Morningstar, Inc. (Nasdaq: MORN) has released its ninth annual Health Savings Account (HSA) Landscape Report, providing an in-depth analysis of industry trends and evaluating 11 leading HSA providers on their suitability as both spending accounts for current medical costs and long-term investment vehicles.
The report highlights significant growth in HSA assets, which reached $146 billion in 2024, marking an 18% year-over-year increase. This growth is primarily attributed to the attractive tax benefits of HSAs and the widespread adoption of high-deductible health plans (HDHPs). Further expansion is anticipated with the enactment of the One Big Beautiful Bill Act in July 2025, which is projected to broaden HSA accessibility to an additional three to four million participants. Rising contribution limits are also enhancing the appeal of these accounts.
According to the report, Fidelity continues to lead the industry, earning a “High” assessment for both its spending and investment account offerings. The company distinguished itself through transparent, low-cost pricing, the absence of investment minimums, and offering the highest available interest rate among the evaluated providers. Overall, only four providers—Fidelity, HealthEquity, HSA Bank, and Saturna—achieved “Above Average” assessments or better across both spending and investment accounts, indicating a broader opportunity for industry improvement in transparency and ease of use.
Technological advancements are expected to support future improvements within the HSA industry. Several provider executives indicated increased investment in artificial intelligence (AI) to enhance the online user experience and deliver more personalized data and recommendations to participants.
Greg Carlson, senior manager research analyst at Morningstar, commented, “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. Progress is uneven, however, with some major providers still falling short in meeting investor needs. Our ratings shine a light on firms that prioritize transparency, usability, and true investor stewardship, helping people better manage the rising costs of healthcare.”
The report emphasizes that HSAs offer substantial tax advantages, surpassing those of 401(k)s, IRAs, and 529 plans. Contributions are tax-deductible, and growth, dividends, and interest are tax-exempt. Withdrawals for qualified medical expenses are also tax-free.
Morningstar’s assessments for the providers included the following: Fidelity received “High” for both spending and investment accounts. HealthEquity, HSA Bank, Saturna, UMB, First American Bank, and Lively all received an “Above Average” for their spending accounts. For investment accounts, Associated Bank, Bank of America, HealthEquity, HSA Bank, Optum, Saturna, and UMB all received an “Above Average” assessment. Associated Bank and Nuesynergy received “Average” for their spending accounts, while First American Bank, Lively, and Nuesynergy also received “Average” for their investment accounts. Bank of America and Optum were assessed as “Below Average” for their spending accounts. (Note: HSA Bank is Morningstar, Inc.’s HSA plan provider.)
Morningstar, Inc. is a leading provider of independent investment insights globally, offering products and services for individual investors, financial advisors, asset managers, retirement plan providers, and institutional investors. As of June 30, 2025, its investment advisory subsidiaries managed approximately $352 billion in assets under management and advisement (AUMA). The company operates through wholly- or majority-owned subsidiaries in 32 countries.
