Health Savings Accounts are estimated to have grown to more than $14.1 billion in assets through June 30, representing 7.1 million accounts, according to a survey and research report by Devenir, a broker-dealer and registered investment adviser based in Minneapolis.
This was a year over year increase of more than 12% for accounts and nearly a 21% increase in assets for the period from June 30, 2011 to June 30, 2012.
The survey data was collected in July 2012 and primarily consisted of top 50 HSA providers in the health savings account market.
“As we continue to research the HSA marketplace we are pleased with the credible and insightful data provided regarding HSA usage and adoption at an industry level,” says Eric Remjeske, president and co-founder of Devenir.
Other key findings from the Devenir Midyear 2012 survey and research report include:
•Average account balances in the first half of 2012 had a 10% increase; they grew to $1,996 from $1,807 at the end of 2011. When you eliminate identified zero balance accounts that average rises to $2,176.
•Contributions and withdrawals. Industry HSA account holders have retained 30% of their contributions so far in 2012, up from 24% during calendar 2011.
•HSA investment dollars continue to grow. HSA investment assets reached an estimated $1.3 billion in June, a 35% increase since the end of 2011, and 51% increase from June 30, 2011.
“We continue to be very interested in understanding how HSAs are being funded and used, finding that both employers and employees are playing a significant role in contributing to HSAs to help save for future medical expenses,” says Jon Robb, Lead Research Associate with Devenir.
The broker/dealer projects the HSA market may reach $25 billion in assets by the end of 2015, with HSA investment dollars growing rapidly as health savings account holders’ balances become larger, representing almost 19% of all HSA assets by the end of 2015.
