Infographic: HSAs – A Growth Opportunity for TPAs

The following infographic highlights HSA growth opportunity for third party administrators. Since 2011, Health Savings Account (HSA) adoption has grown almost 425 percent.

Health Savings Accounts (HSAs) – A Growth Opportunity for TPAs

Since 2004, HSAs have skyrocketed in popularity. As HSA-qualified high deductible health plans continue to grow, third party administrators have plenty of opportunity to jump into the market.

HSA Growth Opportunity
HSA Growth

HDHP Enrollment

In 2022:

  • 51% of large firms (200 or more workers) offered an HSA-qualified HDHP
  • 24% of small firms (199 or fewer workers) offered one
  • Only 24% of covered workers were enrolled in an HSA-qualified HDHP in 2020

There is plenty of opportunity for HDHP and HSA growth.

HSA Growth from 2011-2022

  • 2011: 6.8 million accounts
  • 2012: 8.2 million accounts
  • 2013: 10.7 million accounts
  • 2014: 13.8 million accounts
  • 2015: 16.7 million accounts
  • 2016: 20.0 million accounts
  • 2017: 22.2 million accounts
  • 2018: 25.1 million accounts
  • 2019: 28.3 million accounts
  • 2020: 30.2 million accounts
  • 2021: 32.5 million accounts
  • 2022: 35.5 million accounts
  • 2025: 43 million accounts (projected)

Reasons Why TPAs Should Enter the Market

  1. Financial safety net: HSA administration can provide TPAs with an added layer of financial security
  2. Higher client satisfaction: Banks may offer HSA services for free, but what does the account owner get with the free service? In most cases, they get an HSA-coded account and not much else
  3. Easy administration: HSAs can be much easier to administer than FSAs, HRAs, or other tax-advantaged plans. With that in mind, you can offer your expertise and a higher level of service without changing much, if anything, about how you do business

How TPAs Are Poised to Take Advantage of HSA Growth

  • Knowledge: 85% of employees don’t understand their benefits. As a benefits expert, TPAs have a prime opportunity to educate employees, grow their value to employers, strengthen their reputation with brokers, and increase account adoption
  • A Better User Experience: A TPA can provide a top-notch user experience to their employer clients and participants with online enrollment, online contributions, electronic claim storage, mobile app, and options to self-certify (or administer yourself).
  • Investing options: Many banks that offer HSAs do not offer an investment option. An HSA solution should feature investing services, including educational materials, pre-selected portfolios, and more.
  • Inherent Business Acumen: Think about how you currently charge your employer groups for FSA, HRAs, and other accounts. You can use the same pricing model for HSAs. A per employee per month (PEPM) pricing model is common.

Read our whitepaper “Fear Not: There’s Still Time for TPAs to Enter the Thriving HSA Market.”

For 40 years, DataPath has been a pivotal force in the employee benefits, financial services, and insurance industries. The company’s flagship DataPath Summit platform offers an integrated solution for managing CDH, HSA, Well-Being, COBRA, and Billing. Through its partnership with Accelergent Growth Solutions, DataPath also offers expert BPO services, automation, outsourced customer service, and award-winning marketing services.

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