Investing in health savings accounts: Not ready for prime time

Will health savings accounts be the new 401(k)?

Boosters of health savings accounts (HSAs) in the financial services industry and in the U.S. Congress think so. They argue that the tax advantages of health savings accounts (HSAs) make them a superior option for saving – especially to cover the rising cost of healthcare in retirement. And expansion of access to HSAs and contribution limits have been a centerpiece of most Republican health reform plans ricocheting around Washington this year.

But a new report suggests that most HSA offerings are not yet ready for prime time. Morningstar, which pioneered independent grading of mutual funds, evaluated 10 popular HSA platforms both as spending accounts and as investment vehicles. The report gave passing marks for both spending and investing to just one of the 10, “suggesting there is much room for improvement across the industry.”

That is a polite, glass-half-full description. If HSAs are to play a major role financing healthcare, they will need to be more robust and less expensive – and more transparent to consumers shopping for the best deals.

Learn more at Reuters Money.


  1. Ron Manuel says:

    You could have served you readers even better by providing the key data in the report. The report is available for download at:
    If you download the pdf report, the key exhibit is on page 3.
    The winning company is called The HSA Authority

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