Value of HSAs estimated to hit over $100B by 2022
Almost half of all current HSA accounts have been opened since 2018, though 18% are unfunded.
Despite many consumers not properly planning for future health care expenses, health savings accounts (HSAs) are more popular—and valuable—than ever, according to the 2020 Midyear HSA Market Statistics & Trends report by Devenir Research. The report is primarily based on the 2020 Midyear Devenir HSA Market Survey of 100 health providers, conducted by Devenir in July 2020.
The report estimates that the overall value of HSAs, representing both investments and deposits, will hit $77.8 billion in 2020, up around 19% from $65.9 billion in 2019. The value of these accounts is also predicted to increase to just under $105 billion by 2022.
By June 2020, the report noted that the total number of open HSA accounts hit 29.3 million, though 18% of them were unfunded. At the end of 2019, there were 28.3 million accounts, with 15% unfunded. Still, the report found that almost half of all current HSA accounts have been opened since 2018, while a third of all HSA assets are in accounts opened since 2018 as well.
Over the past few years, HSAs are also retaining more of their value after net contributions and withdrawals. In 2018, for instance, retained assets in HSAs totaled $8 billion, which rose to $9.5 billion in 2019. By mid 2020, retained assets were at $7.3 billion.
To be sure, a growing number of HSAs also include investments assets as well as deposits. The report found that the value of those assets totaled $10.2 billion in 2018, and $15.7 billion in 2019. In 2020, the report estimates their value will hit $20.1 billion, while increasing to over $30 billion by 2020.
HSAs’ growing popularity and value may be tied to the fact that such accounts are being offered by more employers throughout the U.S. In September, the Bureau of Labor Statistics reported that, compared to just a few years ago, more companies of all sizes were offering HSAs, though they were most prevalent in large companies with over 500 employees.
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