Health Savings Accounts (HSAs) rose to more than $11.7 Billion in June according to a survey and resulting research report conducted by Devenir, an investment firm that specializes in providing investment options for HSAs.
“The industry continues to see strong growth as both employers and individuals recognize the financial and consumer benefits of an HSA”
The survey data was collected in July, 2011 and primarily consisted of the top 50 custodians in the health savings account market, with all data being collected for the June 30th period. “As we continue to conduct the survey we are finding interesting data points on the HSA marketplace that have not been previously reported at an industry level,” says Eric Remjeske President and Co-Founder of Devenir.
Key Findings from the Devenir June 2011 survey and research report:
- Rapid growth. HSAs continue to see strong growth as the total number of HSA accounts rose to 6.3 million with assets totaling $11.7 billion, a year over year increase of 28 percent for accounts and a 31 percent increase in assets, as well as 17 percent growth in assets so far in 2011.
- Largest custodians hold significant market share. The top 5 custodians hold over $5.3 billion in HSA assets amongst almost 2.7 million accounts, accounting for 45 percent of all HSA assets.
- Average account balance grows. The average account balance in 2011 grew to $1,845 from $1,640 at the end 2010, a 12.5 percent increase. When you eliminate identified zero balance accounts that average rises to $2,016.
- Contributions and Withdrawals. HSA custodians retained 20 percent of customer contributions over the past year1.
- HSA investment dollars continue to grow. HSA investment assets reached an estimated $860 million in June, a 60 percent year over year increase and are projected to reach $9.1 billion by end of 2015. The average investment account holder has a $12,462 average total balance (Deposit and investment account).
“The industry continues to see strong growth as both employers and individuals recognize the financial and consumer benefits of an HSA,” according to Jon Robb, Lead Research Associate with Devenir. Devenir projects the HSA market to reach $47.3 billion in assets by the end of 2015, a 37 percent CAGR over the next five years2. Devenir also projects that HSA investment dollars will continue to grow quickly as health savings account user’s balances become larger, representing 19 percent of all HSA assets by the end of 2015.
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