By Kathryn Mayer
They just keep growing, and growing.
Health savings accounts
have surged to an estimated $18.1 billion in assets representing more than 9.1 million accounts.
That’s a 29 percent increase in both accounts and assets over last year, according to new research from broker/dealer Devenir.
Survey data was collected in July 2013 and primarily consisted of the top 50 providers in the HSA market.
Jon Robb, vice president of research at Devenir, said that employers and employees contributed “record amounts” to HSAs over the last year, with “large employers in particular making significant contributions to their employee’s HSA accounts in an effort to help drive adoption.”
Devenir said the average account balance continues gradual growth. The average balance halfway through 2013 grew to $1,981 from $1,879 at the end 2012, roughly a 5 percent increase.
HSA contributions also are rising sharply. Total contributions to HSA accounts from June 2012 to June 2013 are estimated to have reached $16.7 billion, with accountholders retaining about 23 percent of those contributions.
HSA investment assets reached an estimated $2 billion in June, up 14 percent from the end of 2012 and 26 percent year over year. The average investment
account holder has a $10,484 average total balance (deposit and investment account).
Eric Remjeske, president and co-founder of Devenir, said the research is “encouraging,” especially as employers make contributions to employees’ accounts.
And the trend will only become more widespread, experts said.
Devenir projects that by the end of 2013 the HSA market likely will approach $20 billion in HSA assets held in more than 10 million accounts.
Firms, including Fidelity
Investments and Wells Fargo, this year have reported record-breaking HSA enrollments.
Originally published on BenefitsPro.com