J.P. Morgan Health Savings Account Snapshot Shows Consumer Contributions Reach Highest Levels in Eight Years
Healthcare Reform, Rising Costs Prompt Higher Contributions; J.P. Morgan Exceeds One Million Health Savings Accounts Under Management
NEW YORK--(BUSINESS WIRE)-- As national healthcare reforms take effect and costs continue to climb, consumers are getting wiser about medical savings, according to J.P. Morgan's (NYS: JPM) fourth annual health savings account (HSA) program snapshot released today. Higher deductibles, rising healthcare costs and continued tax benefits have spurred HSA growth. J.P. Morgan currently manages more than one million accounts - the largest pool in eight years.
J.P. Morgan expects that the clarity around healthcare reform will continue to drive demand for HSAs across all segments of the market, which should continue into 2014. Employers will take a much more active role in educating employees on the long-term value of these accounts.
The 2012 HSA program snapshot report provides a transparent view of HSA usage patterns and trends among JPMorgan Chase HSA account holders. The report also provides first-hand insight into how HSAs have become an integral part of helping consumers save and pay for medical expenses.
2012 highlights include:
The average accountholder is saving approximately $500 in taxes annually (assuming a 28 percent federal income tax rate). Average balances are also increasing by approximately $500 per account per year an account is open
The average balance in 2012 for new HSA accounts rose to its highest level in eight years growing two percent from 2011 to $1,009
The average HSA balance in 2012 was $1,736 - up six percent from 2011
The average account contribution in 2012 was $1,800 while the average distribution was $1,417, resulting in 71 percent of accountholders contributing more than they spent last year
On average per month in 2012, 66 percent of accounts made contributions and 43 percent of accounts made a distribution
Total investment program balances grew 31 percent in 2012, up more than 177 percent since 2009
J.P. Morgan administers HSA programs in conjunction with many of the largest health insurance companies in the United States as well as Fortune 500 companies, small businesses and individuals across the nation. For more information about J.P. Morgan's HSA Program, please visit www.jpmorgan.com/hsa.
A full copy of J.P. Morgan's HSA Program Snapshot is available at www.jpmorgan.com/visit/hsasnapshot. The data was captured between January 1 and December 31, 2012.
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J.P. Morgan's Corporate & Investment Bank is a global leader across banking, markets and investor services. The world's most important corporations, governments and institutions entrust us with their business in more than 100 countries. With $18.8 trillion of assets under custody and $366 billion in deposits, the Corporate & Investment Bank provides strategic advice, raises capital, manages risk and extends liquidity in markets around the world. Further information about J.P. Morgan is available at www.jpmorgan.com.
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