Healthequity HSA

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sanfran2015
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Healthequity HSA

Post by sanfran2015 » Sun Aug 13, 2017 12:35 am

Does anyone have experience with Healthequity as an HSA provider? Their investment offering is not Boglehead friendly at all and they charge a fee for select VG funds. What funds are good investment options from their offering?

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Kosmo
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Re: Healthequity HSA

Post by Kosmo » Sun Aug 13, 2017 6:17 am

I have 2 HSA accounts with Health Equity (1 is in my wife's name). Both of our employers have agreements with them for direct deposit off contributions.

The fee to access Vanguard funds is 0.4% per year. Even when adding that to the fund expenses it's still less than the ERs of the active funds they offer for no additional fee. I invest everything over the min cash requirement in a mix of VIIIX, VBMPX, and VGSNX.

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Tamarind
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Re: Healthequity HSA

Post by Tamarind » Sun Aug 13, 2017 6:46 am

My employer uses them. I'm guessing yours is also an employer plan as you'd otherwise have chosen a different provider.

Yes, they charge an extra fee for access to VG funds (0.3% annual in my account). But in my account that fee gets me access to institutional shares of key funds - TSM, TBM etc. Compared to not investing an HSA at all, it's still a benefit, and even with the extra fee I think the lowest cost VG options are the best choices available in the account. I'll definitely be moving it when I change jobs.

adptnt
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Re: Healthequity HSA

Post by adptnt » Sun Aug 13, 2017 10:12 am

Tamarind wrote:
Sun Aug 13, 2017 6:46 am
My employer uses them. I'm guessing yours is also an employer plan as you'd otherwise have chosen a different provider.

Yes, they charge an extra fee for access to VG funds (0.3% annual in my account). But in my account that fee gets me access to institutional shares of key funds - TSM, TBM etc. Compared to not investing an HSA at all, it's still a benefit, and even with the extra fee I think the lowest cost VG options are the best choices available in the account. I'll definitely be moving it when I change jobs.
Where would you move it to? What are some better options that offer low cost funds without the added fees?

moneyman11
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Re: Healthequity HSA

Post by moneyman11 » Sun Aug 13, 2017 11:05 am

adptnt wrote:
Sun Aug 13, 2017 10:12 am
Tamarind wrote:
Sun Aug 13, 2017 6:46 am
My employer uses them. I'm guessing yours is also an employer plan as you'd otherwise have chosen a different provider.

Yes, they charge an extra fee for access to VG funds (0.3% annual in my account). But in my account that fee gets me access to institutional shares of key funds - TSM, TBM etc. Compared to not investing an HSA at all, it's still a benefit, and even with the extra fee I think the lowest cost VG options are the best choices available in the account. I'll definitely be moving it when I change jobs.
Where would you move it to? What are some better options that offer low cost funds without the added fees?
HSA Bank .... they give access to Ameritrade which gives access to commission free Vanguard ETFs.

My employer uses Health Equity. Every year I move a chunk to my HSA Bank account and invest it there.
Only downside is the need to keep $5k in cash at HSA Bank to avoid their monthly fee.

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Tamarind
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Re: Healthequity HSA

Post by Tamarind » Sun Aug 13, 2017 11:14 am

moneyman11 wrote:
Sun Aug 13, 2017 11:05 am
adptnt wrote:
Sun Aug 13, 2017 10:12 am
Tamarind wrote:
Sun Aug 13, 2017 6:46 am
My employer uses them. I'm guessing yours is also an employer plan as you'd otherwise have chosen a different provider.

Yes, they charge an extra fee for access to VG funds (0.3% annual in my account). But in my account that fee gets me access to institutional shares of key funds - TSM, TBM etc. Compared to not investing an HSA at all, it's still a benefit, and even with the extra fee I think the lowest cost VG options are the best choices available in the account. I'll definitely be moving it when I change jobs.
Where would you move it to? What are some better options that offer low cost funds without the added fees?
HSA Bank .... they give access to Ameritrade which gives access to commission free Vanguard ETFs.

My employer uses Health Equity. Every year I move a chunk to my HSA Bank account and invest it there.
Only downside is the need to keep $5k in cash at HSA Bank to avoid their monthly fee.
Yes, or some other place based on my research when the time comes. I would prefer not to be forced to hold cash, as HealthEquity ($2k) and HSA Bank ($5k) do, since I have my own emergency fund to cover medical needs. I also dislike HE's added fee to access low cost index funds, but at least they transparent about it.

It's still better to have access to an HSA due to tax benefits, and the VG options are still cheaper than the non-VG options.

cas
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Re: Healthequity HSA

Post by cas » Sun Aug 13, 2017 11:17 am

adptnt wrote:
Sun Aug 13, 2017 10:12 am
Where would you move it to? What are some better options that offer low cost funds without the added fees?
Morningstar published a review of 10 prominent HSA vendors recently. Lots of information gathered in one place. Use you own judgement on whether the metrics they chose for evaluation apply to your specific situation or not (some of the metrics would seem to apply more to employers selecting an HSA vendor for a large number of employees with varying levels of investing knowledge and less to individual bogleheads.)

"2017 Health Savings Account Landscape" https://corporate1.morningstar.com/Rese ... landscape/

The Bogleheads wiki page on HSAs also has a summary of some HSA vendors. Also, there is a big "Best HSA (2017)" thread with various people's personal experiences/opinions with various HSAs viewtopic.php?t=207051

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Silly Wabbit
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Re: Healthequity HSA

Post by Silly Wabbit » Sun Aug 13, 2017 11:45 am

I've had a good experience with health equity.

Health Equity offers low cost index funds and have a passable website. My employer covers the .4% annual, AUM fee while I'm an employee. Only $500 is required to be kept in cash.

I don't know about the spending account side of things; I don't spend HSA money on current health expenses.

When I leave my employer, I'll reassess to see if a lower cost option exists.

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willthrill81
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Re: Healthequity HSA

Post by willthrill81 » Sun Aug 13, 2017 3:23 pm

My HSA is with Health Equity due to my employer's choice. I've only recently started maxing it out, and I'll probably look into moving funds from it elsewhere about once a year, probably Saturna. An advantage of HE over some other custodians is that they don't charge anything for trades.

Keep in mind that Health Equity's ~40 bp fee would only be $80 a year for a $20k investment. So unless your HSA is large, I don't think it's worth losing sleep over it.
“It's a dangerous business, Frodo, going out your door. You step onto the road, and if you don't keep your feet, there's no knowing where you might be swept off to.” J.R.R. Tolkien,The Lord of the Rings

sanfran2015
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Re: Healthequity HSA

Post by sanfran2015 » Sun Aug 13, 2017 9:19 pm

Kosmo wrote:
Sun Aug 13, 2017 6:17 am
I have 2 HSA accounts with Health Equity (1 is in my wife's name). Both of our employers have agreements with them for direct deposit off contributions.

The fee to access Vanguard funds is 0.4% per year. Even when adding that to the fund expenses it's still less than the ERs of the active funds they offer for no additional fee. I invest everything over the min cash requirement in a mix of VIIIX, VBMPX, and VGSNX.
I picked these as well.

samorris74
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Re: Healthequity HSA

Post by samorris74 » Wed Aug 30, 2017 11:34 am

I know that I am very late to this conversation but I will say that one decent thing that HE does is when they access the fee at least they take it out of the mandatory cash held in the account. Since they do it that way, you are getting the full return from your investments as the fee is not coming out of your investments but rather from the cash holdings (in other words, they are not selling your invested assets to cover the fee). As was already mentioned, in light of the above, it is nice to have access to the S&P at .02% expense ratio.

Here are the funds that I chose in HE with a 90/10 stock/bond split.

VIIIX = 48%
VEMPX = 12%
That creates a 60% allocation to US stocks at a ratio in line with the Vanguard Total Stock Market Fund.
VTPSX = 30%
VBMPX = 7%
VTABX = 3%

Also, it hasn't happened in awhile now but HE used to be very inconsistent with whether they were even charging me the assets based fee. I thought perhaps my employer was covering it. But then it would show up again. Lately they have been on top of the fees. Boo!

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cookymonster
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Re: Healthequity HSA

Post by cookymonster » Wed Aug 30, 2017 11:39 am

I moved my HSA balance from HE to Saturna and am pretty happy with the experience so far. It saves me about $35-$40 a year, but asset-based charges give me heartburn in principle, and those are only going to get worse as the HSA balance grows.

bluerafters
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Re: Healthequity HSA

Post by bluerafters » Sun Feb 04, 2018 6:34 am

samorris74 wrote:
Wed Aug 30, 2017 11:34 am
I know that I am very late to this conversation but I will say that one decent thing that HE does is when they access the fee at least they take it out of the mandatory cash held in the account. Since they do it that way, you are getting the full return from your investments as the fee is not coming out of your investments but rather from the cash holdings (in other words, they are not selling your invested assets to cover the fee). As was already mentioned, in light of the above, it is nice to have access to the S&P at .02% expense ratio.

Here are the funds that I chose in HE with a 90/10 stock/bond split.

VIIIX = 48%
VEMPX = 12%
That creates a 60% allocation to US stocks at a ratio in line with the Vanguard Total Stock Market Fund.
VTPSX = 30%
VBMPX = 7%
VTABX = 3%

Also, it hasn't happened in awhile now but HE used to be very inconsistent with whether they were even charging me the assets based fee. I thought perhaps my employer was covering it. But then it would show up again. Lately they have been on top of the fees. Boo!
sanfran2015 wrote:
Sun Aug 13, 2017 9:19 pm
Kosmo wrote:
Sun Aug 13, 2017 6:17 am
I have 2 HSA accounts with Health Equity (1 is in my wife's name). Both of our employers have agreements with them for direct deposit off contributions.

The fee to access Vanguard funds is 0.4% per year. Even when adding that to the fund expenses it's still less than the ERs of the active funds they offer for no additional fee. I invest everything over the min cash requirement in a mix of VIIIX, VBMPX, and VGSNX.
I picked these as well.
After a half year since posting is your asset allocations and fund choices still the same or have you made any significant changes to your HSA?

sanfran2015
Posts: 143
Joined: Mon Jan 05, 2015 10:51 pm

Re: Healthequity HSA

Post by sanfran2015 » Sun Feb 04, 2018 12:28 pm

bluerafters wrote:
Sun Feb 04, 2018 6:34 am
samorris74 wrote:
Wed Aug 30, 2017 11:34 am
I know that I am very late to this conversation but I will say that one decent thing that HE does is when they access the fee at least they take it out of the mandatory cash held in the account. Since they do it that way, you are getting the full return from your investments as the fee is not coming out of your investments but rather from the cash holdings (in other words, they are not selling your invested assets to cover the fee). As was already mentioned, in light of the above, it is nice to have access to the S&P at .02% expense ratio.

Here are the funds that I chose in HE with a 90/10 stock/bond split.

VIIIX = 48%
VEMPX = 12%
That creates a 60% allocation to US stocks at a ratio in line with the Vanguard Total Stock Market Fund.
VTPSX = 30%
VBMPX = 7%
VTABX = 3%

Also, it hasn't happened in awhile now but HE used to be very inconsistent with whether they were even charging me the assets based fee. I thought perhaps my employer was covering it. But then it would show up again. Lately they have been on top of the fees. Boo!
sanfran2015 wrote:
Sun Aug 13, 2017 9:19 pm
Kosmo wrote:
Sun Aug 13, 2017 6:17 am
I have 2 HSA accounts with Health Equity (1 is in my wife's name). Both of our employers have agreements with them for direct deposit off contributions.

The fee to access Vanguard funds is 0.4% per year. Even when adding that to the fund expenses it's still less than the ERs of the active funds they offer for no additional fee. I invest everything over the min cash requirement in a mix of VIIIX, VBMPX, and VGSNX.
I picked these as well.
After a half year since posting is your asset allocations and fund choices still the same or have you made any significant changes to your HSA?
No change on mine

bluerafters
Posts: 74
Joined: Mon Sep 18, 2017 7:14 pm

Re: Healthequity HSA

Post by bluerafters » Sun Feb 04, 2018 12:58 pm

sanfran2015 wrote:
Sun Feb 04, 2018 12:28 pm
bluerafters wrote:
Sun Feb 04, 2018 6:34 am
samorris74 wrote:
Wed Aug 30, 2017 11:34 am
I know that I am very late to this conversation but I will say that one decent thing that HE does is when they access the fee at least they take it out of the mandatory cash held in the account. Since they do it that way, you are getting the full return from your investments as the fee is not coming out of your investments but rather from the cash holdings (in other words, they are not selling your invested assets to cover the fee). As was already mentioned, in light of the above, it is nice to have access to the S&P at .02% expense ratio.

Here are the funds that I chose in HE with a 90/10 stock/bond split.

VIIIX = 48%
VEMPX = 12%
That creates a 60% allocation to US stocks at a ratio in line with the Vanguard Total Stock Market Fund.
VTPSX = 30%
VBMPX = 7%
VTABX = 3%

Also, it hasn't happened in awhile now but HE used to be very inconsistent with whether they were even charging me the assets based fee. I thought perhaps my employer was covering it. But then it would show up again. Lately they have been on top of the fees. Boo!
sanfran2015 wrote:
Sun Aug 13, 2017 9:19 pm
Kosmo wrote:
Sun Aug 13, 2017 6:17 am
I have 2 HSA accounts with Health Equity (1 is in my wife's name). Both of our employers have agreements with them for direct deposit off contributions.

The fee to access Vanguard funds is 0.4% per year. Even when adding that to the fund expenses it's still less than the ERs of the active funds they offer for no additional fee. I invest everything over the min cash requirement in a mix of VIIIX, VBMPX, and VGSNX.
I picked these as well.
After a half year since posting is your asset allocations and fund choices still the same or have you made any significant changes to your HSA?
No change on mine
Appreciate the reply. Why did you consider or disregard VFORX? It's got VTSMX 51.35%, VGTSX 34.46%, VTBIX 10.00% and VTIBX 4% and it automatically re-balances over time until 2040. The ER isn't the best at 0.16% but the access to those high quality funds is tempting.

TropikThunder
Posts: 925
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Re: Healthequity HSA

Post by TropikThunder » Wed Feb 07, 2018 11:31 pm

Silly Wabbit wrote:
Sun Aug 13, 2017 11:45 am
Health Equity offers low cost index funds and have a passable website. My employer covers the .4% annual, AUM fee while I'm an employee. Only $500 is required to be kept in cash.
samorris74 wrote:
Wed Aug 30, 2017 11:34 am
I know that I am very late to this conversation but I will say that one decent thing that HE does is when they assess the fee at least they take it out of the mandatory cash held in the account.
Silly Wabbit, how does the employer cover the AUM fee if it's paid out of the hostage cash account? They can't see into the account, can they? Do you send them a bill every month? What happens if the monthly AUM fee makes the hostage account fall below the $2,000 $500 minimum? I can't see an employer doing this.

My main gripe with HE is that they freeze your account for a week when they get a transfer request, THEN mail a check to the receiving custodian. They say it's to make sure funds are there to cover incoming reimbursement expenses but I think they're just stalling. Also, they close your account if you move all the money out even if you mark "keep the account open" on the transfer request. But, somehow the next contribution from payroll "reopens" it. We'll see ....... :|

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Silly Wabbit
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Re: Healthequity HSA

Post by Silly Wabbit » Thu Feb 08, 2018 12:39 am

TropikThunder wrote:
Wed Feb 07, 2018 11:31 pm
Silly Wabbit wrote:
Sun Aug 13, 2017 11:45 am
Health Equity offers low cost index funds and have a passable website. My employer covers the .4% annual, AUM fee while I'm an employee. Only $500 is required to be kept in cash.
samorris74 wrote:
Wed Aug 30, 2017 11:34 am
I know that I am very late to this conversation but I will say that one decent thing that HE does is when they assess the fee at least they take it out of the mandatory cash held in the account.
Silly Wabbit, how does the employer cover the AUM fee if it's paid out of the hostage cash account? They can't see into the account, can they? Do you send them a bill every month? What happens if the monthly AUM fee makes the hostage account fall below the $2,000 $500 minimum? I can't see an employer doing this.

My main gripe with HE is that they freeze your account for a week when they get a transfer request, THEN mail a check to the receiving custodian. They say it's to make sure funds are there to cover incoming reimbursement expenses but I think they're just stalling. Also, they close your account if you move all the money out even if you mark "keep the account open" on the transfer request. But, somehow the next contribution from payroll "reopens" it. We'll see ....... :|
The AUM is not paid out of the cash account. I'd guess that HE waives the AUM, and my megacorp employer pays HE directly per head or something like that. I don't pay any of the administrative fees either. Seems like Corp is incenting high deductible plans.

I paid for medical service causing the account to drop below $500. Automatic investments stopped until it was back above 500. I wasn't forced to sell investments or anything like that.

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