HSAs aren’t new. In fact, they have been around since 2003. However, HSA growth in recent years has accelerated as consumers and employers begin to further understand their value for long-term health savings.

HSA Growth

Over the last several years, HSA account assets have grown 23% year over year. Which means there are now over 21 million accounts that encapsulate $42.7 billion in assets. That’s a big chunk of change that will provide health savings options, well into retirement for HSA participants.

The key drivers to growth are the increase of HSA compatible health insurance plans, like High Deductible Health Plans (HDHP). It should also be noted that 33% of employers contribute to employee HSA plans, so if you are part of this subset, count yourself lucky. Your employee is contributing to your long-term fiscal health.

One surprising data point is that 18% of HSA contributions came from individual accounts not associated with an employer. That’s right, even if your employer doesn’t offer an HSA or are self-employed, as long as you have a qualifying health plan, you can open an HSA to save for near term and long term health costs. Remember, unlike an FSA, there is no “use it to lose it” restrictions with an HSA. You can save for years to come.

HSA Investments

One key area of focus for HSA companies has been investments options. This allows employees and individuals to utilize the power of compound interest through investing to grow their accounts further. Investments saw 44% growth year over year and now account for over $6.8 billion in assets.

HSA Growth Projections

Research expert Devenir predicts that HSA assets will exceed $60 billion by the end of 2019, with over  30 million individual accounts. You can read more details in their mid-year 2017 report. No matter where the exact numbers end up in the next few years, the value of an HSA offering is becoming crucial for employers, employee, and individuals. We are Lively could not be more excited!

If you need more help with HSA decisions, check out our blog. We will make you a healthcare benefits expert in no time, without any extra work or effort on your end.