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A summary of the articles included in the July 2021 edition:
- HSAs Gain Traction With Older and Younger Americans Alike, Covering More Than 63 million People Across All 50 States at the End of 2020
- HSAs + Investments: A Powerful Savings Combination
- BMO Harris Bank and Lively to Modernize HSA Offering with Personalized Experience
- Achieving Better Outcomes with HSAs
- Lively Surpasses Half a Billion in Assets
- PSNC 2021: Health vs. Financial Decisionmaking
HSAs Gain Traction With Older and Younger Americans Alike, Covering More Than 63 million People Across All 50 States at the End of 2020
- The 30 million health savings accounts are helping cover eligible healthcare expenses for an estimated 63 million people.
- Almost 1 in 5 Americans in their 30s have a health savings account.
- Account holders older than 50 years old have stashed away over $44 billion in their HSAs for future healthcare expenses.
- HSAs are being utilized in every state and territory of the United States.
Devenir and the American Bankers Association’s Health Savings Account Council released today the results of the inaugural Devenir & HSA Council Demographic Survey and resulting research report. They found that 30 million health savings accounts that existed at the end of 2020 helped cover an estimated 63 million Americans.
HSAs + Investments: A Powerful Savings Combination
As HSAs continue to grow in popularity and the number of accounts steadily increases, financial institutions are starting to realize the full value of these accounts. However, as the HSA market becomes more competitive, providers must find new ways to differentiate themselves and provide value to their account holders. One way that institutions can help account holders take full advantage of their HSAs is to offer investments.
BMO Harris Bank and Lively to Modernize HSA Offering with Personalized Experience
Lively announced that it is working with BMO Harris Bank, to bring a modern HSA experience to eligible individual BMO customers and commercial banking clients making HSA arrangements for their employees and commercial customers through a new referral agreement. Beginning this fall, new HSAs will be delivered by Lively, providing BMO customers with a more engaging HSA experience that will help them make real financial progress through more powerful health savings tools.
Achieving Better Outcomes with HSAs
Data based on more than 3 million participants in 401(k) plans administered by Bank of America shows the average balance in health savings accounts (HSAs) increased 17% last year, with employee contributions jumping 10% from 2019. “Both participant and sponsor contributions increased, and the number of participants [contributing to HSAs] increased as well,” says John Quinn, managing director, head of institutional retirement products and platforms at Bank of America.
Lively Surpasses Half a Billion in Assets
Lively announced it has exceeded $500 million in HSA assets. Additionally, Lively’s recent IRS Non-Bank Trustee designation is a testament to both the company’s maturity and staying power as one of the top HSA providers on the market. “The exponential growth we’ve seen over the past year has been astounding,” said Shobin Uralil, COO and co-founder of Lively. “It took us 2.5 years to get to our first $100M in assets while our most recent $100M was added in just the last 4 months. We’re on track to be the fastest HSA provider to hit $1 billion, ever.”
PSNC 2021: Health vs. Financial Decisionmaking
“As health care costs rise, there is more overlap between health decisions and financial decisions,” said Stan Dorsey, director of health solutions thought leadership at Fidelity Investments, during a session presented by Fidelity at the 2021 PLANSPONSOR National Conference. Tamara Sims, director of behavioral science health solutions thought leadership at Fidelity, said that when looking at a person’s total well-being, one can’t just look at the person’s financial situation to know how to help them maintain stability over their lifetime. There are other factors to consider, such as health care.