Health savings accounts are migrating from a political movement into the mainstream. Market share projections put HSAs at over 20% of all privately-insured covered lives by the year 2010. Missing is a realistic vision of how HSAs fit in with all of the other health insurance products, including HRAs and FSAs. This session presents a realistic view of HSA market potential based on (a) the latest market data on average bank deposits and long-term outlook, (b) growth in HSA bank accounts versus HSA insurance policies, and (c) the market entry rate of banks and custodians. Its conclusions:
HSAs could peak out at the same market share as flexible spending accounts or perhaps 20% of private insurance
High-deductible health plans could prove to be more popular alone than in combination with an HSA
HSA market share currently depends almost entirely on the acceptance by consumers of an online bank to hold their HSA
