At a Glance | May 27, 2021 HSA Utilization: What Moves the Dial? INFLOW / OUTFLOW Contributions and Distributions Increase Each Year an HSA Is Owned Regardless of the year the Contributions by Age of Account Distributions by Age of Account account was opened, individual $5k contributions increased with the age of the account. The higher $3.7k $3.5k distributions associated with $2.8k older accounts may suggest that $2.7k $2.2k individuals have been actively $1.8k $1.6k building up their account balances over time, and, as major health expenses have been incurred, account owners then take larger distributions. 1 yr 5 yrs 10 yrs 15+ 1 yr 5 yrs 10 yrs 15+ Age of HSA Age of HSA HSA INVESTING Investing of HSA Balances Increased With Age of Account The use of investments other Percentage of Accounts With Invested Percentage of Total Assets Invested, than cash within HSAs remains Assets Other Than Cash Among Accounts With Invested Assets low despite the tax-saving 85% possibilities, though usage 79% 72% 68% appears to change the longer an HSA owner holds the account. Also, generally, the longer an account has been 20% 13% 11% open, the larger the percentage 5% of the account balance that is in 1 yr 5 yrs 10 yrs 15+ 1 yr 5 yrs 10 yrs 15+ non-cash investments. Age of HSA Age of HSA EMPLOYER CONTRIBUTION EFFECT Employer Contributions Can Play a Role in Engaging HSA Users Accounts with an employer Average Contributions, 2019 Accounts With Invested Assets, 2019 contribution had lower average $2.8k individual contributions. Employer $2.5k Employer contributions may $0.9k Employee 7% 9% nudge employees to allocate Contribution Invested if No Invested When Employee their discretionary dollars Employer Employer $1.9k Contribution Contributes elsewhere. Accounts that received employer contributions 7 7 +93 93 J + 9 9 91 J+91 + more frequently contained No Employer When Employer Contribution Contributes assets other than cash. SOURCE: Paul Fronstin and Jake Spiegel, “Trends in Health Savings Account Balances, Contributions, Distributions, and Investments, 2011–2019: Estimates From the EBRI HSA Database,” EBRI Issue Brief, no. 518 (November 12, 2020). © 2021 EBRI This report is copyrighted by the Employee Benefit Research Institute (EBRI). You may copy, print, or download this report solely for personal and noncommercial use, provided that all hard copies retain any and all copyright and other applicable notices contained therein, and you may cite or quote small portions of the report provided that you do so verbatim and with proper citation. Any use beyond the scope of the foregoing requires EBRI’s prior express permission. For permissions, please contact EBRI at permissions@ebri.org.