Each month Devenir highlights a selection of articles to keep you abreast of the latest trends and developments in the HSA marketplace.
A summary of the articles included in the March 2019 edition:
- The Number of Health Savings Accounts Exceeds 25 Million
- Azar Touts Funding HSAs With Obamacare Subsidies
- Health Insurance Coverage: Early Release of Estimates From the National Health Interview Survey, January-September 2018
- Tying HSAs to Retirement Savings
- Lively Releases 2018 Data Showing HSAs Used for Short-Term Fixes, Not Long-Term Savings
- Health-E Commerce Receives Majority Equity Investment from Beecken Petty O’Keefe & Company
The Number of Health Savings Accounts Exceeds 25 Million
Devenir, a national leader in providing investment solutions for health savings accounts (HSAs), released today the results of its 17th semi-annual health savings account survey and resulting research report. Devenir found that the number of HSAs grew to 25 million, holding an estimated $53.8 billion in assets at the end of 2018.
Azar Touts Funding HSAs With Obamacare Subsidies
The Trump administration is considering action on two fronts that could loosen up the reins on health savings accounts. HHS Secretary Alex Azar on Wednesday pushed the idea of funneling Affordable Care Act subsidies into HSAs for people in the individual market to pay for premiums and other out-of-pocket health spending. At the same time, the administration is exploring a proposal that would allow high-deductible plans with HSAs to cover preventive services such as providing free insulin.
Health Insurance Coverage: Early Release of Estimates From the National Health Interview Survey, January-September 2018
Early 2018 (Jan-Sept) estimates released from the CDC’s National Health Interview Survey finds in the first 9 months of 2018, 45.6% of persons under age 65 with private health insurance were enrolled in an HDHP, including 20.6% who were enrolled in a CDHP (an HDHP with a health savings account [HSA]) and 25.0% who were enrolled in an HDHP without an HSA.
Tying HSAs to Retirement Savings
A key problem with promoting HSAs as a retirement spending vehicle is that they are tied to medical benefits, and so that’s how participants think about them, Kelley Long, certified financial planner with Financial Finesse, told attendees of a webinar hosted by the Plan Sponsor Council of America (PSCA). She shared information to help employers promote HSAs as a retirement savings tool for employees.
Lively Releases 2018 Data Showing HSAs Used for Short-Term Fixes, Not Long-Term Savings
Lively released its first annual HSA Spend Report, giving a view into the healthcare expenses that cost consumers the most each year. Findings show that the average HSA account holder will spend 93 percent of their savings on everyday healthcare costs: doctor visits and services (41 percent); prescription drug costs (25 percent); dental care (9 percent); vision and eyewear (5 percent); chiropractor (5 percent); lab work (4 percent); and other (4 percent).
Health-E Commerce Receives Majority Equity Investment from Beecken Petty O’Keefe & Company
Health-E Commerce, the parent company of the FSAstore.com and HSAstore.com, announced that it has received a majority equity investment from Beecken Petty O’Keefe & Company, a Chicago-based private-equity firm focused exclusively on the healthcare industry. The transaction is effective immediately and financial terms were not disclosed.