Assets in health savings accounts, which totaled an estimated $53.8 billion at the end of December, should rise to $75 billion by the end of 2020, according to a study by Devenir, an HSA research and investment consulting company.
The investment portion of those assets is expected to rise to $16.7 billion from $10.2 billion, while the deposit portion should grow to $58.3 billion from $43.5 billion, the study found.
The number of HSA accounts surpassed 25 million, a year-over-year increase of 13%.
On average, HSA investment account holders hold a total balance (deposits and investments) of $14,617.
"We continue to see seasonality in the percentage of accounts that are unfunded," the report said. "Accounts are often opened during the fall open enrollment season, but remain unfunded until early the following year. At the end of 2018, about 16% of all accounts were unfunded, down from almost 20% a year ago. The reduction in the percentage of unfunded accounts can be largely attributed to the continued uptick in account closures."
HSA account holders contributed almost $33.7 billion to their accounts in 2018, up 22% from the year before. For accounts receiving an employer contribution in 2018, the average contribution amount rose to $839, up from $604 in 2017.