For more stories like this, sign up for the PLANADVISERdash daily newsletter.
Data & Research May 25, 2010
Study Finds HSA Balances Getting Bigger
A study by J.P. Morgan found that health savings accounts with higher cash balances are becoming more common.
Reported by Rebecca Moore
J.P. Morgan’s HSA Program Snapshot found that 45% of health savings accounts (HSAs) had balances over $1,000 at the end of 2009, compared to 35% at the end of 2008. The percentage of accounts with balances under $500 decreased from 50% at the end of 2008 to 42% in 2009. The percentage of accounts with balances over $2,000 increased from 20% at the end of 2008 to 31% in 2009.
Nearly seven-in-10 accountholders (68%) contributed more than they spent during each month in 2009. The average account contribution in 2009 was $1,816.
In addition, the analysis found most transactions (70%) are sign for purchase transactions done via a card.
The average amount distributed for benefits from HAS accounts in 2009 was $1,305, or $109 per month. According to J.P. Morgan, while purchases at drugstores resulted in the highest volume of transactions per account, hospitals and dental expenses had the highest average dollar amount per transaction ($212 and $194, respectively).
Most HSA investment dollars were held in equity mutual funds (52%).
The Snapshot report is based on 2009 activity of more than 500,000 HSA account holders. The full report can be downloaded here.