Morningstar Publishes 2025 Health Savings Account Landscape With New Provider Assessments and Market Insights

Morningstar, Inc. (Nasdaq: MORN), a leading provider of independent investment insights, today published its ninth annual Health Savings Account (HSA) Landscape Report, offering an in-depth analysis of industry trends and assessments of the top HSA providers available to individuals. The report evaluates 11 providers on two use cases: as spending accounts for current medical costs and as long-term investment accounts.

The report delves into how new developments – such as the passing of the One Big Beautiful Bill Act and advancements in artificial intelligence – could have meaningful impacts on the HSA industry. Additionally, fee competition remains a key factor in driving down costs for investors and expanding the range and quality of HSA offerings.

“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. “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’s key takeaways and full provider assessments are below.

Key Takeaways

• HSA assets grew to $146 billion in 2024, marking an 18% year-over-year increase. The attractive tax benefits of HSAs and the widespread adoption of high-deductible health plans (HDHPs) continue to drive growth.
• The enactment of the One Big Beautiful Bill Act in July 2025 will broaden the accessibility of HSAs and could expand the number of participants by three to four million. Rising contribution limits are also strengthening the appeal of HSAs.
• Fidelity maintains its position as industry leader, receiving a High assessment for its spending and investment account offerings. It has distinguished itself with transparent, low-cost pricing, no investment minimums, and the highest available interest rate among the providers evaluated.
• Just four providers – Fidelity, HealthEquity, HSA Bank, and Saturna – earned Above Average assessments or better across both spending and investment accounts, signaling opportunity for broader industry improvement in transparency and ease of use.
• Advancements in AI could support industry improvements, as several provider executives indicated increased investment in the technology to help enhance users’ online experience and provide participants with more personalized data and recommendations.
• HSAs offer significant tax advantages – better than 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.

Assessments