HSAs in the era of Trump

The next four years are poised to take HSAs up a notch. Photo: Getty Images

The new Trump administration is vocally anti-Affordable Care Act and, as the American public will continue to learn, it strongly supports tax advantaged plans in general and health savings accounts (HSAs) specifically.  Expect adoption of both consumer driven health plans (CDHPs) and HSAs to continue trending much the way they have been already, though more aggressively so with the likely upcoming changes to health care reform measures.

A recent survey by UBA Benefits indicates that 26.4 percent of all American workers are enrolled in a CDHP, which is a requirement for opening and contributing to HSAs.  Devenir’s 2016 midyear report indicates over 18 million accounts, a 25 percent increase in accounts over the previous year, and a 22 percent surge in assets to nearly $35 billion. Meanwhile, HSA investments amount to $4.7 billion, which is an annual increase of 23 percent. Account balances comprised of contributions and investment accounts average over $15,000. Devenir currently projects that by the end of 2018, the HSA market will exceed $50 billion in HSA assets held among over 27 million accounts. Evidence of this HSA-focused administration is evident in the health care re-reform proposals offered up by Republicans so far.