Room for Improvement in Growing HSA Plan Market
Our research on health savings account providers looked at 10 prominent plans as spending vehicles and as investment vehicles.
Leo Acheson: Health savings accounts have been growing in popularity. In fact, assets in HSA plans have nearly doubled during the last three years. At the end of 2016, there was more than $35 billion in HSA plans. That trend seems likely to continue, which is no surprise, given the tax benefits offered by HSA plans.
There are hundreds of HSA providers, but it's a very under-researched corner of the market. We have experience evaluating investment menus, such as 529 plans, so in order to provide a resource for investors, we analyzed 10 of the most prominent HSA plans in the market. We evaluated each plan from two different lenses: using them as a spending vehicle to cover current medical costs, and using them as an investment vehicle to save for future medical expenses.