Is Obamacare Boosting Health Savings Accounts?
The Affordable Care Act was touted as a way to lower healthcare costs across the country, but higher premiums and deductibles are helping more individuals and employers realize the benefits of health savings accounts.
Fidelity Investments opened 48 percent more HSAs in 2013 from the prior year, according to a recently released statement from the company. Fidelity now administers HSAs for 269,000 account holders at more than 100 firms, with assets surging 39 percent to $653 million compared to only $471 million in the previous year. Interestingly, HSAs were created a decade ago by the Treasury Department, but have only recently gained traction.
“Fidelity continues to drive adoption of its health savings account business as companies and their employees realize their potential advantages both today and over the long haul,” said Will Applegate, vice president, Fidelity Investments. “We believe one of the best ways for people to prepare for the escalating costs of healthcare in retirement is, if eligible, open a health savings account, as young as possible, to make the most of possible long-term investment gains and tax-advantaged growth.”