Benefits Aggregator Hub Adds In-House HSA

Hub Retirement and Private Wealth, a division of Chicago-based Hub International Ltd., announced Tuesday the launch of an in-house health savings account for plan sponsors to offer participants.

The Hub HSA Investment Account will give Hub clients an HSA to save pre-tax dollars for medical expenses while keeping those funds invested in Hub-selected funds, the insurance and workplace benefits aggregator announced.

“There is a growing imbalance between the number of individuals saving for future healthcare expenses and the rising cost of healthcare in retirement,” Joe DeNoyior, president of Hub RPW, said in a statement. “With HUB HSA Investment Account, we are helping individuals, employers and partners simplify health and financial wellness decisions and drive stronger retirement outcomes.”

Workplace HSAs have seen rapid growth in recent years, as participants use them as tax-advantaged savings vehicles that can go toward qualified medical expenses. At the end of 2022, there were $104 billion in HSA assets held among 35.5 million accounts, a year-over-year increase of 6% for assets and 9% for accounts, according to the most recent data from Minneapolis-based HSA investment firm Devenir.

In the announcement, Hub positioned its HSA as helping to “bridge the retirement health care savings gap” for participants.

The investment account will work in partnership with HSA Bank, a health savings account administrator based in Milwaukee. The Hub RPW team will provide employers and employees access to the HSA and customized fund lineups, according to the announcement.

The four largest HSA providers, as of 2022, are HealthEquity, Optum, Fidelity Investments and HSA Bank, together accounting for two-thirds of the total HSA market, according to data from Morningstar.