RIDGEFIELD, N.J. — Predictions of the Health Savings Account boom may exceed expectations this fall.
A recent Information Strategies, Inc. survey of over 150 HSA bank custodians finds that growth in these accounts has deepened. 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 over a year and $1,090 for those opened less than a year.
In general, HSA bank deposits ranged from $450 to $2,316 with at least 40% of deposited funds remaining in the account. Of the providers tracking such information, the majority report more family than individual HSAs. The survey also finds that employers and companies continue to be the source of HSAs for the majority of providers.
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Experts have been touting HSAs not only as an opportunity for financial institutions to grow their deposit base, but also as a way in attracting new customers, including small business owners. Of 1,100 small businesses contacted, less than 10% said they were reducing health care expenditures, but 55% said they were poised to offer HSAs either as a single option or as part of a suite of health care insurance options. HSA providers are also noticing that as education on HSAs has increased, they are opening more accounts for people seeing the benefits of HSAs.
Given survey responses ISI predicts that by January 2007, total HSAs will pass 3.6 million with an estimated $5.2 billion.
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