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CFPB releases report on costs of HSAs

On May 1, the CFPB released a report on health savings accounts (HSAs). The CFPB reported that consumers owned 36 million HSAs in 2023, and these HSAs held over $116 billion in assets – a 500 percent increase over the past decade. The CFPB believed this growth was likely due to HSAs’ tax-advantage status. According to the CFPB, HSAs differ from other healthcare spending accounts in ways that can “present increased costs, primarily in the form of fees and low interest rates.” The CFPB reported, for example, that suppliers of HSAs charged various fees, including monthly maintenance fees, paper statement fees, outbound transfer fees, and account closure fees. In the report, the CFPB indicated that the three largest HSA suppliers charge monthly fees at or around $4. Some suppliers reportedly did not make these fee schedules available publicly, and the fee responsibility varied between the company and the individual. On switching costs, one company charged a $20 outbound transfer fee for moving funds to a different HSA account. On closing costs, some companies charged a $25 account closure fee. The CFPB believed these “exit fees” were uncommon in deposit accounts. There were also delays in the transfer of funds from two to eight weeks. On other fees, the CFPB found some suppliers charge paper statement fees and ATM transaction fees.

CFPB Director, Rohit Chopra, released a statement with the Bureau’s report. In it, Director Chopra described the “captive consumer” model where consumers are often given an HSA automatically that better meets the needs of the employer than those of the consumer.

Federal Issue HSA CFPB Fees