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Health Equity HSA Mutual Fund Changes
Old 06-15-2013, 04:31 PM   #1
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Health Equity HSA Mutual Fund Changes

I have used Health Equity for my HSA for about 5 years. I recently received notification they were going to a "new, best-in-class" list of mutual funds. They would migrate my funds to the comparable new fund or I can make my own changes. The change is effective July 1.

I decided to compare the fees between the old and new funds. As I suspected, the fees on the "new, best-in-class" funds are higher. I have to agree that some of the returns are higher on the new funds but that can change at any time.

I listed the three funds I am currently invested in, old fees, and the new fees. I did not list the new funds because I can't get it formatted (and it didn't format like I wanted anyway!).

Old New Increase
Dodge & Cox Int Bond 0.43% 0.62% 44%
Dodge & Cox Foreign Large Blend 0.64% 1.22% 91%
Vanguard Large Blend 0.10% 0.95% 850%

Vanguard is gone from our list. New names such as Metropolitan West, Artison, Columbia. The Sunamerica Dividend fund actually has a 5.75% front end load and then a fee of 1.475%. Yikes!!! Time to find a new home for my HSA.

I wonder if Health Equity got bought. This is out of character for the company I have been dealing for the last 5 years.
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Old 06-15-2013, 05:15 PM   #2
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Maybe time for a new HSA provider. I use Patelco and some of the funds are from Vanguard.
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Old 06-15-2013, 05:17 PM   #3
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These guys offer Vanguard funds: Health Savings Account - HSA Administrators
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Old 06-15-2013, 07:34 PM   #4
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I actually talked to a rep. Their customer service is in Utah and their representatives are great. I forgot they have live phone support 24/7. I spoke to a really nice young man who said there had been a lot of calls asking about the new fund fees.

He quickly told me Health Equity wasn't getting the revenue from the fees. I told him I didn't care who got the money! I asked him if the company had been bought or if there was a new CEO because this change did not fit with how the company has been over the last 5 years. He said no big managerial changes had happened at the company.

I asked him if I was reading the prospectus correctly for the funds that were charging front loads. He said this question had been answered recently but he couldn't remember the answer because there was some twist to it. He said there were no costs to switch from old to new but I gave him a scenario of a purchase AFTER the conversion. He insisted I stay on hold so he could call his boss at home to try to answer my question immediately. His boss' phone went to voice mail so he almost begged me to please call back on Monday so he could give me the answer. He gave me his direct line.

I had forgotten how wonderful their customer service is. It seems the rep was truly pained his company was doing something that was making customers unhappy. I have enjoyed doing business with them but it's just not possible to stay with them with the crazy mutual fund fees.
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Old 06-15-2013, 07:36 PM   #5
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These guys offer Vanguard funds: Health Savings Account - HSA Administrators
This looks great!
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Old 06-15-2013, 07:42 PM   #6
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This looks great!
The only charge I pay is a $45 annual fee. Not great but worth it to me to get access to the Vanguard funds.
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Old 06-15-2013, 07:48 PM   #7
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The only charge I pay is a $45 annual fee. Not great but worth it to me to get access to the Vanguard funds.
I have only $12,000 in my account but $45 is .375% and that would be less than the huge fee increases even at this relatively low balance. Plus I thought I read it has first dollar investing. Health Equity makes me keep $2500 in cash. That was recently increased from $2000. Didn't like that change either.
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Old 06-15-2013, 07:54 PM   #8
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Plus I thought I read it has first dollar investing.
+1

Also, about half the 22 Vanguard funds available are Admiral shares.
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Old 06-16-2013, 11:17 PM   #9
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I love my HSA Bank HSA account, linked to TD Ameritrade.

I pay $2/mo for bank balance below $5,000, and an extra $3.50/mo for hte investment account, but my balance is such that the $5,000 invested in dividend stocks more than pays for that $5.50/mo total fees. No other annual fees than that. You can buy anything in the TD Ameritrade HSA account that you can in a regular 'retirement' account.
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Old 06-17-2013, 12:19 PM   #10
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I love my HSA Bank HSA account, linked to TD Ameritrade.

I pay $2/mo for bank balance below $5,000, and an extra $3.50/mo for hte investment account, but my balance is such that the $5,000 invested in dividend stocks more than pays for that $5.50/mo total fees. No other annual fees than that. You can buy anything in the TD Ameritrade HSA account that you can in a regular 'retirement' account.
+1 on HSA Bank and TDA

(no monthly fees though as my health plan covers those -- at age 65 when I can no longer contribute to the HSA, I assume I will have to pay those fees).
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