Each month Devenir highlights a selection of articles to keep you abreast of the latest trends and developments in the HSA marketplace.
A summary of the articles included in the September 2017 edition:
- Health Savings Account Assets Reach $42.7 Billion in June
- CDC: Health Insurance Coverage: Early Release of Estimates From the National Health Interview Survey, January – March 2017
- HSA Bank Survey Finds Health Plan Education, Cost, and Congress Top of Mind for Industry Professionals
- Health Care Costs for Retirees Rise to an Estimated $275,000, Fidelity Analysis Shows
- Credit Unions See Double-Digit HSA Growth
- Are HSA Investors Saving Enough for Healthcare?
Health Savings Account Assets Reach $42.7 Billion in June
Key Findings from the 2017 Midyear Devenir HSA Survey and resulting research report:
- Strong HSA asset growth. The number of HSA accounts surpassed 21 million, holding about $42.7 billion in assets, a year over year increase of 23% for HSA assets and 16% for accounts for the period of June 30th, 2016 to June 30th, 2017.
- HSA investments see substantial growth. HSA investment assets reached an estimated $6.8 billion in June, up 44% year over year. The average investment account holder has a $15,146 average total balance (deposit and investment account).
- Unfunded accounts come down. Less HSAs (20 percent) were unfunded halfway through 2017, compared to 24 percent at the end of 2016.
- Health plans remain the largest driver of account growth. Health plan partnerships continued as the leading driver of new account growth, accounting for 36% of new accounts opened in 2017 so far.
CDC: Health Insurance Coverage: Early Release of Estimates From the National Health Interview Survey, January – March 2017
According to an early release of estimates from the National Health Interview Survey, 42.3% of persons under age 65 with private health insurance were enrolled in an HDHP, including 16.9% who were enrolled in a CDHP (an HDHP with a health savings account [HSA]) and 25.3% who were enrolled in an HDHP without an HSA, during the first three months of 2017.
HSA Bank Survey Finds Health Plan Education, Cost, and Congress Top of Mind for Industry Professionals
According to a survey conducted by HSA Bank, the majority (71 percent) of health plan professionals believe Americans lack a comprehensive understanding of their health plan coverage. The survey also found that consumers with an HSA-based plan may have a better understanding of their plan than consumers with non-HSA-based plans.
Health Care Costs for Retirees Rise to an Estimated $275,000, Fidelity Analysis Shows
Fidelity’s most recent estimate finds that a 65-year old couple will need $275,000 in retirement to cover health care and medical expenses. That is a six percent increase over last year’s estimate and a 70 percent increase since Fidelity’s first estimate in 2002. Fidelity also finds that more employers are offering HSAs and other programs to help employees manage health care costs.
Credit Unions See Double-Digit HSA Growth
Credit unions offering HSAs saw HSA deposits grow by more than 17% last year. With the rapid growth in the HSA market overall, there is ample opportunity for additional HSA growth in the credit union space.
Are HSA Investors Saving Enough for Healthcare?
HSAs have become an important part of the healthcare retirement picture for millions of Americans as employers continue to realize the cost saving benefits of HSAs. Yet, most HSA investment account holders are not saving enough to cover the $275,000 in health care and medical expenses Fidelity estimates a couple will need in retirement.