Recession could help HSA sales, HealthEquity executive says

By Allison Bell | Originally posted on Benefits Pro

The health account administration also has high hopes for its new medical finance arrangement.

If the U.S. job market is weakening, that could help health savings account sales.

James Lucania, the chief financial officer at HealthEquity, a longtime HSA program services provider, made that prediction Tuesday, during a conference call with securities analysts.

The company ended the second quarter administering 9 million HSAs and $29 billion in HSA assets, or more than $2,000 per HSA.

An analyst asked company executives about the effects of softer employment.

"When the job market softens, we don't like it," Lucania said. "But, when it softens, we do have employers say, 'Look, we need to take a look at our costs.'"

For an employer trying to cut costs but maintain good benefits, one way is to combine a consumer-directed health plan, or high-deductible health plan, with a health savings account, Lucania said.

"So, there's a lot of enthusiasm," Lucania said.

HealthEquity sales reps are as excited now as they've ever been, Lucania added.