Built-up demand for health savings accounts helped to account for a solid 2010 for J.P. Morgan’s HSA business, according to David Josephs, managing director with the company.“I think there was a lot of standing on the sidelines in 2009 and 2010, waiting to see what happened with healthcare reform,” he says. “When that was cleared up, I think there was some pent-up demand for high-deductible health plans and HSAs, and all of that has that gotten released.”
As of April, JPMorgan manages more than 700,000 HSAs with more than $1.1 billion in assets. In 2010, the company’s average HSA balance rose 7% from 2009, to $1,494. The average account contribution was $1,884, up from $1,816. What’s more, 73% of accountholders contributed more than they spent during each month in 2010, compared with 68% in 2009.