As national healthcare reforms take effect and costs continue to climb, consumers are getting wiser about medical savings, according to J.P. Morgan’s (NYSE:JPM) fourth annual health savings account (HSA) program snapshot released today. Higher deductibles, rising healthcare costs and continued tax benefits have spurred HSA growth. J.P. Morgan currently manages more than one million accounts - the largest pool in eight years.
J.P. Morgan expects that the clarity around healthcare reform will continue to drive demand for HSAs across all segments of the market, which should continue into 2014. Employers will take a much more active role in educating employees on the long-term value of these accounts.
The 2012 HSA program snapshot report provides a transparent view of HSA usage patterns and trends among JPMorgan Chase HSA account holders. The report also provides first-hand insight into how HSAs have become an integral part of helping consumers save and pay for medical expenses.
2012 highlights include:
- The average accountholder is saving approximately $500 in taxes annually (assuming a 28 percent federal income tax rate). Average balances are also increasing by approximately $500 per account per year an account is open
- The average balance in 2012 for new HSA accounts rose to its highest level in eight years growing two percent from 2011 to $1,009
- The average HSA balance in 2012 was $1,736 – up six percent from 2011
- The average account contribution in 2012 was $1,800 while the average distribution was $1,417, resulting in 71 percent of accountholders contributing more than they spent last year
- On average per month in 2012, 66 percent of accounts made contributions and 43 percent of accounts made a distribution
- Total investment program balances grew 31 percent in 2012, up more than 177 percent since 2009