Fidelity Investments announced that it saw the largest annual increase in health savings accounts.
In 2011, Fidelity’s HSA customer base jumped 61 percent to 119,000 from 74,000 at the end of 2010. In addition, the company signed 16 new employers offering HSAs to their employees, ending the year with 57, up from 41 at year end 2010. As of February 29, 2012, Fidelity administered HSA assets of $327 million, up 43 percent from $229 million one year prior.
“We’re seeing significant growth in our HSA business as employers turn to high deductible health plans to control escalating costs, and employees turn to the accounts for their long-term savings potential for future health care expenses,” said William Applegate, vice president, Fidelity Investment, in a statement.
[See also: HSA growth may hit some hurdles]
The average annual participant contribution to a Fidelity HSA, which includes money from both employer and employee, rose to $2,677, up from $2,620 in 2010. Most employers offering Fidelity HSAs (86 percent) offered some level of employer contribution in 2011, up from 83 percent in 2010. The annual contribution limit to an HSA set by the IRS rose slightly this year to $3,100 for individuals, up from $3,050 in 2011, and $6,250 for families, up from $6,150.
More HSA articles from BenefitsPro:
- 2012 HSA and FSA cheat sheet
- Five reasons to enroll in an HSA
- IRS announces new HSA limits for 2012
- Helping employees understand HSAs
- Expert projects 2013 HSA figures