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A summary of the articles included in the May 2021 edition:
- HealthEquity to Acquire Further
- Voya Research Shows Employees Are Biased Toward HDHPs
- Devenir 2020 Credit Union Health Savings Account Update
- Fifth Third Bank HSAs Moving to HealthEquity
- Rubio, Sinema, Colleagues Introduce Bipartisan Bill Increasing Accessibility of Home Care for Seniors
- Health Savings Accounts Often Overlooked as a Financial Strategy For Building Personal Wealth
- 2020 Investment Balance Trends in HSAs
HealthEquity to Acquire Further
HealthEquity announced that it had entered into a definitive agreement to acquire Further, a leading provider of HSA and consumer directed benefit administration services, and the nation’s ninth largest HSA custodian overall. HealthEquity is purchasing Further for $500 million.
Voya Research Shows Employees Are Biased Toward HDHPs
New research from Voya shows employees have a bias against HDHPs and the reason for that is as simple as marketing. “One of the really interesting findings that we saw from the research about why there is that bias comes down to branding, pure and simple,” says Nate Black, vice president of consumer driven health for Voya Financial. “When we replaced the high deductible health plan name and called it something more generic, the share of people choosing high deductible health plans doubled. So just the name itself can have a really significant impact on how people think about what plan they should choose.”
Devenir 2020 Credit Union Health Savings Account Update
Devenir published our latest analysis of how health savings accounts are faring among credit unions, finding at the end of 2020 credit unions held about $1.97 billion in HSA deposits.
Fifth Third Bank HSAs Moving to HealthEquity
HealthEquity announced it has entered into a definitive agreement with Fifth Third Bank to transition custodianship of Fifth Third’s HSA portfolio to HealthEquity. The definitive agreement contemplates a $60.8 million dollar purchase price for a transfer of approximately 149,000 current HSA members and their approximately $477.0 million of HSA assets.
Rubio, Sinema, Colleagues Introduce Bipartisan Bill Increasing Accessibility of Home Care for Seniors
U.S. Senators Marco Rubio (R-FL), Kyrsten Sinema (D-AZ), Rob Portman (R-OH), and Tom Carper (D-DE) introduced the Homecare for Seniors Act, which would allow seniors to use HSA funds for home care expenses, saving seniors money, providing relief to family caregivers, and empowering seniors to remain in their own homes.
Health Savings Accounts Often Overlooked as a Financial Strategy For Building Personal Wealth
Many experts have praised HSAs for providing a triple tax break. Money is deposited pretax, can grow tax-free and is not taxed when it is spent, as long you as the expenses are eligible. During the pandemic, they have become an important way to save for unexpected healthcare costs. But for those graduating from college and beginning a new career, HSAs also can be the first key to accumulating wealth, according to a new article by Greg Geisler, clinical professor of accounting in the Indiana University Kelley School of Business.
2020 Investment Balance Trends in HSAs
HSA investments have grown rapidly in recent years, as more account holders invest and existing investors grow their balances. At the end of 2020 nearly $24 billion dollars were invested, accounting for roughly 29% of total HSA assets (up from 24% at the end of 2019). We take a look at HSA investment balance trends through 2020.