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A summary of the articles included in the October 2021 edition:
- HSA Assets Approach $100 Billion Through First Half of 2021
- Trends in Health Savings Account Balances, Contributions, Distributions, and Investments and the Impact of COVID-19
- The Joys of a Health Savings Account, and 5 Ways You Can Use It In Retirement
- Credit Union HSA Update: 6/30/2021
- HealthEquity Announces Pricing of $500 Million Senior Notes Due 2029
HSA Assets Approach $100 Billion Through First Half of 2021
- Total HSA assets reached $92.9 billion, 26% increase year-over-year
- HSA dollars that are invested soared to $30.4 billion, up 73% year-over-year
- There are now over 31 million health savings accounts, a 6% increase year-over-year
- Almost $24 billion was contributed to health savings accounts in the first half of 2021
Devenir, a national leader in providing investment solutions for health savings accounts (HSAs), released the results of its 22nd semi-annual health savings account survey and resulting research report. Devenir found that there is now almost $93 billion saved in over 31 million HSAs halfway through 2021.
Trends in Health Savings Account Balances, Contributions, Distributions, and Investments and the Impact of COVID-19
HSAs offer a valuable tax incentive to set aside money on a tax-favored basis for current or future medical expenses. However, account owners often appear to be using the accounts primarily to cover current expenses, such as deductibles, coinsurance, and copayments, rather than fully taking advantage of the tax preference by contributing the maximum or maintaining HSA balances for retirement health care expenses. Further, use of investments other than cash within HSAs remains low.
The Joys of a Health Savings Account, and 5 Ways You Can Use It In Retirement
A Health Savings Account (HSA) lets you save money in a tax-advantaged account and then withdraw cash tax-free to pay for qualified medical expenses. Often, the money is used while you’re working. But you can also use your HSA in retirement to help lower your out-of-pocket medical costs then. Doing so could help stretch your retirement savings, too.
HealthEquity Announces Pricing of $500 Million Senior Notes Due 2029
HealthEquity (NASDAQ: HQY), the nation’s largest health savings account (HSA) non-bank custodian, today announced that it has priced an offering of $500 million aggregate principal amount of its 4.500% senior notes due 2029. The senior notes will be guaranteed by certain of HealthEquity’s subsidiaries on a senior unsecured basis. HealthEquity intends to use the net proceeds from the offering, together with cash on hand and borrowings under new credit facilities, to refinance outstanding amounts under its existing term loan and/or for general corporate purposes. The offering is expected to close on October 8, 2021, subject to the satisfaction of customary closing conditions.