Health savings accounts saw robust asset growth in 2020, with $82.2 billion in assets held in 30.2 million accounts, according to a year-end HSA market survey conducted by consulting firm Devenir. Assets were up 25% from a year ago, while the number of HSAs grew by 6%.
For about half of all HSAs, more funds were contributed in 2020 than were withdrawn. Of the contributions, 59% were made by employees and 26% were made by employers. The average employer contribution—among those making contributions to HSAs—was $870.
HSA providers projected that the industry will see asset growth of 16% in 2021, according to the survey, and Devenir noted that it expects the HSA market to exceed 36 million accounts by the end of 2023, with more than $127 billion in assets.