by WEX Benefits
Health Savings Accounts (HSAs) are a savings and investment go-to account for healthcare consumers. But it wasn’t always that way. HSAs have only been around since 2004. Because these accounts are so new, employers and employees are still developing habits on how they engage with them. The trends can shift quickly. We wanted to share with you five key industry statistics from the Devenir Research 2019 Year-End HSA Market Statistics and Trends Report, which was released last week.
HSA assets: +23%
HSA assets continued their annual climb in 2019, reaching nearly $66 billion by the end of December. That’s a 23 percent increase from the end of 2018. And the number of accounts grew 13 percent from the previous year, with over 28 million HSAs now open.
HSA investment assets: +54%
Buoyed by a surging stock market, HSA investment assets in 2019 increased 54 percent from the previous year, eclipsing $15 billion. And more HSA participants are taking advantage of the account’s long-term growth potential. More than 1.2 million accountholders invested HSA funds in 2019.
Investor balances: +10%
By encouraging your employees build their balances and invest, you’re helping them reach their retirement-planning goals. In 2019, the average HSA investment accountholder had combined investment and deposit assets of just over $16,000, which is nearly a 10 percent increase from a year ago.
Accountholder contributions: +14%
The amount of funds HSA participants are contributing has steadily risen year-over-year, and that ascent continued in 2019. Participants contributed $38 billion to their HSAs last year, which was an increase of 14 percent from 2018.
Average employer contribution: +$41
Offering an HSA contribution to your employees is a great way to boost participation, which helps you and them save money. In 2019, the average employer contribution was $880, which is a $41 increase from the $839 average we saw a year ago.
The WEX Health Cloud platform helps employers, consumers and benefits administrators navigate the complex consumer-directed healthcare market by efficiently administering HSAs, HRAs, FSAs, VEBAs, COBRA, defined-contribution, wellness and transit plans. Learn about it here.