Contributor, Benzinga
November 16, 2022

A Health Savings Account (HSA) permits you to set money aside to pay for approved medical expenses. You may be able to minimize your overall healthcare costs by using untaxed HSA cash to pay for copayments, coinsurance, deductibles or other health insurance costs.

Generally speaking, HSA funds cannot be used to pay insurance premiums. But, those who have enrolled in a HDHP (high deductible health plan) can use these accounts to manage health care expenses not covered by their insurance policy.

If you want to know how to find the best HSA providers to match with your health plan, keep reading.

The Best HSA Providers

The best HSA administrators have excellent ratings for financial strength, customer service, claims service, plan pricing, policy offers, coverage benefits and provider selection. The best health savings account provider for you depends on your healthcare needs. To help you in your search, Benzinga has created a list of the top HSA plans and administrators.

HealthEquity Inc.

HealthEquity Inc. (NASDAQ: HQY) has been in business since 2002 and features Vanguard investment funds through The Vanguard Group Inc. There is no minimum investment. Funding, maintenance and investment fees vary. Managing your account online is easy with 24/7 online support with a live representative. The website also offers several investment education resources.

Here are the pros and cons with HealthEquity HSAs:

No minimum investmentHSA maintenance fees can be as much as $36 per year
Medical debit card for easy payment0.25% required annual investment fee
Convenient mobile app
Vanguard investment options with a low 0.18% funding fee


Lively began offering no-fee health savings accounts in 2016 with no minimum cash balance required. You can fund your account with a one-time or recurring transfer. Lively also allows you to monitor your account activity online. You can access several investment options, including TD Ameritrade and Devenir HSA guided portfolio. You can also allow your financial adviser to access your portfolio.

Here are some of the pros and cons of an HSA with Lively:

No feesNew company (only established in 2016)
Several investment options, including TD AmeritradeHSA-guided portfolio by Devenir has a 0.5% annual fee
Handy mobile app
Convenient debit card to pay medical expenses
No minimum investment

HSA Bank

HSA Bank is an account administrator, offering HSAs since 1997. With the HSA Bank account, you can appoint multiple family members to oversee funds, add money and pay health expenses for your family. You can manage your account, make a payment, deposit funds through your mobile device and more through your online account.

Shared account accessShort-term investments only earn minimal interest
Visa debit card to pay medical expenses
Useful mobile app
Easily manage your account online

Fidelity Investments Inc.

Fidelity was organized in 1946. It offers several investment options, including Fidelity HSA, Fidelity Health Savings Fund (FHLSX) and Fidelity Health Savings Index Fund (FHSNX). The company offers several low-cost HSA investment options focused on long-term investment growth. There are no account creation or maintenance fees, and it is easy to manage your account through the online platform.

Fidelity HSA pros and cons are listed below: 

No account creation or maintenance feesVarying funding expenses apply
No minimum investmentExpenses ratio to investment options can be as high as 1.03%
Debit card to pay for healthcare costs
Several low-cost HSA investment options


Further has been in business since 1989 and offers HSAs geared toward employers. Further offers employers HSA account management assistance for HSAs, flexible spending accounts (FSAs), transportation reimbursement accounts (TRAs), dependent care assistance programs (DCAPs) and other account types. Further offers investment options for as much as 0.7%. You can transfer your investment to a Charles Schwab Corp. (NYSE: SCHW) account once the balance reaches $1,000 or more. You can manage your account through the online website or mobile app.

Account management assistance for employersAnnual investment fee of $18 for Charles Schwab accounts
High-return investment options, including Charles SchwabPricing for employers who open accounts for employees is unclear; you have to call for a quote
Easy-to-use mobile app
Both individuals and employers can open an HSA account

Benefits of a Health Savings Account

For most people, the main advantage of a health savings account (HSA) is the chance to save money on taxes. An HSA account is a tax-advantaged fund, meaning its owners are entitled to certain tax benefits. For example, whether or not you itemize your deductions, you can claim a deduction for your HSA payments on your tax return. If someone other than your employer contributes to your HSA, you can receive a tax deduction.

Covers medical expenses: Various medical, dental, and mental health services are eligible. IRS Publication 502, Medical and Dental Expenses, explains them fully.

Anyone can contribute: You, your employer, a family member or anybody else can contribute to your HSA. But the IRS has limits.

Adults 55 or older can add a $1,000 "catch-up" contribution to the 2021 limit of $3,600 per person and $7,200 per family. This year, the cap will be $3,650 for individuals and $7,300 for families (approximately 1.4%). The catch-up contribution amount for 2022 is unchanged.

Contributions are pretax: HSA contributions are usually deducted from your paycheck pretax. As a result, they are not part of your gross income and are not subject to state income taxes. Most states exempt HSA contributions from state income taxes.

Tax-free earnings: Interest and any earnings on HSA accounts are tax-free. Most HSA accounts earn less than 0.1% interest.

Triple-tax benefits: An HSA, while offering tax-free contributions, also offers tax-free growth and tax-free withdrawals.

Funds roll over: Money left in your HSA at the end of the year rolls over. This is unlike flexible spending accounts that can only be carried over up to $550 or 2.5 months.

The account is portable: Whether you change health insurance coverage, jobs or retire, your HSA funds remain available for future eligible medical expenses. Your HSA is a personal bank account where you determine how to use the funds.

Drawbacks of a Health Savings Account

The major disadvantage of an HSA is a high deductible health insurance plan. A deductible is the amount you pay annually before receiving insurance benefits. You must pay your deductible before your insurance plan covers your medical expenses. You'll have to pay for doctor visits, treatments and prescriptions until your deductible is met.

The difficulty of saving: Some individuals find it hard to save for an HSA and may not get medical care when they need it because they don't want to use their HSA funds.

You pay income tax on nonqualifying expenses: If you use HSA funds for nonqualified costs before age 65, you'll face taxes plus a 20% penalty. You'll owe taxes but not the penalty after 65.

Recordkeeping can be difficult: You must keep track of your receipts to confirm you used your HSA withdrawals for eligible medical costs. This is required if the IRS audits you.

Compare Health Insurance

To help you find the best health insurance options, Benzinga compiled a list of the top providers for you to consider. Look through the list provided below to begin your search for health insurance.

  • securely through Blue Cross Blue Shield Health Insurance's website
    securely through Blue Cross Blue Shield Health Insurance's website
    Best For:
    Nationwide coverage
    Read Review
  • securely through Sidecar Health Access Plan's website
    securely through Sidecar Health Access Plan's website
    Best For:
    No enrollment period health insurance
    Read Review

    Plans referred to above are excepted benefit fixed indemnity insurance products marketed and administered by Sidecar Health Insurance Solutions, LLC and underwritten by Sirius America Insurance Company or United States Fire Insurance Company, depending on the state. As an excepted benefit plan, it does not provide comprehensive/major medical expenses coverage, minimum essential coverage, or essential health benefits. You cannot receive a subsidy (premium tax credit and/or cost-sharing reduction) under the ACA in connection with your purchase of such an excepted benefit fixed indemnity insurance plan. Also, the termination or loss of this policy does not entitle you to a special enrollment period to purchase a health benefit plan that qualifies as minimum essential coverage outside of an open enrollment period. Coverage and plan options may vary or may not be available in all states.

  • Best For:
    Access to Kaiser medical specialists
    Read Review
  • Best For:
    Same day coverage available
    Read Review

Buy Into HSA Accounts Today

Because a health savings accounts can help you pay for health care expenses, you can get more out of your health insurance policy. These health reimbursement accounts are perfect for those who want to enjoy the tax advantage they provide, the account holder can invest these funds, savings rates are competitive and health benefit plans tend to dovetail well with these accounts. For more help finding an insurance plan or learning about HSA providers, you can visit Benzinga at any time.

Frequently Asked Questions


What is an FSA vs HSA?


Both HSAs and FSAs provide tax benefits. HSAs, however, are more flexible. They enable you to save money in the short term by reducing your tax liability. They enable you to save money in the long term by rolling over any unused funds in any given year and accumulating them as savings over time. HSAs necessitate the use of a high-deductible insurance plan. Employers often offer FSAs, and funds typically do not roll over completely from year to year.


Who is eligible for an HSA?


According to the IRS, you must have a high-deductible health insurance plan or a plan with a deductible of at least $1,400 for individuals or $2,800 for families to be eligible for an HSA.


Can I withdraw funds from HSA?


Yes, you can withdraw funds whenever you choose from an HSA, but if you withdraw funds for something other than approved medical expenses, you will be taxed at your ordinary tax rate, plus pay a 20% fee from the IRS.