Morningstar's first study of 10 largest HSAs reveals so-so performance

Only one plan was assessed positively as both an investment and a savings vehicle

Jun 27, 2017 @ 5:14 pm

By InvestmentNews

In its first assessment of major health savings account plan providers, Morningstar found that only plans from The HSA Authority earned a positive assessment as both an investment vehicle to save for future medical expenses and as a spending vehicle to cover current medical costs.

Morningstar looked at plans from the nation's 10 largest plan providers: Alliant Credit Union, Bank of America, BenefitWallet, HealthEquity, HealthSavings Administrators, HSA Bank, Optum Bank, SelectAccount, The HSA Authority, and UMB Bank.

"The results of the study show there's room for improvement across the board," Morningstar said in a release.

Of the 10 plans studied, the research firm positively assessed only four as an investment vehicle and three for use as a spending vehicle. Morningstar assigned each plan an overall assessment of positive, neutral and negative. For account holders looking to invest their HSA assets, the study analyzed the quality and cost of mutual funds offered as part of the plan's "investment menu."

The evaluation of HSAs as a spending vehicle focused primarily on the maintenance fees charged by each plan.

"Participants using HSAs to invest and save for future medical expenses should seek plans that offer a well-designed investment menu of cheap, high-quality funds. HSA plans from four providers — Bank of America, Health Equity, Optum, and The HSA Authority — came closest to attaining that high standard," Morningstar said.

0
Comments

What do you think?

View comments

Recommended for you

Sponsored financial news

Featured video

INTV

Children of AI, and when they are coming to financial advice

Technology reporter Ryan Neal talks about the tremendous progress in artificial intelligence in other industries, and how its applications are slowly making headway in the advice sector.

Latest news & opinion

SEC advice rule hearing updates

Commission says a lot of work ahead, public will have 90 days to comment.

SEC advice proposal unveiling: Here's what to expect

Chairman Jay Clayton will initiate momentous action Wednesday, as the commission meets to debate a rule on broker and adviser standards.

How active are the largest actively managed funds?

Active-share measures for the 15 largest actively traded mutual funds.

Morgan Stanley's success looks long in the tooth to analyst

Sanford C. Bernstein & Co. analyst Christian Bolu, concerned over stalled adviser growth and what it means for lending and deposit growth, believes the stock will "under perform."

Retirement coverage gap, 401(k) rollovers are big emerging threats for plan advisers

Proliferation of state retirement programs approaching the 'tipping point' where it will lead the federal government to step in.

X

Hi! Glad you're here and we hope you like all the great work we do here at InvestmentNews. But what we do is expensive and is funded in part by our sponsors. So won't you show our sponsors a little love by whitelisting investmentnews.com? It'll help us continue to serve you.

Yes, show me how to whitelist investmentnews.com

Ad blocker detected. Please whitelist us or give premium a try.

X

Subscribe and Save 60%

Premium Access
Print + Digital

Learn more
Subscribe to Print