PROVIDENCE – Fidelity Investments Inc. reported a 34% annual increase in its health savings account business, which hit $13.7 billion in total assets at the end of 2021.
The growth in assets reflects increasing focus on health care benefits, with 2.2 million accounts by the end of 2021, according to a news release.
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That includes individual customers and employers, the latter of which are turning more and more to HSA benefits as a way to lure and retain workers.
Fidelity saw its plan sponsors with HSA benefits increase 23% year over year to 1,400 companies as of the end of 2021, keeping Fidelity with the third-largest share of the HSA market.
Workers for their part are taking full advantage of these offerings, investing at higher rates and with more assets, with average HSA account balances up $6,200 over the prior year.
Fidelity also saw growth in its retail HSA business for customers who don’t get the benefit through their work, with retail business reaching $3.1 billion in assets, up 78% over the prior year.
As its HSA line expands and draws increasing interest from customers and businesses, Fidelity has added new services, including features on its free Fidelity Health mobile app. The app lets users monitor balances and transactions on their HSA and scan products to find out if they qualify as medical expenses, among other features.
Nancy Lavin is a PBN staff writer. You may reach her at Lavin@PBN.com.
