totaling over $22.8 billion, a year over year increase of 26% for HSA assets and 29% for accounts for the period of June 30th, 2013 to June 30th, 2014.
- Health plans drive growth. In the first half of 2014, health plans were the leading driver of new account growth, accounting for 31% of new accounts.
- Continued strong market fuels HSA investment growth. HSA investment assets reached an estimated $2.9 billion in June, up 45% year over year. The average investment account holder has a $12,473 average total balance (deposit and investment account).
- Investors show solid returns. Investors achieved an average annualized return of 10.6% on their HSA investments over the last 5 years.
“Our findings show that HSAs continue to grow and those that have participated in HSA investment options on average are seeing the value of compounded tax deferred investment returns in their HSA for future medical costs,” says Eric Remjeske, President and Co-Founder of Devenir. Devenir projects that by the end of 2014 the HSA market will likely exceed $24 billion in HSA assets covering more than 13 million accounts.
Projections derived from 2014 Midyear Devenir HSA Market 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 and investment resources to suit the unique needs of banks, administrators and employers. www.devenir.com