Fidelity Investments on Tuesday reported a 53 percent increase in its health savings accounts in 2012, bringing the number of individual accounts administered by the company to 182,000 compared to 119,000 at the end of 2011.
Fidelity manages $471 million in health savings account assets, an increase of 44 percent over the prior year. In addition, the number of companies offering the Fidelity HSA rose to 72, up from 57 at the end of 2011.
"The opportunity for triple tax advantages for individuals, the ability to carry over unspent funds year over year and the financial realities companies face in rising health care costs continued to drive the strong growth in our HSA business," William Applegate, vice president of Fidelity Investments, said in a statement.
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Nationwide, more people than ever are utilizing health savings accounts. The number of people with an HSA rose to more than 13.5 million in 2012, up from 11.4 million the previous year, according to data from America's Health Insurance Plans.
Last month, Wells Fargo reported record HSA growth. The banking giant's HSA program assets grew by 31 percent, reaching more than $809 million by the end of 2012, while accounts grew to a record 365,000 at 2012 year-end.
An HSA is an individually owned savings and investment account coupled with an HSA-powered health plan. Unlike flexible spending accounts, there is no "use-it or lose-it" rule and qualified medical expenses can be withdrawn tax-free year after year.
The accounts are a central element in consumer-driven health care and are designed to give individuals more control over funds allocated for health care services.
On average, account holders in Fidelity HSAs had contributions of $2,380 made to their accounts in 2012, which included money from both the employer and employee.
The annual HSA contribution limit set by the IRS increased this year to $3,250 for individuals, up from $3,150 in 2012, and $6,450 for families, up from $6,250. People age 55 or older can save an additional $1,000 per year in catch-up contributions, similar to some tax-advantaged retirement accounts such as 401(k)s or Individual Retirement Accounts.
Fidelity executives said that they are seeing more employers offering a high-deductible health plan together with an HSA, along with a defined contribution plan, as an integrated benefit offering.
Fidelity also noted growth in its HSA business across multiple industries, including large and mid-size corporations, plus tax-exempt institutions such as universities and health care providers.
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