X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.

SAN FRANCISCO — Health care banking technology solutions provider Canopy Financial found that the recession has had some impact on health savings account balances.According to the “Health Savings Account Market Report” for third quarter 2008, individual and family HSA accounts showed modest declines of 2% and 4%, respectively.While average employer contributions to individual HSAs increased quarter-over-quarter, average employee contributions dipped considerably through late summer and early fall. Similarly, family HSA balances were down slightly more than individual HSA balances, decreasing 4% quarter-over-quarter, due primarily to decreases in account values in September.The report found that the top three spend categories realized by individual HSA accountholders were dental services, prescription medicine and hospital stays, whereas the top three spend categories for family HSA account-holders were dental services, hospital stays and office visits.The health investment account balances sharply declined due to recent stock market performance, with individual HIAs declining on average 17% quarter-over-quarter. Family HIA balances fared better, declining on average only 8% quarter-over-quarter.“In spite of the recent financial crisis, one thing to note about HSAs, and specifically HIAs, is how contributions into these accounts resemble that of 401(k) plans,” said Canopy CEO Vik Kashyap. “Even in the midst of significant declines in the stock markets, inflows to individual and family HIAs were double and triple that of outflows respectively.”The report also found that older individuals and families (age 51 and over) continue to hold the highest average HIA account values, nearly triple the HIA account values held by younger individuals and families (age 25 to 40). In addition, card payments continued to lag behind every other spend category, with the majority of spending out of HSAs being derived from bill payments and reimbursements.–[email protected]

Complete your profile to continue reading and get FREE access to CUTimes.com, part of your ALM digital membership.

Your access to unlimited CUTimes.com content isn’t changing.
Once you are an ALM digital member, you’ll receive:

  • Critical CUTimes.com information including comprehensive product and service provider listings via the Marketplace Directory, CU Careers, resources from industry leaders, webcasts, and breaking news, analysis and more with our informative Newsletters.
  • Exclusive discounts on ALM and CU Times events.
  • Access to other award-winning ALM websites including Law.com and GlobeSt.com.

Already have an account?

Credit Union Times

Join Credit Union Times

Don’t miss crucial strategic and tactical information necessary to run your institution and better serve your members. Join Credit Union Times now!

  • Free unlimited access to Credit Union Times' trusted and independent team of experts for extensive industry news, conference coverage, people features, statistical analysis, and regulation and technology updates.
  • Exclusive discounts on ALM and Credit Union Times events.
  • Access to other award-winning ALM websites including TreasuryandRisk.com and Law.com.

Already have an account? Sign In Now
Join Credit Union Times

Copyright © 2020 ALM Media Properties, LLC. All Rights Reserved.