HSA account holders have accumulated over $51 billion in these special saving plans — a 20.4 percent increase since last year. And the number of HSAs has grown over 11 percent, totaling 23.4 million accounts, according to the 2018 Midyear Devenir HSA Market Survey.
But the study indicates that many people who do have HSAs aren’t taking advantage of the account’s long-term benefits. Through the first half of 2018, total HSA contributions were about $19.8 million, while withdrawals totaled over $13.7 million. That means most people use their HSA as a pass-through and are getting only the advantage of a tax-free way to pay for out-of-pocket medical costs.
The study also indicates that over 80 percent of HSA assets aren’t invested in any of a wide range of available investments. Invested HSA assets total only $10 billion, less than 20 percent of the total. The average HSA balance is about $2,200, but HSAs with invested assets have an average balance of more than $16,000, or over seven times higher.