HSA assets up 22 percent in 2017

The number of health savings accounts rose to 22 million at the end of 2017, holding over $45 billion in assets, according to recent research from Devenir. The 2017 Year-End HSA Survey noted that this is a year-over-year increase of 22 percent for HSA assets and 11 percent for accounts for the year ended December 31, 2017.
The survey also found the following:

  • HSA investments accelerate asset growth. A strong market helped propel HSA investment assets to an estimated $8.3 billion at the end of December, up 53 percent from 2016. The average investment account holder has a $16,457 average total balance.
  • Seasonally low unfunded accounts. Less HSAs (20 percent) were unfunded at the end of 2017 compared to 24 percent at the end of 2016.
  • Employer relationships become the largest driver of account growth. Direct employer relationships became the leading driver of new account growth, accounting for 41 percent of new accounts opened in 2017.

“A strong stock market and increased awareness of the role HSAs can have in planning for retirement health care costs propelled HSA investment assets higher, with HSA investments seeing the highest growth rate in over five years,” said Jon Robb, senior vice president of research and technology at Devenir.
According to Devenir, by the end of 2019, the HSA market will likely exceed $60 billion in HSA assets covering roughly 27.5 million accounts.

SOURCE: www.devenir.com

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