We’ve all seen the numbers: Health savings accounts (HSAs) just keep growing.
The still relatively new health savings vehicle has now grown to an estimated $18.1 billion in assets representing more than 9.1 million accounts. That’s a 29 percent increase in both accounts and assets in just one year, according to research from investment consulting firm Devenir.
There’s no question that HSAs are growing – but why? Experts point to a number of possible explanations.
Despite reports health care spending is slowing down, health costs remain incredibly high. A new report from the Kaiser Family Foundation confirms long-held suspicions that the cost of employer-sponsored health coverage continues to rise at a faster rate than wage increases and inflation.
Annual premiums for employer-sponsored family coverage climbed nearly 4 percent this year to top $16,000 for the first time, Kaiser found. The cost of single coverage rose almost 5 percent. Worker wages, meanwhile, climbed nearly 2 percent on average.
Health savings accounts are seen as a way for employers – and employees – to combat those high health costs. “[HSAs] are becoming more popular with employers because they have a much more sustainable expense profile and help lower employee benefit costs,” says Duncan Van Dusen, CEO of Tango Health in Austin, Texas.
Read the Full Article Here: Seven Reasons HSAs are Taking Off