HSA Headlines - 3/8/19 - The current state of HSAs from Devenir
The bi-annual release of the Devenir HSA Report is almost like a holiday here at the HSAstore.com offices, as this is one of the most comprehensive surveys that provides a view into what Americans are really doing with these tax-free accounts.
So for this week's edition of HSA Headlines, we're focusing on one major headline, the "2018 Year-End HSA Market Statistics and Trends Executive Summary," and examining the most important statistical tidbits that came out of this latest iteration of the report. Let's dive in and see what the future holds for health savings!
Total HSA accounts and assets
HSAs are the fastest-growing consumer-directed healthcare account in America today, and this latest report bears this out yet again. As of the end of 2018, total number of HSAs have exceeded 25 million (up 13% year over year) and hit $53.8 billion in total assets, growing nearly 20% year over year by the end of 2018. While most industry experts were expecting a bit of a slowdown in HSA enrollment toward the tail end of 2018, 20% growth annually seems to be a trend that's sticking.
Fewer unfunded accounts
One of the statistical anomalies that has afflicted HSAs in recent years was that people were enrolling in high-deductible health plans (HDHPs) and opening HSAs, but not funding them. At the end of 2017, 20% of all HSAs were unfunded, and this rate dipped over the past year, dropping to only 16% at the end of 2018.
HSA users contributing more!
HSA users have heard the message loud and clear about how versatile their account funds can be in covering health expenses and long-term retirement savings. According to Devenir's report, HSA employee contributions are up massively: a total of $33.7 billion was contributed to accounts in 2018, a 22% increase from 2017.
More employer contributions
401(k) company matches are commonplace, but with more working professionals enrolling in HSAs to bolster their retirement savings, businesses large and small are making HSA contribution matches a part of their benefits packages. And this trend is catching on. In 2017, the average employer contribution to an HSA was $604, it grew to $839 in 2018.
HSA investments are up
Last but not least, total HSA investments achieved a major milestone in 2018, breaking the $10 billion mark in 2018 to settle at $10.2 billion in assets for the year. This is up 23% year-over-year and the average balance of an HSA investment is now $14,617.
Great news across the board to be sure! With HSA growth continuing unabated and new pieces of legislation moving through Congress that could dramatically expand these accounts, the future is bright for the HSA!
HSA Headlines is a weekly roundup of the latest, most relevant news and conversations about your health savings. It appears every Friday, exclusively on the HSA Learning Center. And for more about your physical and financial well-being, be sure to follow us on Facebook and Twitter.