Top 20 HSA Market Concentration – 2023 Midyear Update

  • September 22, 2023
  • By Blake

In our 2022 update, we found that the Health Savings Account (HSA) market has become more concentrated over time as the largest providers have continued to gain market share through a combination of organic growth and M&A activity. The Herfindahl-Hirschman Index (HHI) indicated minor concentration within the HSA market.

Using data from our 2023 Midyear HSA Research Report, we recalculated the HHI for the top 20 HSA providers and found a modest increase from a year ago. Market share, as measured by total assets, among the top 5 providers ticked up to 70%, up from 69% at the 2022 midyear point.

Devenir will continue to monitor the ever-changing competitive landscape of the HSA market and look forward to providing additional updates in the future. If you have any comments or questions, feel free to contact our research team at [email protected].

HHI Index (Max 10,000)
0-1,000 – Competitive
1,000-1,500 – Minor concentration
1,500-2,000 – Concentrated
2,000+ – Heavily concentrated
A chart of the HSA market's HHI, showing increasing concentration in the industry over time

Methodology: Market concentration is measured using the Herfindahl-Hirschman Index (HHI) and the market shares (as measured by total assets) of the top 20 largest HSA providers. The HHI is calculated by squaring the market share of each firm competing in the market and then summing the results. For example, for a market consisting of 4 firms with shares of 30, 30, 20, and 20 percent, the HHI is 2,600 (302 + 302 + 202 + 202 = 2,600). A higher HHI generally indicates a higher level of concentration and a less competitive market.