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HealthSavings Tops Devenir Report for Investment-Focused HSAs

HealthSavings Tops Devenir Report for Investment-Focused HSAs

 

The recent “Devenir Research 2018 Year-End HSA Market Report” found that HSA accountholder contributions jumped to $33.7 billion and investment assets reached an estimated $10.2 billion by the end of 2018. However, the majority of HSA providers still focus on the spend/save dynamic and enforce minimum cash balances before accountholders can invest assets.

In contrast, HealthSavings leads the market for investment-focused HSAs and encourages accountholders to invest all their health benefit dollars in institutional-class funds from the start with no minimum balance requirements. Here are a few of the ways that HealthSavings is setting the bar for investment-focused HSAs:

  • HealthSavings’ average account balance was $10,607, which is 5x higher than the industry average of $2,144
  • • 39% of HealthSavings’ accountholders maintained a balance over $5,000, which is 250% higher than the industry average of 11%
  • HealthSavings had a retained contribution rate of 39%, while is over 60% higher than the industry average of 24%
  • HealthSavings’ average investment balance was $15,528, which is 42% higher than the industry average of $10,948
  • • Only 2.5% of HealthSavings’ accounts were unfunded, which is over 80% lower than the industry average of 16%
  • HealthSavings’ weighted average expense ratio is 12 bps, which is 75% lower than the industry average of 47 bps

HSAs have become an essential part of the retirement planning mix, and financial advisors and investors are well-served to take a closer look at the tax-free, long-term investment opportunity HSAs can deliver. By going against the industry norm of pigeonholing HSAs as a spending account, HealthSavings is setting the industry standard for investment-focused HSAs and is the clear choice for investment-minded employers, financial advisors, and health insurance brokers.

For a visual look at how HealthSavings is leading the charge for the next era of investment-focused HSAs, see this infographic.

Author: Craig Keohan

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