Account-based consumer-driven health plans (CDHPs) continued to grow last year with assets totaling $23.8 billion in HSAs and HRAs in 2013, spread across 11.8 million accounts. This is according the new 2013 EBRI/Greenwald & Associates Consumer Engagement in Health Care Survey (CEHCS).
In the early 2000's employers began utilizing CDHPs - pairing high-deductible health plans with Health Reimbursement Arrangements (HRAs) and Health Savings Accounts (HSAs). CDHPs are a cost-savings strategy that gives employees more choice over their healthcare. Since the early 2000's, CDHPs have been on the rise. In 2013, 23% of employers with 10–499 workers and 39% of employers with 500+ workers offered either an HRA- or HSA-eligible health plan.
The EBRI/CEHCS Survey, released in January 2014, examines the growth of Integrated HRAs and HSAs from 2006-2013, providing data on the number of HRA and HSA accounts, total assets, and growth trends.
Key Findings on the Growth of HSAs and HRAs 2006-2013
Here are the key findings from the 2013 EBRI/Greenwald & Associates Consumer Engagement in Health Care Survey (CEHCS).
HSA and HRA Asset Levels Growing: In 2013, there was $23.8 billion in HSAs and HRAs, spread across 11.8 million accounts. The number of accounts was up slightly from 2012, when there were 11.7 million accounts. Total assets were up from $18 billion in 2012.
HSAs Growing, HRAs Contracting: For the first time since the survey was conducted in 2005, the number of HRAs fell. In 2013, there were 4.7 million HRA "accounts", down from 5.1 million in 2012. The number of individuals with HSAs increased from 6.6 million to 7.2 million between 2012 and 2013. Assets in HRAs fell slightly, totaling $5.8 billion in 2013. Assets in HSAs increased from $11.3 billion to $16.6 billion between 2012 and 2013.
Average HSA and HRA Balances Increased: The combined average HRA and HSA balances increased to $2,010 in 2013 from $1,534 in 2012. In 2013 the average was $2,311 among HSA participants and $1,236 among HRA participants.
Rollovers Decrease: Average rollover amounts decreased from $1,206 in 2012 to $1,165 in 2013. Total assets being rolled over also decreased: $9.2 billion was rolled over in 2013, down from $9.8 billion in 2012. The percentage of individuals without a rollover who had an account for more than a year was 10 percent in 2013.
To read the full survey and complete set of findings, see 2013 EBRI/Greenwald & Associates Consumer Engagement in Health Care Survey (CEHCS).