Payflex HSA fees announcement

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Nate79
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Payflex HSA fees announcement

Post by Nate79 » Wed Aug 30, 2017 11:44 pm

I recently received an email announcement from Payflex HSA that starting October 1, 2017 that they will no longer have any fees for investing in the HSA. Previously they imposed a $2/month fee for having an investment account.

This announcement came by email with a link to a pdf of a new fee schedule as this HSA is part of my employer offered HDHP health plan. I can not find an external link or any announcement for this on the web. Perhaps others got the same announcement?

Considering they offer some nice Vanguard fund oletios with low ER they are a pretty decent HSA and now with no monthly fees.

Spirit Rider
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Re: Payflex HSA fees announcement

Post by Spirit Rider » Wed Aug 30, 2017 11:51 pm

Nate79 wrote:
Wed Aug 30, 2017 11:44 pm
Considering they offer some nice Vanguard fund oletios with low ER they are a pretty decent HSA and now with no monthly fees.
This may not be a fee change by the provider, It could just be a YMMV situation where your company may have decided to subsidize the fee.

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Nate79
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Re: Payflex HSA fees announcement

Post by Nate79 » Wed Aug 30, 2017 11:56 pm

Spirit Rider wrote:
Wed Aug 30, 2017 11:51 pm
Nate79 wrote:
Wed Aug 30, 2017 11:44 pm
Considering they offer some nice Vanguard fund oletios with low ER they are a pretty decent HSA and now with no monthly fees.
This may not be a fee change by the provider, It could just be a YMMV situation where your company may have decided to subsidize the fee.
It's possible. There was very little information and the fee schedule is only specified as for Payflex with nothing specifically referencing my company.

snowangel50
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Re: Payflex HSA fees announcement

Post by snowangel50 » Thu Aug 31, 2017 12:18 am

I also received the same announcement by email. It was (un)timely, because I just submitted my application to Saturna.
I'm certain my company is NOT subsidizing the fee.

I wonder if the $0 monthly fee is a hook to get investors. Maybe in the future, an announcement will surface about a NEW fee.

My past interactions (yes, many) with the Payflex HSA reps discussing the HSA account (not the investment) has been unsatisfactory. Before I make any investment, I would make several inquiries on different issues at different times, to make sure they are knowledgeable and service oriented. Their list of fund choices are limited, so another reason to wait until they have more to offer.

inbox788
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Re: Payflex HSA fees announcement

Post by inbox788 » Thu Aug 31, 2017 2:44 am

It's probably a simplification. They're making enough on the AUM fees and probably have higher balances on accounts as people figured out benefits of the account. The accounting and trouble with charging $2 is that much of it is wasted on overhead. It's a lot more efficient to simply raise the EF by 0.02 to cover the expense, and may even be more profitable for them in the long run. Those $2 fees are just wasting customer service time and polluting the ledger, and most likely wasn't really a moneymaker for them.

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Edie
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Re: Payflex HSA fees announcement

Post by Edie » Mon Aug 19, 2019 1:35 pm

Fees are back :annoyed Sharing for others who may not have seen.

From an email I received:
Effective October 1, 2019, you’ll notice the following updates regarding your investment account and platform:
...
A minimal monthly fee to your investment account. The fee is .02% of your investment account balance. This monthly fee aligns to industry standards. And it is automatically deducted from your HSA cash account each month.
I don't have a lot invested (5.5k growing by about 400 in deposits a month (family limit)), but it's annoying that now I need to consider whether what I have invested and the expense fees on those funds, plus the new expense fee is worth moving to a no-fee account, and learning about how often I can move funds, and whether there are fees associated with that.

I probably won't transfer as I still have access to Vanguard funds in the account, I just much preferred when it was fee-less from the HSA administrator perspective, and I didn't have to consider both expenses. :annoyed

inbox788
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Re: Payflex HSA fees announcement

Post by inbox788 » Fri Nov 08, 2019 2:18 am

Edie wrote:
Mon Aug 19, 2019 1:35 pm
Fees are back :annoyed Sharing for others who may not have seen.
...I don't have a lot invested (5.5k growing by about 400 in deposits a month (family limit)), but it's annoying that now I need to consider whether what I have invested and the expense fees on those funds, plus the new expense fee is worth moving to a no-fee account, and learning about how often I can move funds, and whether there are fees associated with that.

I probably won't transfer as I still have access to Vanguard funds in the account, I just much preferred when it was fee-less from the HSA administrator perspective, and I didn't have to consider both expenses. :annoyed
I'm sorry I suggested they raise they EF. I was afraid someone from Payflex was reading this thread and got some dumb idea. I think this investment fee is on top of the account fee of $3/month for some customers. For $5k, it's only $1 more a month, and currently some plans top out at $10/month, so total fees could be as much as $120+36=$156/year.

I was looking at the other threads and Fidelity HSA is well liked with their zero fees for accounts and investments. Some folks have tried to do in-kind transfers and failed. I'm looking into the consequences of liquidating the positions and doing a partial transfer of most of the account in cash. I'm still required to keep the account as part of the HDHP. I'll probably transfer out every year or so and when I quit, transfer out whatever remains.

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