Balances in HSAs — tax-advantaged medical savings accounts — grew to some $11.7 billion in total assets, reflecting a 31% increase from the same time last year, according to data from Devenir Group LLC. Meanwhile, the total number of HSA accounts grew to 6.3 million, up 28% from the same period.
Health care reform and the current recession are propelling interest in the accounts, said Eric Remjeske, president and co-founder of Devenir. The regulatory changes have prompted firms to consider using high-deductible health care plans. HSAs are typically used in conjunction with high-deductible plans to cover qualified medical costs without tax liabilities.
“Companies started reviewing their health insurance as soon as they looked at the timeline for the health care reform,” Mr. Remjeske said. At the jumbo plan level, 50% of companies are using high-deductible health plans, he noted.