Devenir Research Midyear HSA Market Statistics & Trends Executive Summary Midyear Devenir HSA Research Report

Transcription

1 Devenir Research 2018 Midyear HSA Market Statistics & Trends Executive Summary r e p o r t r e l e a s e d a t e : Midyear Devenir HSA Research Report

2 Table of Contents Key Findings... 3 HSA Industry Level Account Data... 4 Industry Contributions and Withdrawals... 5 HSA Investments... 6 HSA Marketplace Projections... 7 About Devenir... 8 Report Methodology The majority of this report was derived from the 2018 Midyear Devenir HSA Market Survey. This survey was conducted in order to continue to shed light on the rapidly growing and evolving health savings account market. The survey was carried out in July, 2018 and primarily consisted of top 100 HSA providers in the health savings account market. All data was requested for the period ending on June 30th, All estimates and projections reflect the current environment surrounding health savings accounts and are barring any regulatory changes to the market. Certain data points from the survey were omitted from this report due to inconclusive data or an incomplete sample set. All statistics are produced using the best available data set, which may at times leave certain statistics unreconciled with others, both within this report and with previous reports. Survey responses were self-reported by each HSA provider. Devenir attempts to verify responses when possible through a variety of channels including but not limited to press releases, annual reports, prior research, and FDIC filings Midyear Devenir HSA Research Report

3 Key Findings Healthy HSA asset growth. The number of HSA accounts reached 23.4 million, holding $51.4 billion in assets, a year-over-year increase of 20% for HSA assets and 11%* for accounts for the period ended June 30th, HSA investment assets approach $10 billion. Backed by a strong market, HSA investment assets reached an estimated $9.8 billion at the end of June, up 45% year-over-year. The average investment account holder has a $16,007 average total balance (deposit and investment account). Fewer unfunded accounts. Less HSAs (15%) were unfunded at the midway point of 2018 compared to 20% at the same time in Employer relationships are the largest driver of account growth. Direct employer relationships are the leading driver of new account growth, accounting for 42% of new accounts opened in the first half of $74.7 Total HSA Assets (in billions) $64.2 $16.7 $54.0 $13.8 $45.2 $10.9 $37.0 $8.3 $1.7 Investments Deposits $3.4 $1.6 $3.2 $5.5 $7.2 $5.3 $6.8 $9.9 $9.0 $12.2 $11.1 $15.5 $1.7 $ $19.3 $2.3 $17.1 $24.2 $3.2 $21.0 $30.2 $4.2 $26.0 $5.5 $31.5 $36.9 $43.1 $ $ Source: Estimates derived from 2018 Midyear Devenir HSA Market Survey, press releases, previous market research and market growth rates Midyear Devenir HSA Research Report

4 HSA Industry Level Account Data Account growth in the first half of 2018 was in-line with recent years. Overall, accounts grew by 5.2% in the first half of 2018, compared with 5.0% in 2017, 8.5% in 2016, and 5.5% in We continue to see seasonality in the percentage of accounts that are unfunded as accounts are opened during the fall open enrollment season, but often not funded by employers until the beginning of the following year. Halfway through 2018, about 15% of all accounts were unfunded, down from 20% a year ago. This drop off in the percentage of unfunded accounts can largely be attributed to a continued uptick in the closure of accounts, with many HSA providers noting that they were cleaning up dormant accounts. Total HSA Accounts 16.75M 18.17M 20.03M 21.03M 22.21M 23.38M 13.77M 14.53M 6.32M 6.76M 7.09M 8.23M 9.14M 10.70M 11.79M Funded Accounts Non-Funded Accounts Average Balance By Year The Account Opened 6/30/2018 6/30/2017 6/30/2016 6/30/2015 6/30/2014 6/30/2013 6/30/2012 $10,000 $9,289 $8,472 $8,000 $6,819 $6,000 $4,000 $2,000 $5,897 $5,350 $4,734 $3,992 $3,242 $2,758 $2,384 $1,985 $1,933 $1,303 $844 $ Year Account Opened Midyear Devenir HSA Research Report

5 Industry Contributions and Withdrawals $30 $25 $23 $25 $28 Industry Contributions & Withdrawals (in billions) $23 $20 $19 $20 $20 $16 $17 $15 $10 $11 $13 $8 $10 $13 $12 $14 $5 $3 $3 $4 $6 $6 $6 $5 $6 $- Contributions Withdrawals Carry Forward YTD Below is an industry estimate of total contributions and withdrawals for the period 1/1/18-6/30/ YTD Activity Contributions Withdrawals Retained Assets % Retained Estimated Industry Totals $19,753,000,000 $13,695,000,000 $6,058,000,000 31% 2018 YTD Employer Contributions 32% of all HSA dollars contributed to an account came from an employer. The average employer contribution was $658 (for those making contributions) YTD Employee Contributions 52% of all HSA dollars contributed to an account came from an employee. The average employee contribution was $1,086 (for those making contributions) YTD Individual Contributions 14% of all HSA dollars contributed to an account came from an individual account not associated with an employer. The average individual contribution was $1,436 (for those making contributions). The remaining contributions in the first half of 2018 came from IRA Rollovers & other sources Midyear Devenir HSA Research Report

6 Industry Contributions and Withdrawals - Details 2018 YTD Average Number of Withdrawals Per Account % Of Total Withdrawals (#) Average Transaction Size Debit Card % $ Check 0.1 2% $ Online Bill Pay 0.2 3% $ ATM 0.5 4% $74.76 Unknown 0.4 4% $ HSA Investments -- $9.8 billion estimated in HSA investment assets as of June 30th, 2018, an estimated 45% yearover-year increase. -- $16,007 average total balance (deposit and investment account) of an HSA investment account, over 8 times larger than a non-investment holder s average account balance % of all HSA assets are in investments as of June 30th, $16.7 $13.8 HSA Investment Assets (in billions) $10.9 $8.3 $5.5 $0.1 $0.2 $0.2 $0.4 $0.9 $1.1 $1.7 $2.3 $3.2 $ Year % 5% 4% 5% 7% 8% 11% 12% 13% 14% 15% 18% 20% 21% 22% % HSA Assets in Investments Midyear Devenir HSA Research Report

7 HSA Marketplace Projections HSA providers continue to project HSA industry asset growth of 19% in 2018, while anticipating their own businesses will grow by 24% during the same period. In previous surveys, HSA providers have been fairly accurate with their growth forecasts, demonstrating an impressive understanding of the outlook for their book of business. Devenir currently projects that the HSA market will approach $75 billion in HSA assets by the end of 2020, held among over 29 million accounts Midyear Devenir HSA Research Report

8 About Devenir Devenir is a national leader in providing customized investment solutions for HSAs and the consumer directed health care market. When health savings accounts first emerged in 2004, Devenir built its expertise around delivering cutting-edge investment solutions. As the consumer driven health care industry grew, so did Devenir s reputation as a leading researcher and award-winning investment consultant. Today, Devenir continues to lead the way in the rapidly growing HSA market. A research driven perspective makes Devenir the go-to investment advisor, HSA investment platform and consultant to employers, banks, third party administrators, health plans and technology providers. Learn more at devenir.com. Devenir Research as mentioned in: Devenir Research Team Jon Robb Senior Vice President, Research & Technology Eric Remjeske President Thank you for your participation! 2018 by Devenir Group, LLC For further information, please contact Devenir Research at or research@devenir.com Midyear Devenir HSA Research Report