Health Savings Account Assets Up 22% in 2017

MINNEAPOLIS — Devenir, a national leader in providing investment solutions for health savings accounts (HSAs), released today the results of its 15th semi-annual health savings account survey and resulting research report. Devenir found HSAs grew to an estimated $45.2 billion in assets in over 22 million accounts at the end of 2017 and that by the end of January 2018 HSA assets had risen to almost $50 billion.

HSA Assets by Year as of 6/30/17

The survey data was collected between January and February of 2018 and primarily consisted of top 100 HSA providers in the health savings account market, with all data being collected for the December 31st, 2017 period as well as a January month-end update, since we have historically found it to be such a significant month for the industry

Key findings from the Devenir 2017 Year-End HSA Survey and resulting research report:

  • HSA accounts exceed 22 million. The number of HSA accounts rose to 22 million, holding over $45 billion in assets, a year over year increase of 22% for HSA assets and 11% for accounts for the year ended December 31st, 2017.
  • HSA investments accelerate asset growth. A strong market helped propel HSA investment assets to an estimated $8.3 billion at the end of December, up 53% year over year. The average investment account holder has a $16,457 average total balance (deposit and investment account).
  • Seasonally low unfunded accounts. Less HSAs (20 percent) were unfunded at the end of 2017 compared to 24 percent at the end of 2016.
  • Employer relationships become the largest driver of account growth. Direct employer relationships became the leading driver of new account growth, accounting for 41% of new accounts opened in 2017.

“A strong stock market and increased awareness of the role HSAs can plan in planning for retirement healthcare costs propelled HSA investment assets higher, with HSA investments seeing the highest growth rate in over five years,” said Jon Robb, senior vice president of research and technology at Devenir.

Devenir projects that, by the end of 2019, the HSA market will likely exceed $60 billion in HSA assets covering roughly 27.5 million accounts.

Click here to view the Executive Summary

Projections derived from 2017 Year-End 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 is a national leader in providing customized investment solutions for HSAs and the consumer directed health care market. When health savings accounts first emerged in 2004, Devenir built its expertise around delivering cutting-edge investment solutions. As the consumer driven health care industry grew, so did Devenir’s reputation as a leading researcher and award-winning investment consultant. Today, Devenir continues to lead the way in the rapidly growing HSA market. A research driven perspective makes Devenir the go-to investment advisor, HSA investment platform and consultant to employers, banks, third party administrators, health plans and technology providers. Learn more at devenir.com

Contact
Devenir
Eric Remjeske
952-446-7400
research@devenir.com