Investment assets in health savings accounts have surpassed the $10 billion mark, according to a new report from Devenir Group.
At the end of 2018, HSAs held an estimated $10.2 billion in investment assets, up 23% from the previous year. The assets are expected to grow to $16.7 billion by 2020, according to Devenir's report.
However, the average investment account balance fell. At the end of 2018, the average investment account holder had a balance of $10,948, down 7.5% from 2017.
Overall, HSA assets climbed 19% to $53.8 billion from the year before. The number of HSA accounts also increased, hitting 25 million, a 13% year-over-year increase.
Investment assets gained a greater share of total assets in HSA accounts. At the end of 2018, investment assets represented 19% of the total in HSAs, a percentage that has been growing steadily since 2011, when they accounted for just 8%.
HSA employee contributions also jumped. HSA account holders contributed almost $33.7 billion to their accounts in 2018, up 22% from the year before. Meanwhile, employers contributing to their workers' HSAs made an average contribution of $839, up from $604 in 2017.
The report is based on a Devenir survey of the top 100 HSA providers in January.