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Enrollment in health savings accounts is surging as more employers are moving to consumer-driven health care plans, according to Fidelity Investments.
Fidelity said Thursday that the number of HSAs it administered in 2011 jumped to 119,000, up 61% compared with 74,000 in 2010, its greatest annual increase.
HSAs “are the most cost-effective alternative for employers and employees,” said William Applegate, a Fidelity Investments vp in Boston.
A survey by Mercer L.L.C. found that the cost of medical coverage through a CDHP linked to an HSA averaged $7,787 per employee in 2011. That's about 20% less than the average of $9,385 per employee for medical coverage through a preferred provider organization.