With the rise of the high deductible health plan, the health savings account has seen a meteoric rise as an option not only for employees to better manage their healthcare dollars, but to invest these dollars for future use. Banks that offer or administer HSAs have an opportunity to grab a piece of this market, enhancing relationships with employer customers and account holders. With nearly 19.7 Million Americans participating in a high-deductible health plan, and an estimated 30 Million participants by 2018, HSA assets will grow with it. According to the Devenir Research Midyear HSA Report, Health Savings Account assets totaled $30.2 billion stored in 18.2 million accounts for the period ending June 30, 2016, and are expected to reach $36.4 billion in the next year. These numbers will grow even further, as Devenir currently projects that by the end of 2018 the HSA market will exceed $50 billion in HSA assets held among over 27 million accounts. Knowing that within the next two years, there will be roughly 9 million more accounts and $20 billion in new assets, the employers looking to offer plans including HSAs and employees looking to put money into them will be looking for a partner in order to help secure and manage the money put into these accounts. This creates a relatively untapped opportunity for banks to expand their product offerings to meet future demand. Did you know that HSA providers collectively generate $750-850 million in revenue from HSAs per year—and the number is only going to increase? The increases will not only come as a result of a higher number of accounts being opened, but also due to a currently underutilized strategy for account holders: HSA Investment. As many account holders are still learning about the true benefits of tax-advantaged HSA investment, helping these account holders to learn about the benefits of HSA investment can open your organization up to more trust and more opportunity to help account holders to invest wisely. Money goes into the account tax-free, earnings accrue tax free, and money can be taken out for qualified expenses tax free. Banks that take advantage of the HSA opportunities can recognize the following advantages: Expanding Business by attracting new account holders, developing and expanding relationships with employer customers, and taking in new deposits. Growing Revenue from interest generated, increasing interchange, and non-interest income. Leveraging the Momentum of the Growing HSA Market by capitalizing on new accounts being opened at a rapid pace and increasing deposits per account by educating account holders of the value of HSAs. Offering one of the most needed services by helping account holders recognize the importance of HSAs not just as an vehicle for medical costs, but a solution for healthcare in retirement. Capitalizing on something that’s quickly becoming the de facto vehicle for healthcare savings.

1. A BANK’S STRATEGIC
GUIDE HSA OPPORTUNITIES
GROWREVENUE
Increase Interest
Income
HSAs more popular than ever for supplementing retirement savings
34% - of American workers have
no savings set aside for retirement2
4 in 10 people do not have
access to retirement plan at work3
Only 22% are very confident
that they will have enough money
for a comfortable retirement3
X10
59%
Individuals need to save
10x their salary to retire
comfortable at age 674
245K
A 65 year old couple who retired
in 2015 needs nearly $245,000 to
cover medical bills in retirement4
34% 22%
OFFERSOLUTIONSTOADDRESSYOUREMPLOYER&ACCOUNTHOLDERNEEDS
Administering HSAs as a new or enhanced revenue opportunity
Few people with an
HSA are aware of the
ability to fund their
healthcare in retirement3
Most tax-advantaged vehicle out there for saving:
contributions are pretaxed tax free, money grows
tax free, and if it is used for qualified medical
expenses, the withdrawal is also tax free.5
TAX
ESTABLISHTHOUGHTLEADERSHIP HSAs are quickly becoming the standard for healthcare savings
Attract
new account
holders
Expand relationships
with employer
customers through
offing an HSA
Grow deposit
base with
sticky HSA
deposits
EXPANDBUSINESS By Rethinking your Deposit Capturing Strategy
Expand your existing account
holder relationships with an
additional product
Retain account holders with
additional valued products;
preventing them from looking
at your competitors
Increase Non-Interest
Income
Increase Interchange
+22% HSAs are growing
at a 22% clip year
over year1
+25% HSA deposits are
growing at a 25%
clip year over year1
Over 17 million HSAs open at the end of 2015.
The number of HSA account holders is projected
to increase by 13 million new accounts by 20181 30 Million (Est.)2018
2015
LEVERAGEHSAMOMENTUM Untapped growth opportunity through HSA availability and education
$54B
$54 billion in HSA
deposits across
30 Million accounts
projected by 20181
17 Million
HSA providers
collectively generated
$750-$850M
in HSA revenue
per year1
Visit today to learn more about how Healthcare Trends Institute can help you
simplify the business of healthcare. www.healthcaretrendsinstitute.org
© Copyright 2016 Healthcare Trends Institute
Sources: 1.DevenirGroup
2.SocialSecurityAdministration
3.ThePEWCharitableTrusts
4.Fidelity
5.AvidiaHSAConsultingWhitePaper