Assets in health savings accounts (HSAs) climbed to $146 billion in 2024, with an 18% year-over-year increase, according to new data out today from Morningstar.
The investment analyst’s latest Health Savings Account Landscape Report notes that the tax benefits associated with HSAs, along with widespread adoption of high-deductible health plans (HDHPs), has accelerated growth among the savings vehicles.
Growing adoption of HDHPs has coincided with HSA asset growth, Morningstar reports. According to the findings, the percentage of workers in employer-sponsored medical insurance plans that have elected HDHPs increased from 7% in 2006 to 32% by the end of 2024. In that same timeframe, HSA assets rose to $146 billion from close to $5 billion about 20 years ago.
“In nearly a decade of research, we’ve seen the HSA industry mature considerably as more individuals take advantage of the powerful tax advantages and long-term savings potential these accounts offer,” said Greg Carlson, senior manager research analyst at Morningstar, in a statement.
Morningstar reports how recent legislation is likely to drive additional participation in HSAs. The One Big Beautiful Bill Act, passed in July, is expected to broaden HSA eligibility to now include those covered under certain health plans. Morningstar expects this expansion to stretch the number of HSA participants “by three to four million.”
HSA provider rankings
Other drivers include innovations in artificial intelligence technologies. Morningstar assessed HSA providers by spending and investment account offerings and found that many plan to invest in the technology to “enhance users’ online experience and provide participants with more personalized data and recommendations,” the report stated.
According to Morningstar, just four providers—Fidelity, HealthEquity, HSA Bank, and Saturna—earned “Above Average” assessments or better across both spending and investment account rankings. HSA providers were tiered for best practices with spending accounts, which included whether the provider offered no ongoing maintenance fees; competitive interest rates on account balances; few or no additional fees; and whether the provider had FDIC insurance on the spending account.
For investment accounts, providers were ranked on whether investment menus covered core areas and limited overall and volatile or niche strategies; investment options that earned Morningstar Medalist Ratings of Bronze or better; low fees; and whether no minimum balance in a spending account was required prior to investing.
Fidelity cleared the top spot, receiving a “High” assessment for “transparent, low-cost pricing, no investment minimums, and the highest available interest rate among the providers evaluated,” wrote Morningstar.
Bank of America and Optum received “Below Average” scores for spending accounts, with Optum receiving an “Average” score for investment accounts while BoA earned “Above Average.”
A full list of Morningstar’s assessments can be found below.
| HSA Provider | Spending Account Overall Assessment | Investment Account Overall Assessment |
| Associated Bank | Average | Above Average |
| Bank of America | Below Average | Above Average |
| Fidelity | High | High |
| First American Bank | Above Average | Average |
| HealthEquity | Above Average | Above Average |
| HSA Bank* | Above Average | Above Average |
| Lively | Above Average | Average |
| Nuesynergy | Average | Above Average |
| Optum | Below Average | Average |
| Saturna | Above Average | Above Average |
| UMB | Above Average | Average |
| *HSA Bank is Morningstar, Inc.’s HSA plan provider. | ||