HSAs saw dramatic growth in 2010, study finds

MINNEAPOLIS — Health savings accounts surpassed $10 billion at year-end 2010, according to a survey and the resulting research report conducted by Devenir, an investment firm that specializes in providing investment options for HSAs.

The survey data was collected in January 2011 and primarily consisted of top 30 custodians in the health savings account market. All data was requested for the calendar 2010 year ended Dec. 31. “The survey was conducted in order to help shed light on the rapidly growing and evolving health savings account market,” stated Eric Remjeske Devenir president.

Key findings from the Devenir 2010 survey and research report included:

  • HSAs continue to see dramatic growth as the total number of HSA accounts rose to 6.2 million with assets totaling almost $10.1 billion, a year-over-year increase of 27% for accounts and a 41% increase in assets;

  • The average account balance grew almost 11% in 2010 to $1,627; and,

  • HSA investment assets reached an estimated $725 million in 2010 (102% year-over-year increase), and are projected to reach $10.3 billion by the end of 2015.

Devenir conservatively projected the HSA market to reach $61 billion in assets by the end of 2015, a 43% compound annual growth rate over the next five years. Devenir also projected that HSA investment dollars will continue to grow quickly as health savings account user’s balances become larger, representing 17% of all HSA assets by the end of 2015.