Employee Benefit News

March 9, 2006

HSA deposits near $1 billion

Americans have stashed a sizable amount of cash in health savings
accounts, according to a recent study of 60 financial and health
institutions by the newsletter Inside Consumer-Directed Care. Users
have deposited almost $1 billion in HSAs since they were
established three years ago, the study finds.

More than 820,000 accounts have been opened across the nation
and about 60 new accounts are being added each month. The
average amount in each account is $1,181, the study shows.

Observers expect heated competition for HSA deposits among
banks, credit unions and other financial organizations as the
balances continue to grow. The number of HSA administrators or
custodians could grow from 300 to 400 by the end of this year, the
study indicates. In fact, the BlueCross BlueShield Association plans
to launch its own Blue Healthcare Bank early next year.