Three Emerging HSA Trends You Should Know Now
March 8, 2019
2018 was a milestone year for Health Savings Accounts (HSAs)! For the first time, the number of HSAs exceeded 25 million, as more Americans flock to these accounts for their healthcare and retirement-planning needs.
Devenir recently released its 2018 Year-End HSA Market Statistics and Trends report, which shows how HSA usage grew in 2018. We’ve summarized some of the key findings from the report below.
Participation up 133 percent in five years
In 2018, the number of HSAs increased 13 percent nationally year over year. That’s a 133 percent in just five years!
We saw our number of HSAs increase 31 percent from 2017 to 2018 as well, as we continue to regularly rank as one of the fastest-growing HSA administrators in the nation. That’s due in large part to innovative solutions that make it even easier for participants to learn more about their HSAs and access their funds.
“Discovery Benefits’ positioning in recent Devenir year-end reports speaks directly to the unparalleled support we receive from our brokers and consultants,” said our Chief Strategy and Planning Officer, Brian Carey. “We’re committed to providing the industry’s most responsive and dedicated service to make sure we’re meeting the needs of our clients and consultants.”
Investment assets increased 23 percent
HSAs are a premier retirement-planning tool, allowing participants to grow their funds even faster when invested. In 2018, more participants leveraged the investment potential of their HSAs, with investment assets increasing 23 percent from one year ago.
Investment assets in our participants’ HSAs increased 49 percent from 2017 to 2018. And we took steps last year to make the experience even better, releasing enhancements to investment features within participants’ online accounts.
Employers contributed $235 more, on average
HSAs are a win-win for you and your employees, since you both save when they participate in these accounts. In fact, among our clients, we’ve found that an employee is 23 percent more likely to participate in an HSA if their employer offers a contribution.
In January 2019, 38 percent of HSAs nationally received an employer contribution, which is nearly the same percentage as a year ago. However, what did change is the average amount employers contributed to their employees’ HSAs. In 2018, the average employer contribution increased to $839 (a 39 percent increase from the $604 average employer contribution in 2017).
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