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JP Morgan HSA Use Surges

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Just like Bank of America, JP Morgan Chase says they have added a record number of health savings accounts they manage for workers. As of this month, JP Morgan administers more than 900,000 HSAs with over $1.5 billion in HSA deposits.

The average balance in 2011 for new HSA accounts rose to its highest level in seven years, the firm says. The average HSA balance in 2011 was $1,547—up 4 percent from 2010, and the average account contribution in 2011 was $1,912 versus $1,884 in 2010, an increase of 1.5 percent.

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That equates to an annual average tax savings of $500 for each accountholder, JP Morgan says. Additionally, they say, 74 percent of accountholders contributed more than they spent during each month.

“For the third consecutive year we have seen a significant increase in the adoption of HSAs and, more importantly, they continue to be used as an effective consumer tool for managing health care expenses,” sasy Elena Szymanski, Executive Director, J.P. Morgan Treasury Services. “Consumer-driven plans combined with HSAs remain a valuable option for employers and individuals who want to take advantage of paying for medical expenses tax-free.”