Despite Industry Stakeholder Concerns, Second Quarter HSA Growth Significant

Contact: Donald Mazzella dmazzella@is-incorp.com
201-242-0600

Ridgefield, NJ—August 8, 2007—Second quarter account growth (16%) for Health Savings Accounts (HSA) was lower than in the first quarter (22%) but still on target to reach 8 million by the end of the year, according to Information Strategies, Inc. (ISI).

During the same period, deposits grew at a 26% rate versus the first quarter increase of 22%, to $7.8 billion, according to the parent of www.HSAfinder.com.
The company has been tracking HSA insurance coverage and custodial accounts since their inception, utilizes reports from custodial institutions across the country, and is the most detailed in the industry.

JoAnn Laing, ISI’s President & CEO said the “nationwide, custodial accounts have now passed the 5 million mark and are tracking to reach the 8 million total when the final numbers for 2007 are tallied.”

“Our continuous polling of individuals, companies, insurance providers and financial institutions indicates the third and fourth quarters will be especially robust,” she continued.

Despite the continued growth in covered lives, accounts and deposits, the HSA industry stakeholders are somewhat uncertain.  Congressional actions and the change in administration are throwing a shadow over future growth prospects but HSA users themselves are still happy.

In its latest round of interviews, ISI found that 83% of 5,000+ HSA users said they would recommend HSAs to friends and families. By comparison, less than 2/3rd of traditional healthcare insurance program would recommend their current policy to family or friends.

Polling of business leaders from its database of 4+ million companies also indicated that the number of companies offering HSAs to their employees, either as an option or as full replacement program will soar past the 40% mark as of January 1, 2008.
Interestingly, in a poll of companies with HSAs in place since 2005 or 2006, not a single company was abandoning the option should current management have a say in the benefits process.  Many reported they were considering going from offering HSAs as an option to full replacement program in either 2008 or 2009.

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