The �A� in HSA

Health Savings Accounts include the ability to sock money away to pay for potential claims. And they enjoy a special tax advantage, to boot. I�ve been selling HSA�s (and they�re forerunner, MSA�s) since about 1992, and I�ve always been impressed at how consistent my clients have been in putting dollars in their accounts. I�ve also found it interesting that these accounts do grow every year, because � for the most part � my clients choose to leave the funds untouched.

So it was heartening to learn that they�re not alone:

�HSA Bank...announced its third-quarter account statistics, which indicate that most HSA Bank accountholders are saving at least a portion of their health savings account (HSA) funds.�

We know from previous posts that well over a million HSA�s have been purchased, and HSA Bank says that they've sold over 60,000 plans in 2005 alone. In fact, 9 out of 10 of their customers choose to contribute at least some money in their accounts. That�s over 55,000 folks last year alone, just at HSA Bank.

Another interesting factoid is that the average balance in these accounts is almost $1,600. If one assumes that most individuals choose the $2,000 deductible, that means a lot of folks who�ve got quite a nice cushion against a catastrophic claim. Of course, families would have a higher deductible still, but that $1,600 is a nice safety net even there.

It would be interesting to know the average income level (and net worth) of those folks who�ve set up accounts with HSA Bank. The article doesn�t disclose this information, but I wonder whether or not it would support my contention that it isn�t the very wealthy who are buying these plans.

I�ll post an update if/when this information becomes available.