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A summary of the articles included in the April 2022 edition:
- HSA Assets Hit $100 Billion Milestone
- Telemedicine Costs for Health Savings Accounts Eased by Omnibus
- Satisfaction With HDHPs Increases Over Time
- How Are HSAs Being Used Today?
- Credit Union HSA Update: 12/31/2021
HSA Assets Hit $100 Billion Milestone
Devenir, a national leader in providing investment solutions for health savings accounts (HSAs), released today the results of its 23rd semi-annual health savings account survey and resulting research report. Devenir found that there is now over $100 billion saved in over 33 million HSAs at the end of January 2022.
The survey data was primarily collected in January of 2022 for the period ending on December 31st, 2021.
“Over the past 11 years healthcare consumers have contributed almost $300 billion to their HSAs, used their HSA to pay for over $200 billion in medical expenses, and have now accumulated over $100 billion in savings for future medical expenses. HSAs have established themselves as an important tool to help consumers navigate healthcare costs, both now and in retirement,” said Jon Robb, SVP of research and technology at Devenir.
Telemedicine Costs for Health Savings Accounts Eased by Omnibus
Employers can resume covering telehealth for workers with health savings accounts before patients meet costly annual deductibles thanks to a provision in the omnibus spending bill approved by Congress.
Employer groups have called for lawmakers to extend and make permanent Covid-19 legislative provisions that expired at the end of 2021 that allowed them to provide coverage before annual deductibles are met for telehealth for workers with tax-advantaged health savings accounts.
Without the legislative changes, employers wouldn’t be able to provide telehealth coverage for high-deductible plans that are linked to health savings accounts, and employees would lose their eligibility to use health savings accounts. There are 30 million health savings accounts covering 63 million enrollees and family members, industry observers say.
Satisfaction With HDHPs Increases Over Time
Offering what are called high-deductible health plans can decrease overall health care spend for employers and can help certain participants save on health insurance costs.
But, paying for health care as it is used versus paying more upfront via payroll deduction can catch some people off guard. Two-thirds (63%) of employees enrolled in a traditional health plan were extremely or very satisfied with their overall health plan, compared with 44% of HDHP enrollees, according to the EBRI/Greenwald Research “Consumer Engagement in Health Care Survey.”
However, satisfaction levels among HDHP enrollees almost double when tenure with their health plan goes from less than one year to three or more years. The percentage reporting that they are extremely or very satisfied with their HDHP increases from 30% to 54%. In contrast, among traditional plan enrollees, satisfaction increases from 60% to 66%.
How Are HSAs Being Used Today?
HSAs are a valuable tool when it comes to retirement planning and investing. For those participants who are turning to these accounts as part of their long-term savings strategy, there are benefits. The average HSA balance for accounts that invest is 6.5 times larger than the average HSA balance for non-investment accountholders.
However, only about 7 percent of HSA accounts are investing. That’s why it’s important to communicate to participants in a way that resonates with whatever stage they’re at in their HSA lifecycle.
Credit Union HSA Update: 12/31/2021
Devenir tracks health savings accounts in the credit union industry closely through NCUA filings and a variety of other sources.
Key Credit Union Numbers
- $2.1 billion – Total HSA assets held at credit unions totaled $2.1 billion as of 12/31/21, up 6.6% year-over-year.
- 851 – There were 851 credit unions holding HSA assets as of 12/31/21 (17% of credit unions), up from 848 credit unions three years ago. There were 49 credit unions that each held at least $10 million in HSA assets as of 12/31/21.
- 45% – The 25 credit unions with the most HSA assets hold 45% of all HSA assets held at credit unions.
- $2,887 – Devenir estimates the average HSA balance at a credit union is $2,887 as of 12/31/21, up from $2,835 at the end of 2020.