Friday, August 18, 2006
HSA growth exceeds expectations
["HSAs Growing Apace To Reach 3.6 Million Accounts By January, 2007," Press Release, Information Strategies, Inc., 17 August 2006.]
A new survey reveals that health savings accounts have staying power in the marketplace:
Defying critics and demonstrating resilient expansion, Health Savings Accounts (HSAs) continued their strong growth trajectory with indications that this fall’s sign-ups will blow past estimates.
Information Strategies, Inc. quarterly survey of more than 150 HSA custodial advisors indicates that total accounts will pass 3.6 million by January 2, 2007 managing $5.2 billion.
In its latest survey, ISI found substantial growth in deposits, particularly from industry leaders such as HSA Bank reporting 7,000 new accounts in this quarter raising its total accounts to 157,814.
Other custodians report similar increases. It is the new custodians reporting for the first time that indicate growth in HSAs has not slowed but rather deepened.
Based on its collecting of data from more than 150 custodians and reflecting some changes in HSA purchaser patterns first reported in May, ISI is estimating that 1.7 million total accounts will have put away $2.4 Billion in deposits by the end of the second quarter.
From the end of April to the beginning of July, almost all providers reported an increase in the total number of HSA accounts with average deposits growing to $1,940 for those accounts opened more than a year and $1,090 for those opened less than a year, on average. All banks reported an increase in deposits with $1,200 being the average deposit for each account, though deposits ranged from $450 to $2,316.
Much of the deposited money is staying in the account. The majority of banks surveyed said at least 40% of deposited funds are staying put. Blackhawk Bank, for example, estimates that less than 10% of the money deposited into its HSAs is actually being spent.
[Kenneth Daniel, "AFL-CIO to attack health savings accounts," The Kansas City Kansan, 17 February 2006.]
A new survey reveals that health savings accounts have staying power in the marketplace:
Defying critics and demonstrating resilient expansion, Health Savings Accounts (HSAs) continued their strong growth trajectory with indications that this fall’s sign-ups will blow past estimates.
Information Strategies, Inc. quarterly survey of more than 150 HSA custodial advisors indicates that total accounts will pass 3.6 million by January 2, 2007 managing $5.2 billion.
In its latest survey, ISI found substantial growth in deposits, particularly from industry leaders such as HSA Bank reporting 7,000 new accounts in this quarter raising its total accounts to 157,814.
Other custodians report similar increases. It is the new custodians reporting for the first time that indicate growth in HSAs has not slowed but rather deepened.
Based on its collecting of data from more than 150 custodians and reflecting some changes in HSA purchaser patterns first reported in May, ISI is estimating that 1.7 million total accounts will have put away $2.4 Billion in deposits by the end of the second quarter.
From the end of April to the beginning of July, almost all providers reported an increase in the total number of HSA accounts with average deposits growing to $1,940 for those accounts opened more than a year and $1,090 for those opened less than a year, on average. All banks reported an increase in deposits with $1,200 being the average deposit for each account, though deposits ranged from $450 to $2,316.
Much of the deposited money is staying in the account. The majority of banks surveyed said at least 40% of deposited funds are staying put. Blackhawk Bank, for example, estimates that less than 10% of the money deposited into its HSAs is actually being spent.
[Kenneth Daniel, "AFL-CIO to attack health savings accounts," The Kansas City Kansan, 17 February 2006.]
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