09/26/2024 | Press release | Distributed by Public on 09/26/2024 07:06
Assessments of the leading providers highlight continued progress and identify areas for significant improvement
CHICAGO--(BUSINESS WIRE)-- Morningstar, Inc. (Nasdaq: MORN), a leading provider of independent investment insights, today published its eighth annual landscape study on health savings accounts (HSAs) available to individuals. The study assesses the current state of the HSA industry and releases Morningstar's assessment of 11 of the top HSA providers on two different use cases: 1) as investment accounts to save for future medical expenses and 2) as spending accounts to cover current medical costs.
Overall, the study found meaningful improvements in HSA features, such as lower fees and better investment options. However, Morningstar highlights substantial room for growth in the industry, with just four providers receiving an Above Average or better rating on both evaluated use cases.
"Efforts by providers to enhance HSA offerings have proven beneficial for investors," said Greg Carlson, senior manager research analyst. "Nonetheless, transparency issues, including hidden costs, continue to pose challenges for investors as they navigate their healthcare finances. Our study underscores the progress made while highlighting the hurdles that need to be addressed for HSAs to achieve their full potential."
Highlights from the study include:
The overall assessment of each HSA provider is listed below.
HSA Provider |
Overall Assessment as Investing Account |
Overall Assessment as Spending Account |
Associated Bank |
Average |
Average |
Bank of America |
Average |
Below Average |
Fidelity |
High |
High |
First American Bank |
Average |
Above Average |
HealthEquity |
Above Average |
Above Average |
HSA Bank* |
Above Average |
Above Average |
Lively |
Average |
Above Average |
NueSynergy |
Above Average |
Average |
Optum |
Average |
Below Average |
Saturna |
Above Average |
Above Average |
UMB |
Average |
Above Average |
*HSA Bank is Morningstar, Inc.'s HSA plan provider. |
This year's study included one new addition: NueSynergy, a business service provider that is expanding the reach of its HSA offerings to a national level. Morningstar does not assess HSAs offered by employers, as details can vary depending on relationships and headcount.
Click here to read the HSA Landscape Report, which includes complete assessments for the 11 providers and methodology. An article on Morningstar.com summarizing the report's findings is available here .
About Morningstar, Inc.
Morningstar, Inc. is a leading provider of independent investment insights in North America, Europe, Australia, and Asia. The Company offers an extensive line of products and solutions that serve a wide range of market participants, including individual and institutional investors in public and private capital markets, financial advisors and wealth managers, asset managers, retirement plan providers and sponsors, and issuers of fixed-income securities. Morningstar provides data and research insights on a wide range of investment offerings, including managed investment products, publicly listed companies, private capital markets, debt securities, and real-time global market data. Morningstar also offers investment management services through its investment advisory subsidiaries, with approximately $316 billion in AUMA as of June 30, 2024. The Company operates through wholly owned subsidiaries in 32 countries. For more information, visit www.morningstar.com/company . Follow Morningstar on X (formerly known as Twitter) @MorningstarInc .
Morningstar's Manager Research Group
Morningstar's Manager Research Group consists of various wholly owned subsidiaries of Morningstar, Inc. including, but not limited to, Morningstar Research Services LLC. Morningstar Manager Research provides independent, fundamental analysis on managed investment strategies. Morningstar views are expressed in the form of Morningstar Medalist Ratings, which are derived through research of three key pillars-People, Process, and Parent. The Morningstar Medalist Rating is the summary expression of Morningstar's forward-looking analysis of investment strategies as offered via specific vehicles using a rating scale of Gold, Silver, Bronze, Neutral, and Negative. A global research team issues detailed research reports on strategies that span vehicle, asset class, and geography.
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