More Americans are using HSAs to save and pay for medical expenses, according to a new report from the J.P. Morgan Treasury Services. The report shows the average HSA balance is up 7 percent from 2009, at $1,494, and the average account contribution rose slightly in 2010 to $1,884, compared to $1,816 in 2009. The report includes the J.P.
Morgan HSA Program Snapshot which details the saving, spending and investing patterns and trends among 700,000 HSA account holders in 2010. The average age of account holders is 43, and 73 percent of account holders contributed more than they spent during each month in 2010 (up from 68 percent in 2009), the report showed.
“As health care costs continue to rise year over year, Americans are increasingly leveraging HSAs as a means for using pre-tax dollars on medical expenses, as well as a way to invest and earn money for future health costs,” says David Josephs, managing director at J.P. Morgan.