According to a recent study by Devenir, the HSA industry is set to exceed $30 billion within the next year, but few consumers are taking the opportunity to utilize the tax advantaged HSA for long-term investment—only $4.4 billion of the $29.9 billion in 2015 set to be invested by HSA users. This is where even the smallest financial institution can grab a piece of the action—helping consumers to recognize the value of HSA investment. HSA adoption is at an all-time high, and financial institutions have the opportunity to help consumers invest their contributions for long-term use. How to Capitalize on the HSA Investment Market The market is there—do you know how to capitalize? To answer this, we have a few questions for you to answer: Do you know how to bridge the gap between the millions of people with HDHP coverage, but without HSAs? 42% of individuals have an HSA-eligible HDHP but did not open an HSA. Do your customers know WHY a health savings account is so important, both in the short and long term? There is a triple-tax advantage of an HSA, and the advantages mature in retirement when—after age 65—users can utilize funds even for non-medical expenses without penalty. Do your current HSA users know the basics of HSAs? There are 7 types of HSA user, but many underutilize the accounts—either making no contributions, letting money pass through like an FSA, or doing nothing with their account. Do you know how to tailor your communications to reach these seven types of HSA user? If each user has different traits, there are different ways to talk to each. Do you have the educational resources to communicate with HSA users? How can you become the trusted source of advice and information regarding HSA use and investment?

1. FINANCIAL INSTITUTIONS:

Y O U R G U I D E T O H S A O P P O R T U N I T I E S
FINANCIAL INSTITUTIONS OFFERING HSAS HAVE A MOMENTOUS OPPORTUNITY TO INCREASE BUSINESS:
New customers New business from
existing customers
59% - Being able to pay
monthly bills4
13% - Being able to save
for retirement4
12% - Being able to pay
heathcare costs4
HSAS INVESTMENTS
$12,995
HSA investment account
holders have an average
total balance of
$8.3 Bil.
By the end of 2017 the HSA
market will have estimated
investment assets nearing
12.5%
Over the last 3 years HSA
investors enjoyed an avg.
annualized return of
$3.2 Bil.
In December 2014
HSA investment
assets reached
FINANCIAL INSTITUTIONS' OPPORTUNITIES TO INFLUENCE ASSET GROWTH:
HSA CUSTOMERS WOULD BENEFIT FROM PROFESSIONAL GUIDANCE FROM THEIR HSA CUSTODIAN
65% don’t understand
how an HSA works5
Investors who contribute
to both HSAs and 401ks
have much higher balances4
Only 15% of HSAs
received the maximum
contribution in 20133
42% of individuals with an
HSA-eligible plan did not
open an HSA3
THE GROWING HSA MARKETPLACE:
Nearly 17.4 million Americans had a high-deductible
health plan with an HSA in 2014, and that number has
been growing at a rate of about 15% annually since 2011.2
17.4 Million2014
2013
2012
2011
HSAS AS A RETIREMENT SAVINGS VEHICLE:
Middle-class Americans’ most important day-to-day financial concerns:
59%
12%
13%
DUE +
A 65-year old couple who retired
in 2014 needs nearly $220,000 to
cover medical bills in retirement5
220K
50%
At current contribution limits and an annual return
of 4%, a couple could begin investing at age 45 and
save nearly 50% of their likely out-of-pocket retirement
medical expenses by the time they turn 65. Any
increases to annual contribution limits and additional
catch-up contributions can help them save more.6
?
www.HealthcareTrendsInstitute.org
SOURCES:
1
2014 Year-End Devenir HSA Market Research Report Executive Summary
2
American's Health Insurance Plans (AHIP)
3
EBRI/Greenwald & Associates 2013 Consumer Engagement In Health Care Survey
4
Wells Fargo: The 401(k) and the HSA: Partners in long-term savings opportunities
5
2013 Fidelity Investments HSA research study
6
BenefitsPro: Is the HSA the New 401(k)
7
InsuranceQuotes.com
© Copyright 2015. Healthcare Trends Institute.
By the end of 2017 the HSA market will
have estimated assets nearing $44 Bil.
1 1 1 1
58%
42%
15%
85%
V I E W C O M P R E H E N S I V E & D E TA I L E D
I N S I G H T S I N O U R C O M P L E T E G U I D E