February 4, 2009

Latest Health Savings Account Research

Dean Halverson

As 2009 gets underway and we start to see the rise in Healthcare 2.0, we will also see continued growth of Health Savings Accounts (HSA’s). They became the fastest growing type of account in 2008, as costs rose and consumers saved for healthcare costs during retirement. And this research shows that it will continue in 2009.

The latest research from Forrester shows us four key points:

1) Volume is steadily increasing
Forrester estimates that HSA assets now exceed $8 billion nationwide, as they make up 7% of non-elderly commercially insured consumer accounts. This shows consistent growth already from 2008 to 2009.

2) Existing owners value their accounts
For those that already own a health savings account, two-thirds of owners agree or strongly agree it is a good option for saving for retirement. But, only 43% agree or strongly agree that an HSA will play an important role during retirement. However, customer satisfaction and loyalty appears strong, as 58% would recommend an HSA to friends or family.

Forrester found that 55% of customers use debit cards most, 30% use web-based bill pay features, and 22% pay via check. The top concerns when selecting an institution are fees, interest rates, and debit card options.

3) Education is important for marketers
Even though accounts are growing and new customers value the savings potential, Forrester found that 1 in 5 owners do not fully understand how to use it. This means that marketers need to educate both existing and potential account holders.

4) And, customers still need some degree of liquidity
An interesting trend is now clear as well. Instead of simply just saving money for retirement, rising healthcare costs and recent economic challenges are forcing users to regularly withdraw from their account to pay for healthcare now. This means that customers require some level of liquidity, and that most do not simply put money in and let it sit.

RT @wavedriven breaking down latest HSA research findings wavedriven.com/blog

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