Payflex HSA fees announcement

Have a question about your personal investments? No matter how simple or complex, you can ask it here.
Post Reply
Nate79
Posts: 1212
Joined: Thu Aug 11, 2016 6:24 pm
Location: Portland, OR

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
Posts: 6217
Joined: Fri Mar 02, 2007 2:39 pm

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.

Nate79
Posts: 1212
Joined: Thu Aug 11, 2016 6:24 pm
Location: Portland, OR

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
Posts: 1
Joined: Thu Aug 31, 2017 12:05 am

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
Posts: 4099
Joined: Thu Mar 15, 2012 5:24 pm

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.

Post Reply