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August 07, 2005
Growth seen in Health Savings Accounts
New research from TowerGroup projects that the total number of health savings accounts (HSAs) and flexible spending accounts (FSAs) will rise to nearly 29.1 million by 2010, up from just 17.3 million in 2005. They also predict that HSA assets under management will grow to between $10 billion and $26 billion by 2010.
My prediction is that these numbers are way too low. Health Savings Accounts have only been available a year and a half, and many people are not even aware of them. Yet the growth in number of HSAs being opened is accelerating every month. Many insurance companies are reporting that up to 50% of their sales this year have been HSA-qualified policies. This has also been our experience.
If HSA plans also result in lower rate increases (which is a good possibility, since HSA holders have a financial incentive to stay health), we’ll see even more people flocking to these plans.
Posted by Wiley Long at August 7, 2005 12:52 PM