HSAs Become Billion-Dollar Niche For JPMorgan

Monday, May 02, 2011 06:41
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HSAs Become Billion-Dollar Niche For JPMorgan

Tags: healthcare

Health savings accounts or HSAs were sidelined by the long healthcare reform debate, but now are becoming a big business for companies that know how to manage them. 

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HSAs are different from flexible spending accounts in that contributions follow someone for life and can be invested somewhat more creatively.

 

This theoretically makes these accounts a new asset-based business similar to what's already happened in retirement (IRAs) and education (529s) -- only focused on paying down healthcare expenses.

 

JPMorgan is getting so excited about the opportunity that it just put out an extensive report on how HSAs have become a $1 billion business for the firm.

 

While these tend to be small accounts, they can build up into appreciable AUM, especially for advisors who court them in bulk.

 

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