Top 20 HSA Market Concentration – 2024 Midyear Update

By Devenir

The HSA market continued to evolve through the first half of 2024. Using data from our latest 2024 Midyear HSA Research Report, we analyzed market concentration among the top 20 HSA providers (by assets). The Herfindahl-Hirschman Index (HHI) showed a 10% increase from the previous year, reflecting ongoing changes in market structure.

This change in market concentration stems from multiple factors. Organic growth and M&A activity remained important drivers of market share changes, while strong stock market performance also influenced asset-based measurements. Market share among the top 5 largest HSA providers increased to 73% of total HSA assets, up from 70% at the 2023 midyear point.

Devenir will continue to monitor the competitive landscape of the HSA market and look forward to providing additional updates in the future. If you have any comments or questions, feel free to contact our research team at research@devenir.com.

HHI Index (Max 10,000)0-1,000 – Competitive1,000-1,500 – Minor concentration1,500-2,000 – Concentrated2,000+ – Heavily concentrated

Methodology: Market concentration is measured using the Herfindahl-Hirschman Index (HHI) and the market shares (as measured by total assets) of the top 20 largest HSA providers. The HHI is calculated by squaring the market share of each firm competing in the market and then summing the results. For example, for a market consisting of 4 firms with shares of 30, 30, 20, and 20 percent, the HHI is 2,600 (302 + 302 + 202 + 202 = 2,600). A higher HHI generally indicates a higher level of concentration and a less competitive market.