Reading Time: 2 minutes

More Americans are putting their HSA dollars to work through investments, a move experts say could make it easier to cover the medical bills that come with getting older.

Around 4 million HSAs — roughly 10% of all accounts — held at least some of their HSA dollars in investments at the middle of last year, according to the Devenir 2025 Midyear HSA Survey. That represents a 23% year-over-year increase. 

HSA assets also saw significant growth, reaching $159 billion across 40 million accounts, making a 16% year-over-year increase. Investment assets now represent 46% of all HSA assets. 

“HSAs saw strong growth in the first half of 2025, driven by steady contributions and market gains,” Jon Robb, senior vice president of research and technology at Devenir, said in a press release. “More account holders are choosing to invest, while many households still use HSAs for current medical costs. That dual role, both spending account and long-term savings vehicle, continues to drive the popularity and growth of HSAs.”

When HSAs were created by the Medicare Prescription Drug, Improvement, and Modernization Act of 2003, they were designed as long-term savings vehicles. But because of a lack of awareness and poor messaging, many account holders still don’t invest their funds, says Nick DiMauro, consumer benefits expert and CEO of daylii.

Investing HSA funds helps people maximize the triple tax advantage, DiMauro says, pointing out that contributions are tax-deductible, the money grows tax-free and withdrawals for qualified medical expenses are also tax-free.

DiMauro says one of the biggest mistakes he sees “is consumers utilizing their card instead of paying out of pocket, saving those receipts and letting their money grow that compound interest.”

Improving the Messaging

Many HR leaders only talk about the benefits of HSAs during onboarding and open enrollment, but DiMauro says this conversation should continue throughout the year in order to increase engagement. 

HSAs are governed by the IRS, so the rules and regulations surrounding the accounts generally remain the same year-to-year. But HR leaders can help employees make the most of their accounts by helping them strategize how they are spending and investing their funds, DiMauro says.

“There’s a lot of complexity around HSAs, and it’s really important to take a uniformed approach for your employee group,” DiMauro says. “It all comes down to education and making sure your HR directors understand these as well, because a lot of times they don’t even understand it, so how are they going to communicate it to their employees? That’s where it gets lost.”

Original article, click here.