PLANSPONSOR - April/May 2018 - 60

Health Savings Account Administration
H
ealth Savings Accounts (HSAs)-pretax
savings accounts available to those
enrolled in high-deductible health plans
(HDHP)s-were established as part of the
Medicare Prescription Drug, Improvement
and Modernization Act and became law in
January 2004. Since that time, adoption
of HSAs has grown exponentially, with
America's Health Insurance Plans (AHIP)
reporting 20.2 million HDHP/HSA enrollees
in its 2016 Survey of Health Savings
Account - High Deductible Health Plans.
The continued adoption of HSAs
reflects how many employees, in the face
of rising health care costs, have taken on
greater decisionmaking roles in how their
health care dollars are spent. Employers
are increasingly looking to HSA custodians
and administrators to provide additional
capabilities and tools.
Fortunately, employers have many
choices when selecting an HSA partner.
Providers compete in a number of
different areas, including local/national
participant service offerings; interest
rates on cash balances; investment option
types and availability; and bundling
strategies. The latter give employers the
option to consolidate administration and
reporting of the accounts with health
insurance programs, defined contribution
(DC) plans or other workplace benefits.
-Brian O'Keefe
Industry Snapshot
HSA Summary
HSA accounts
HSA assets ($mm)
Total employer affiliations
HSA Accounts by Balance
<$1,000
$1,000 - $2,500
>$2,500 - $5,000
>$5,000 - $10,000
>$10,000
HSA accounts receiving
any contribution
3,731,630
Workplace HSAs
3,211,211
$8,139
26,870
Total HSAs % at Workplace
3,947,840
$9,857
-
81%
83%
-
1,661,616
635,437
486,145
270,989
154,481
Average employee
contribution
$1,199
Average employer
contribution
$479
Methodology
Using publicly available sources, PLANSPONSOR contacted leading providers of
health savings account (HSA) administration services in March for our 2018 Health
Savings Account Survey and received eight responses by the survey deadline. Although
respondents represent only a fraction of the hundreds of national and local organizations
capable of managing employer-sponsored HSAs, their profiles reflect the range of
experience and capabilities found in the market. All data are as of December 31, 2017;
additional information on each listed provider is available at www.plansponsor.com/
research. For more information on survey results or to be included in a future version
of the guide, please email surveys@strategic-i.com.
Select HSA Administration Service Providers
Providers
Total
Employer
ABG Retirement Plan Services
Bank of America
BenefitWallet1
Fidelity Investments
The HSA Authority2
Kitsap Bank
PNC BeneFit Plus
UMB Healthcare Services
165
4,653
Total HSA
Affiliation Total HSAs Assets ($mm)
$49
3,379
14,100
282
1,413
NR
3,010
10,000
763,259
1,000,000
700,211
100,785
3,278
145,175
1,230,479
$1,978
$2,300
$2,597
$205
$11
$350
$2,367
Investment
Threshold
$200
$1,000
$1,000
$1
$1,000
$1
$2,000
$1,000
% HSAs
Holding
Investments
97%
4%
3%
8%
1%
0%
3%
3%
Interest
On $5,000
Cash
1.44%
0.20%
0.15%
NR
0.03%
0.40%
0.20%
0.15%
Monthly
Account
Fee
$4.50
Varies
<$2.25
Varies
None
$2.00
<$2.95
$2.95
1BenefitWallet is a product offered by Conduent Inc. with banking services offered through The Bank of New York Mellon.
2Powered by Old National Bank. NR = Not reported in time for publication
60 PLANSPONSOR.com April-May 2018
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PLANSPONSOR - April/May 2018

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