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.
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.
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.
Disclaimer: the content presented in this article are for informational purposes only, and is not, and must not be considered tax, investment, legal, accounting or financial planning advice, nor a recommendation as to a specific course of action. Investors should consult all available information, including fund prospectuses, and consult with appropriate tax, investment, accounting, legal, and accounting professionals, as appropriate, before making any investment or utilizing any financial planning strategy.