But HSA assets have taken off since then, mirroring the growth of high-deductible healthcare plans at large. (To take advantage of an HSA, one needs to be covered by a qualifying high-deductible healthcare plan.) At mid-2021, assets in HSAs approached $93 billion, a 26% increase from the year prior, according to a report from HSA consultant Devenir.
Most assets in HSAs aren’t invested in the market but rather are parked in savings accounts to cover out-of-pocket healthcare expenses. But assets in HSAs that are invested in long-term securities have grown rapidly, too. Devenir reported that HSA investment assets increased by 73% to more than $30 billion in the one-year period through June 2021, and the average HSA balance was nearly $18,000.