PLANSPONSOR - December/January 2020 - 38

INVESTMENT FOCUS
HSA Investment Options
A valuable way to grow savings for health care expenses
H
ealth savings accounts (HSAs)
may be the most powerful choice
in the benefits toolbox, as they
grant employees tax-deferred saving, a tax
advantage on current health care spending
and, through tax-deferred investing,
funds for income and health care in
retirement; some come with an employer's
contribution. Although the accounts
are widely available, few employees take
advantage of the investment potential.
HSAs were first offered in 2004
and have shown steady growth among
U.S. health care consumers. Devenir,
a provider of investment packages for
HSAs, surveys the market twice a year
and reports there were 26 million of the
accounts at mid-year 2019, holding assets
of $61.7 billion, and showing respective
year-over-year growth rates of 12% and
20%. By way of comparison, the latest
tally from the Department of Labor (DOL),
based on Form 5500 filings for 2016,
revealed 100 million participants in U.S.
defined contribution (DC) retirement
plans and assets approaching $6 trillion.
" We see HSAs as what the DC space
was 25 years ago, " observes Greg Adams,
consultant at Fiduciary Investment
Advisors in Windsor, Connecticut. " There
are many vendors in the market, wide
variations in investment options, share
classes, proprietary requirements, and
fees, and not a lot of scrutiny yet from
38 PLANSPONSOR.COM December 2019 - January 2020
Art by Simon Bailly
regulators-though that is coming. "
Offering HSAs is entirely different
than offering a DC plan. HSAs are a
companion to an employer-sponsored
high-deductible health plan (HDHP), so
employers typically have little involvement
with the accounts. An employer
may contribute to its workers' HSAs,
but mostly it is up to the employee to
open an account and decide whether
and how much to contribute and invest.
Accordingly, Devenir reports, about 15%
of HSAs have a zero balance.
" An employer may encourage HSA
use by contributing its own money and
make it easier for employees by hooking
them up to the payroll system, but it's

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PLANSPONSOR - December/January 2020

Table of Contents for the Digital Edition of PLANSPONSOR - December/January 2020

The Savings Hierarchy
2019 PLANSPONSOR Best in Class DC Providers
On Their Own Terms
HSA Investment Options
Steady as It Goes
The Employer Component
PLANSPONSOR - December/January 2020 - Cover1
PLANSPONSOR - December/January 2020 - Cover2
PLANSPONSOR - December/January 2020 - 1
PLANSPONSOR - December/January 2020 - 2
PLANSPONSOR - December/January 2020 - 3
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PLANSPONSOR - December/January 2020 - 12
PLANSPONSOR - December/January 2020 - 13
PLANSPONSOR - December/January 2020 - The Savings Hierarchy
PLANSPONSOR - December/January 2020 - 15
PLANSPONSOR - December/January 2020 - 16
PLANSPONSOR - December/January 2020 - 17
PLANSPONSOR - December/January 2020 - 2019 PLANSPONSOR Best in Class DC Providers
PLANSPONSOR - December/January 2020 - 19
PLANSPONSOR - December/January 2020 - 20
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PLANSPONSOR - December/January 2020 - 30
PLANSPONSOR - December/January 2020 - 31
PLANSPONSOR - December/January 2020 - On Their Own Terms
PLANSPONSOR - December/January 2020 - 33
PLANSPONSOR - December/January 2020 - 34
PLANSPONSOR - December/January 2020 - 35
PLANSPONSOR - December/January 2020 - 36
PLANSPONSOR - December/January 2020 - 37
PLANSPONSOR - December/January 2020 - HSA Investment Options
PLANSPONSOR - December/January 2020 - 39
PLANSPONSOR - December/January 2020 - Steady as It Goes
PLANSPONSOR - December/January 2020 - 41
PLANSPONSOR - December/January 2020 - The Employer Component
PLANSPONSOR - December/January 2020 - 43
PLANSPONSOR - December/January 2020 - 44
PLANSPONSOR - December/January 2020 - 45
PLANSPONSOR - December/January 2020 - 46
PLANSPONSOR - December/January 2020 - 47
PLANSPONSOR - December/January 2020 - 48
PLANSPONSOR - December/January 2020 - Cover3
PLANSPONSOR - December/January 2020 - Cover4
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