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A summary of the articles included in the May 2020 edition:
- 2019 Credit Union Health Savings Account Update
- HSA Bank to Acquire Health Savings Accounts from State Farm Bank
- Health Savings Account Deposit Rates – 2020 Update
- How HSA Growth is Impacting the Financial Services Industry
- HSA Investments: Mutual Fund vs. Self-Directed Brokerage Account Holders
- CMS: Health Insurance Exchanges 2020 Open Enrollment Report
2019 Credit Union Health Savings Account Update
Devenir published our latest analysis of how health savings accounts are faring among credit unions, finding at the end of 2019 credit unions held about $1.76 billion in HSA deposits.
HSA Bank to Acquire Health Savings Accounts from State Farm Bank
Webster Financial Corporation, the holding company for Webster Bank, N.A. and its HSA Bank division, announced that HSA Bank has signed a definitive agreement to acquire the existing HSAs of State Farm Bank, F.S.B., a subsidiary of State Farm Mutual Automobile Insurance Company, America’s largest property and casualty insurance provider.
Health Savings Account Deposit Rates – 2020 Update
The coronavirus pandemic in the United States forced the Federal Reserve to cut rates close to zero in order to dampen the effect of the virus on the U.S. economy. In this unique time, Devenir has been observing how health savings account (HSA) providers have reacted to the rate cut.
How HSA Growth is Impacting the Financial Services Industry
Harland Clarke’s inaugural HSA benchmarks survey was sent to 5,500+ financial clients in late 2019 to measure the impact of Health Savings Accounts as a growing source for low-cost deposits and an important strategy in retirement planning. Respondents were split among banks and credit unions, as well as community banks, providing important feedback across a broad spectrum of institutions for a deeper understanding of this promising revenue stream.
HSA Investments: Mutual Fund vs. Self-Directed Brokerage Account Holders
HSA investments have grown rapidly in recent years, reaching 24% of total assets and over 1.2 million (4%) accounts as of 12/31/2019. The average investment balance for investment account holders has grown to $12,695 in 2019, from roughly $5,000 in 2011. When it comes to investing, HSA account holders generally have the option to choose from a list of pre-selected mutual funds, however, some HSAs allow for investment in a linked self-directed brokerage option (allowing investment in individual securities).
CMS: Health Insurance Exchanges 2020 Open Enrollment Report
Seven percent of consumers with plan selections in states that use the HealthCare.gov platform enrolled in HSA-eligible plans in the 2020 open enrollment period (OEP), which is a decline from eight percent of consumers with plan selections in the 2019 OEP.