By Pension and Benefits Editorial Staff
Health savings account (HSA) assets have accumulated $51.4 billion in their HSA accounts at the end of June, a year over year increase of 20.4 percent, according to the 2018 Midyear Devenir HSA Market Survey. Devenir expects this number to grow to $54 billion by the end of 2018.
The survey also found the following:
- Steady account growth. The total number of HSAs grew to 23.4 million at the end of June, up 11.2 percent from a year ago. The account growth in the first half of 2018 was in-line with recent years, the study found. 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. Backed by a strong market, HSA investment assets reached an estimated $9.8 billion at the end of June, up 45 percent year over year. The average investment account holder has a $16,007 average total balance (deposit and investment account).
- Fewer unfunded accounts. Less HSAs (15 percent) were unfunded at the midway point of 2018 compared to 20 percent at the same time in 2017.
- Employer relationships are the largest driver of account growth. Direct employer relationships are the leading driver of new account growth, accounting for 42 percent of new accounts opened in the first half of 2018.
Devenir projects that, by the end of 2020, the HSA market will approach $75 billion in HSA assets covering more than 29 million accounts.
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