Health Savings Accounts Grow to $14.1 Billion in June

MINNEAPOLIS – Health Savings Accounts (HSAs) are estimated to have grown to more than $14.1 billion in assets representing 7.1 million accounts through June 30th, 2012 according to a survey and resulting research report conducted by Devenir, an investment firm that specializes in providing investment options for HSAs.

The survey data was collected in July, 2012 and primarily consisted of top 50 HSA providers in the health savings account market, with all data being collected for the June 30th, 2012 period dating back to June 30th, 2011. “As we continue to research the HSA marketplace we are pleased with the credible and insightful data provided regarding HSA usage and adoption at an industry level,” says Eric Remjeske, President and Co-Founder of Devenir.

Key findings from the Devenir Midyear 2012 survey and research report:

  • The total number of HSA accounts rose to almost 7.1 million with assets totaling $14.1 billion, a year over year increase of over 12% for accounts and a nearly 21% increase in assets for the period from June 30th, 2011 to June 30th, 2012.
  • Average account balances in the first half of 2012 grew to $1,996 from $1,807 at the end of 2011, a 10% increase. When you eliminate identified zero balance accounts that average rises to $2,176.
  • Across the industry HSA account-holders have retained 30% of their contributions so far in 2012 up from 24% during calendar 2011.
  • HSA investment dollars continue to grow. HSA investment assets reached an estimated $1.3 billion in June, a 35% increase since the end of 2011 and 51% increase from June 30th, 2011.

“We continue to be very interested in understanding how HSAs are being funded and used, finding that both employers and employees are playing a significant role in contributing to HSAs to help save for future medical expenses,” said Jon Robb, Lead Research Associate with Devenir. Devenir projects the HSA market may reach $25 billion in assets by the end of 2015, with HSA investment dollars growing rapidly as health savings account user’s balances become larger, representing almost 19% of all HSA assets by the end of 2015.

Projections derived from Midyear 2012 Devenir HSA survey, press releases, previous market research, and market growth rates. Projections are barring any regulatory or market environment changes.

Forward-looking statements are based on current expectations and assumptions based on historical growth, the economy, other future conditions and forecasts of future events, circumstances and results.

About Devenir

Devenir, a full-service broker dealer and registered investment advisor based in Minneapolis, is a national leader in providing customized investment solutions to the HSA Custodian marketplace. As an HSA industry leading investment firm, Devenir offers a host of investment options to suit the unique needs of employers, banks, third party administrators and plan participants.