The number of health savings accounts (HSAs) surpassed 21 million, holding about $42.7 billion in assets, according to a research report by Devenir. The investment advisor firm noted that represents a year-over-year increase between June 30, 2016 and June 30, 2017, of 23% for HSA assets and 16% for the accounts.
Looking forward, Devenir noted that HSA providers project 21% HSA industry asset growth in 2017, while anticipating their own businesses will grow by 25% during the same period.
“In previous surveys, HSA providers have been reasonably accurate with their growth forecasts, demonstrating an impressive understanding of the outlook for their book of business,” according to Devenir. The firm currently projects that the HSA market will exceed $60 billion in HSA assets in nearly 30 million accounts by the end of 2019.
Here are other findings from the report:
- Drop in number of unfunded accounts. Fewer HSAs (20%) were unfunded halfway through 2017, compared to 24% at the end of 2016.
- HSA investments see substantial growth. HSA investment assets reached an estimated $6.8 billion in June, up 44% year over year. The average investment account holder has a $15,146 average total balance (deposit and investment account).
- Health plans remain the largest driver of account growth. Health plan partnerships accounted for 36% of new accounts opened in 2017 so far.
The data in the report primarily came from the 2017 Midyear Devenir HSA Market Survey of the top 100 HSA providers, which was conducted in July 2017.
Devenir’s report can be found at here.