Financial firms that administer health savings accounts say they have opened more than 1.17 million accounts and manage about $1.5 billion in assets -- up more than 50 percent since the beginning of the year.
Based on financial data provided by more than 60 financial firms, findings were included in an August edition of Inside Consumer-Directed Care (ICDC), a biweekly subscription newsletter published by Atlantic Information Services Inc.
Similar to 401(k) retirement plans in their portability, HSAs can be opened by virtually anyone who has a high-deductible health plan (at least $1,050 annually for single coverage and $2,100 for couples and families in 2006).
Collectively, HSA administrators and custodians say they are opening about 50,000 new accounts each month. The average HSA balance grew from $1,181 in January to $1,260 now, the ICDC data show. The higher average balance illustrates that account holders are more likely to use HSAs as savings vehicles than as spending accounts, administrators say.
"Over the past four years, just about every major health insurer has launched some type of account-based consumer-directed health coverage. Over the next couple of years, we'll see every major financial firm add HSAs to their product portfolios," says ICDC managing editor Steve Davis. "With $1.5 billion in assets already and 54 percent growth in just six months, there's certainly a lot of money up for grabs."
