MINNEAPOLIS--(BUSINESS WIRE)--According to the 5th semi-annual Health Savings Accounts (HSAs) survey and resulting research report conducted by Devenir, HSAs have grown to an estimated $15.5 billion in assets representing over 8.2 million accounts at year-end 2012.
“With both record contributions and withdrawals in HSA accounts in 2012, we continue to see that not only are people using their HSA dollars for current medical expenses, but more importantly they are actually accumulating savings for future medical expenses”
The survey data was collected in January 2013 and primarily consisted of the top 50 HSA providers in the health savings account market, with all data being collected for the December 31st, 2012 period. “We continue to see strong adoption of consumer driven HSA qualified health plans and the resulting 2012 HSA account and deposit growth certainly validates this adoption” says Eric Remjeske, President and Co-Founder of Devenir.
Key findings from the Devenir Year-End 2012 survey and research report:
- Greater than expected growth. The total number of HSA accounts rose to more than 8.2 million with assets totaling $15.5 billion, a year over year increase of over 22% for accounts and a 27% increase in assets for the period from December 31st, 2011 to December 31st, 2012.
- Average account balance steadily grows. The average account balance at the end of 2012 grew to $1,879 from $1,807 at the end 2011, a 4% increase. When you eliminate identified zero balance accounts that average rises to $2,283, a 7% year over year increase.
- HSA contributions exceed $13 billion in 2012. Total contributions to HSA accounts are estimated to have reached $13.2 billion in 2012, with accountholders retaining about 23% of those contributions.
- HSA investment growth accelerates. HSA investment assets reached an estimated $1.7 billion in 2012, a 55% increase since the end of 2011. The average investment account holder has an $8,918 average total balance (deposit and investment account), almost 4 times the average accountholder balance.
“With both record contributions and withdrawals in HSA accounts in 2012, we continue to see that not only are people using their HSA dollars for current medical expenses, but more importantly they are actually accumulating savings for future medical expenses” said Jon Robb, Vice President of Research at Devenir. Devenir projects the HSA market may reach $26 billion in assets by the end of 2015, with HSA investment dollars growing rapidly and representing almost 21% of all HSA assets by the end of 2015.
Projections derived from Year-end 2012 Devenir HSA survey, press releases, previous market research, and market growth rates. Projections are barring any regulatory or market environment changes.
Forward-looking statements are based on current expectations and assumptions based on historical growth, the economy, other future conditions and forecasts of future events, circumstances and results.
Devenir, based in Minneapolis, is a national leader in providing customized investment solutions to the HSA Custodian marketplace. As an HSA industry leading investment firm, Devenir offers a host of investment options to suit the unique needs of employers, banks, third party administrators and plan participants. www.devenir.com