Younger Americans are embracing health savings accounts, with about one in five people in their 30s having an account, according to a new HSA market survey released today by consulting firm Devenir and the American Bankers Association’s Health Savings Account Council. Meanwhile, HSA holders over age 50 held more than $44 billion in their accounts at the end of 2020, with an average balance of $4,321, the survey found.
HSAs are being used in every state and territory in the U.S., Devenir said, and there were 30 million health savings accounts by the end of 2020, helping to cover 63 million people. ABA HSA Council Executive Director Kevin McKechnie noted that the survey results “show that an increasing number of Americans prefer health insurance that allows them to pay for their current and future healthcare expenses tax-free. An HSA plan is the only health insurance product in America that can help you save for retirement while taking care of you while you work. More and more Americans are switching to health plans with their future in mind.”