HSA assets hit $100B milestone in 2022

Americans had invested more than $100 billion in more than 333 million health savings accounts as of the end of January, according to the Devenir 2021 Year-End HSA Survey.

“We always knew HSA assets would hit $100 billion, and it’s encouraging to see it occur in January of 2022, consistent with our prior estimates of the 2022 timeframe,” said Eric Remjeske, president of the company.

Among the highlights of the survey:

Healthy growth in HSA assets. Driven by robust investment growth, HSAs grew to $98 billion in assets held in more than 32 million accounts, a year-over-year increase of 19 percent for assets and 8 percent for HSAs for the period ending December 31.

Strong HSA investment asset growth. With a growing base of investors and continued strong market gains, HSA investment assets rose to an estimated $34.4 billion at the end of the year, up 45 percent year-over-year. On average, investment account holders have a $19,224 total balance (deposits and investments combined).

Participation in HSA investing increases. More than two million HSAs have at least a portion of their HSA dollars invested, representing more than 7 percent of all accounts. HSA contribution and withdrawal growth remains muted. Account holders contributed more than $42 billion to their accounts in 2021 (up 2 percent from the previous year) and withdrew almost $31 billion from their accounts in 2021 (up 2 percent).

Devenir currently projects that the HSA market will reach 38 million accounts by the end of 2024, holding $150 billion in assets.

“Over the past 11 years, health-care consumers have contributed almost $300 billion to their HSAs, used their HSA to pay for over $200 billion in medical expenses and have now accumulated over $100 billion in savings for future medical expenses,” said Jon Robb, senior vice president of the company.