Anyone using Optum Bank for HSA?

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whitecliff
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Joined: Sun Jun 02, 2013 6:30 pm

Anyone using Optum Bank for HSA?

Post by whitecliff » Sat Feb 25, 2017 5:50 pm

I am looking to setup so that I can invest all of my HSA money and pay for my medical expenses out of pocket. I have done a lot of research and from what I can find optum bank is the best option. I called two difference service reps and neither seemed real sure about my answers but they were both confident that if I maintained 5k in the account, 2k which had to stay in the cash side there would be no fees at all. They offer all the main vanguard funds. The first 2k in any account stays in cash and anything over that overflows into an "investable" account. The only fee they said was if the combined total drops below 5k and then there is 4.25 month. Does anyone use them and what is their experience? Thank you.

cameron
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Re: Anyone using Optum Bank for HSA?

Post by cameron » Sat Feb 25, 2017 6:11 pm

Yes, I've been using Optum Bank for about 5 yrs. The only "problem" was that once or twice their portal was offline for a few hours. Not at all bad for that length of time. I haven't used their investing option as I've kept my amount just over the $2k threshold.

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IlliniGuy
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Re: Anyone using Optum Bank for HSA?

Post by IlliniGuy » Sat Feb 25, 2017 6:59 pm

I believe Optum is a unit of United Healthcare and is often the HSA provider that employers providing United Healthcare coverage to employees use for payroll contributions to HSA accounts. From what I've read here, it seems that different employers negotiate different terms for their employees' Optum HSA accounts. People seem to need to have varying minimum balances to avoid fees and have different investment options.

My account requires a $5,000 savings account balance but provides access to a number of Vanguard funds. I'm quite pleased with my Optum account.

whitecliff
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Re: Anyone using Optum Bank for HSA?

Post by whitecliff » Sat Feb 25, 2017 7:03 pm

IlliniGuy wrote:I believe Optum is a unit of United Healthcare and is often the HSA provider that employers providing United Healthcare coverage to employees use for payroll contributions to HSA accounts. From what I've read here, it seems that different employers negotiate different terms for their employees' Optum HSA accounts. People seem to need to have varying minimum balances to avoid fees and have different investment options.

My account requires a $5,000 savings account balance but provides access to a number of Vanguard funds. I'm quite pleased with my Optum account.


So if you maintain 5k then you have no fees? If so this is the best provider out there in that there are no fees and still provide vanguard funds. Am I missing something, seems to good to be true.

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IlliniGuy
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Re: Anyone using Optum Bank for HSA?

Post by IlliniGuy » Sat Feb 25, 2017 7:12 pm

whitecliff wrote:
IlliniGuy wrote:I believe Optum is a unit of United Healthcare and is often the HSA provider that employers providing United Healthcare coverage to employees use for payroll contributions to HSA accounts. From what I've read here, it seems that different employers negotiate different terms for their employees' Optum HSA accounts. People seem to need to have varying minimum balances to avoid fees and have different investment options.

My account requires a $5,000 savings account balance but provides access to a number of Vanguard funds. I'm quite pleased with my Optum account.


So if you maintain 5k then you have no fees? If so this is the best provider out there in that there are no fees and still provide vanguard funds. Am I missing something, seems to good to be true.


Yes, exactly. In early January I started investing and I haven't paid any fees. Again, terms seem to vary between different employer sponsored accounts and publicly available accounts, so confirm the terms available to you for yourself.

whitecliff
Posts: 64
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Re: Anyone using Optum Bank for HSA?

Post by whitecliff » Sat Feb 25, 2017 7:25 pm

IlliniGuy wrote:
whitecliff wrote:
IlliniGuy wrote:I believe Optum is a unit of United Healthcare and is often the HSA provider that employers providing United Healthcare coverage to employees use for payroll contributions to HSA accounts. From what I've read here, it seems that different employers negotiate different terms for their employees' Optum HSA accounts. People seem to need to have varying minimum balances to avoid fees and have different investment options.

My account requires a $5,000 savings account balance but provides access to a number of Vanguard funds. I'm quite pleased with my Optum account.


So if you maintain 5k then you have no fees? If so this is the best provider out there in that there are no fees and still provide vanguard funds. Am I missing something, seems to good to be true.


Yes, exactly. In early January I started investing and I haven't paid any fees. Again, terms seem to vary between different employer sponsored accounts and publicly available accounts, so confirm the terms available to you for yourself.


January 2017?

Dottie57
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Re: Anyone using Optum Bank for HSA?

Post by Dottie57 » Sat Feb 25, 2017 7:29 pm

IlliniGuy wrote:I believe Optum is a unit of United Healthcare and is often the HSA provider that employers providing United Healthcare coverage to employees use for payroll contributions to HSA accounts. From what I've read here, it seems that different employers negotiate different terms for their employees' Optum HSA accounts. People seem to need to have varying minimum balances to avoid fees and have different investment options.

My account requires a $5,000 savings account balance but provides access to a number of Vanguard funds. I'm quite pleased with my Optum account.


+1. Employers select different options in their contracts. It isn't just up to Optum Bank.

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IlliniGuy
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Re: Anyone using Optum Bank for HSA?

Post by IlliniGuy » Sat Feb 25, 2017 7:45 pm

whitecliff wrote:
IlliniGuy wrote:
whitecliff wrote:
IlliniGuy wrote:I believe Optum is a unit of United Healthcare and is often the HSA provider that employers providing United Healthcare coverage to employees use for payroll contributions to HSA accounts. From what I've read here, it seems that different employers negotiate different terms for their employees' Optum HSA accounts. People seem to need to have varying minimum balances to avoid fees and have different investment options.

My account requires a $5,000 savings account balance but provides access to a number of Vanguard funds. I'm quite pleased with my Optum account.


So if you maintain 5k then you have no fees? If so this is the best provider out there in that there are no fees and still provide vanguard funds. Am I missing something, seems to good to be true.


Yes, exactly. In early January I started investing and I haven't paid any fees. Again, terms seem to vary between different employer sponsored accounts and publicly available accounts, so confirm the terms available to you for yourself.


January 2017?
Yes

jcerickson
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Re: Anyone using Optum Bank for HSA?

Post by jcerickson » Sun Feb 26, 2017 12:16 pm

I have an Optum Bank HSA through United HealthCare, also. As others have stated, each individual employer plan varys. With our plan, we must keep a minimum cash balance of $2K and then can invest amounts over that. We have a fixed $1/month fee for the cash account and an additional fixed $3/month fee if you also open an investment account. I even rolled another HSA into the Optum account because the fees for the other account increased as my balance increased - the Optum account was the least expensive HSA with Vanguard funds as investment options that I found.

523HRR
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Re: Anyone using Optum Bank for HSA?

Post by 523HRR » Mon Feb 27, 2017 6:27 pm

Our HSA has been with Optum Bank for 7+ years now. We avoid all fees keeping $5K in cash and invest the rest in VTSAX. No complaints.

whitecliff
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Re: Anyone using Optum Bank for HSA?

Post by whitecliff » Mon Feb 27, 2017 9:52 pm

523HRR wrote:Our HSA has been with Optum Bank for 7+ years now. We avoid all fees keeping $5K in cash and invest the rest in VTSAX. No complaints.



no fees? I think as of recently they are now charging 0.03% per month on all investments. If you look closely I bet you are now paying this fee.

Mr.Wu
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Re: Anyone using Optum Bank for HSA?

Post by Mr.Wu » Mon Feb 27, 2017 10:11 pm

My employer uses UHC and Optum bank. We keep 2k to avoid fees and the rest are invested in $100s. There has been zero maintenance fee or investment fee yet. I will monitor my statements and update this post if a fee pops up in the future.

BTW, another thread said in April the vanguard funds would be upgraded from investor share to admiral share. I recall in 2015 they transferred my vanguard SP500 fund to vanguard SP500 - A, I assume A stands for admiral. Right now the vanguard funds for me to choose from are admiral shares (I was in fact a little upset they're not institutional plus shares like what my 401k plan has)

perl
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Re: Anyone using Optum Bank for HSA?

Post by perl » Mon Feb 27, 2017 10:24 pm

My employer switched to Optum starting last month. In my case my employer pays the monthly fee, and I only need to hold $1k in the savings account before investing. I haven't set up the investments yet, I'll have to see if the 3 basis point fee applies in our accounts.

523HRR
Posts: 106
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Re: Anyone using Optum Bank for HSA?

Post by 523HRR » Tue Feb 28, 2017 3:37 pm

whitecliff wrote:no fees? I think as of recently they are now charging 0.03% per month on all investments. If you look closely I bet you are now paying this fee.

Have never incurred a fee on my account, other than the embedded 5bps annual expense ratio for the Vanguard Admiral shares. Account fees may vary depending on your employer group. Here is the fee schedule for my account from the Optum site. $3 monthly maintenance fee is waived if average balance is at least $3,000. Amounts over $2,000 can be invested.

Standard Fees

Monthly Maintenance Fee
$0.00*

Includes use of:
- Health Savings Account Debit MasterCard® – to pay charges directly
- Online Bill Payment and Mobile Access
- Receipt Vault – allows you to upload and store images of receipts online

ATM and Outbound Transfer Fee
$2.50 per ATM transaction. In addition to our fee, the bank/ATM you use to withdraw funds may charge you their own fee.
$20.00 per Outbound Transfer or Rollover to another HSA Custodian.

* $3.00 OF THE $3.00 FEE IS BEING PAID ON YOUR BEHALF. IF FEE PAYMENT ARRANGEMENTS CHANGE FOR YOUR ACCOUNT, THE $3.00 FEE WILL BECOME YOUR RESPONSIBILITY AND WILL BE ASSESSED TO YOUR ACCOUNT FOR AVERAGE BALANCES BELOW $3,000. THE AVERAGE BALANCE TO WAIVE THE MONTHLY MAINTENANCE FEE DOES NOT INCLUDE INVESTMENT FUNDS.

Investment Account

Monthly Investment Fee
$0.00

Investment Threshold
$2,000 – The balance in your HSA must remain at or exceed the Investment Threshold each time a new investment is made.

whitecliff
Posts: 64
Joined: Sun Jun 02, 2013 6:30 pm

Re: Anyone using Optum Bank for HSA?

Post by whitecliff » Tue Feb 28, 2017 3:51 pm

523HRR wrote:
whitecliff wrote:no fees? I think as of recently they are now charging 0.03% per month on all investments. If you look closely I bet you are now paying this fee.

Have never incurred a fee on my account, other than the embedded 5bps annual expense ratio for the Vanguard Admiral shares. Account fees may vary depending on your employer group. Here is the fee schedule for my account from the Optum site. $3 monthly maintenance fee is waived if average balance is at least $3,000. Amounts over $2,000 can be invested.

Standard Fees

Monthly Maintenance Fee
$0.00*

Includes use of:
- Health Savings Account Debit MasterCard® – to pay charges directly
- Online Bill Payment and Mobile Access
- Receipt Vault – allows you to upload and store images of receipts online

ATM and Outbound Transfer Fee
$2.50 per ATM transaction. In addition to our fee, the bank/ATM you use to withdraw funds may charge you their own fee.
$20.00 per Outbound Transfer or Rollover to another HSA Custodian.

* $3.00 OF THE $3.00 FEE IS BEING PAID ON YOUR BEHALF. IF FEE PAYMENT ARRANGEMENTS CHANGE FOR YOUR ACCOUNT, THE $3.00 FEE WILL BECOME YOUR RESPONSIBILITY AND WILL BE ASSESSED TO YOUR ACCOUNT FOR AVERAGE BALANCES BELOW $3,000. THE AVERAGE BALANCE TO WAIVE THE MONTHLY MAINTENANCE FEE DOES NOT INCLUDE INVESTMENT FUNDS.

Investment Account

Monthly Investment Fee
$0.00

Investment Threshold
$2,000 – The balance in your HSA must remain at or exceed the Investment Threshold each time a new investment is made.


Mine would be a private account and it was going have 0.033% monthly maintenance fee.

jmk
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Re: Anyone using Optum Bank for HSA?

Post by jmk » Tue Feb 28, 2017 9:07 pm

Although they don't reveal it, they have three options for investing with most contracts: the default is $2000 kept in savings excess invested with 1$/m fee. They also have an option that allows only $500 kept in savings but something like $60/yr in fees. You have to change by phone, the options aren't on the web site.
Last edited by jmk on Tue Jun 20, 2017 10:59 am, edited 3 times in total.

ERISA Stone
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Re: Anyone using Optum Bank for HSA?

Post by ERISA Stone » Tue Feb 28, 2017 9:23 pm

I pay $3/month if I don't keep at least $5k cash. I keep the minimum $2k and pay the $3 fee. I would rather invest the additional $3k than have it sitting in cash. I haven't noticed another fee being taken.

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