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HSA Pricing Comparison

This table assumes a total HSA balance of $15,000 (which is the average total HSA balance according to the Morningstar 2019 HSA Landscape). If the HSA provider imposed an investment threshold, or minimum cash balance, the amount of the threshold was kept in cash and the rest was invested. If the HSA provider did not impose an investment threshold, all $15,000 was invested.

Data source: Morningstar 2019 HSA Landscape. Calculations assume a 6% annual market return.

Provider NameAnnual Maintenance FeeAnnual Investment Fee ($)Annual Investment Fee (%)Investment Threshold (Minimum Cash Balance)Annual Interest on $2,000 Cash BalanceAnnual Opportunity Cost* (as calculated by HealthSavings)Underlying Fund Fee (Expense Ratio) for Equal-Weighted 60/40 PortfolioTotal Annual Cost
Bank of America$30$0$0$1,000$2$580.34%$136
HealthEquity$0 (for $2K cash balance)$00.36%$2,000$1$1190.04%$171
UMB Bank$35$36$0$1,000$1$590.32%$175
HSA Bank$30$00.30%$1,000$1$590.32%$176
Fifth Third$0 (for 15K total balance)$240.20%$2,000$5$1150.32%$207
Optum Bank$33$00.36%$2,000$1$1190.33%$242

Annual Maintenance Fees and Annual Investment Fees are from Exhibit 21 of the Morningstar 2019 HSA Landscape
Investment Thresholds (Minimum Cash Balances) are from Exhibit 30 of the Morningstar 2019 HSA Landscape
Annual Interest on $2,000 Cash Balances are from Exhibit 7 of the Morningstar 2019 HSA Landscape
Underlying Fund Fees (Expense Ratios) for Equal-Weighted 60/40 Portfolios are from Exhibit 23 of the Morningstar 2019 HSA Landscape

Here is how Total Annual Cost was calculated: (Annual Maintenance Fee) + (Annual Investment Fee ($) + (Annual Investment Fee (%) x ($15,000 – Investment Threshold))) + (Annual Opportunity Cost) + (($15,000 – Investment Threshold) x Underlying Fund Fee for Equal-Weighted 60/40 Portfolios).

*Here is how Annual Opportunity Cost was calculated: ((Investment Threshold x 6%) – Annual Interest on $2,000 Cash Balance).