Author Topic: Optum HSA just went to Admiral  (Read 5021 times)

boarder42

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Optum HSA just went to Admiral
« on: April 10, 2015, 06:13:04 AM »
Just got an email yesterday that Optum Health Bank will be switching all funds to admiral shares.  Lowering my expense ratio on Vangaurd S&P 500 index by 250% from .17 to .05%. 

Not really anything bad ass i did... but still badass nonetheless.

sb_NoVA

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Re: Optum HSA just went to Admiral
« Reply #1 on: April 18, 2015, 09:23:02 AM »
That's great news.  Is it admiral after you have $10,000 in S&P 500, or is it admiral from 1st dollar?

Also, any changes to minimum balances required in cash accounts before you can start investing?  Can you post contents of that email, I couldn't find it in my Inbox.

LivingTheory

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Re: Optum HSA just went to Admiral
« Reply #2 on: April 18, 2015, 09:30:51 PM »
Not OP, but it's Admiral for any balance.  Vanguard's usual $10,000 threshold doesn't apply.

I'm required to keep an amount equal to my annual deductible in cash, any excess can be transferred to investments.

Attached is a summary of the referenced changes, effective April 24th.

ThreadPacifist

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Re: Optum HSA just went to Admiral
« Reply #3 on: April 18, 2015, 09:31:48 PM »
That's great news.  Is it admiral after you have $10,000 in S&P 500, or is it admiral from 1st dollar?

Also, any changes to minimum balances required in cash accounts before you can start investing?  Can you post contents of that email, I couldn't find it in my Inbox.

If I read it right, I don't believe there is a minimum balance required. Here's the contents of the email.

We are excited to announce that we are changing to Admiral and Institutional Class Shares on some of the mutual funds in our Standard HSA offering. This change provides you with the following benefits:

A competitive offering of mutual fund options
Lower expense ratios than investor class shares
There is no action required by you; however, you should take note of the following important dates. During the week of April 20, 2015, the following investment transactions will be impacted during this transition:
Sells/transfers out of the six identified funds:
From April 22 at 4 p.m. ET until approximately 12 p.m. ET April 24, account holders with money invested in these funds will be unable to sell these specific funds. During this time, these funds will not be visible on the website.
Buys/transfers into the six shares with new classes:
Account holders will see the new fund options April 23 at 4 p.m. ET. Balances in a corresponding investor class share will not be visible until the transition is completed at approximately 12 p.m. ET April 24.
Below is a table outlining the new share class for your reference:

Current Share Class
Mutual Fund Family   Mutual Fund Name   Share Class   CUSIP   Ticker Symbol   Expense Ratio
Vanguard   Vanguard S&P 500    Investor   922908108   VFINX   0.17
Vanguard   Vanguard Small Cap    Investor   922908702   NAESX   0.24
Vanguard   Vanguard Mid Cap      Investor   922908843   VIMSX   0.24
Vanguard   Vanguard Wellington    Investor   921935102   VWELX   0.26
Vanguard   Vanguard Equity-Income    Investor   921921102   VEIPX   0.30
Neuberger Berman   Neuberger Berman Genesis    Investor   641224100   NBGNX   1.01
New Share Class
Mutual Fund Family   Mutual Fund Name   Share Class   CUSIP   Ticker Symbol   Expense Ratio
Vanguard   Vanguard S&P 500    Admiral   922908710   VFIAX   0.05
Vanguard   Vanguard Small Cap    Admiral   922908686   VSMAX   0.09
Vanguard   Vanguard Mid Cap      Admiral   922908645   VIMAX   0.09
Vanguard   Vanguard Wellington    Admiral   921935201   VWENX   0.18
Vanguard   Vanguard Equity-Income    Admiral   921921300   VEIRX   0.21
Neuberger Berman   Neuberger Berman Genesis    Institutional   641233200   NBGIX   0.84

sb_NoVA

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Re: Optum HSA just went to Admiral
« Reply #4 on: April 18, 2015, 10:29:59 PM »
Thanks.  This is great news indeed.  Slowly, but gradually, things have been getting better in HSA marketplace.  I have eAccess account with Optum.  I'm required to keep $2k in cash and they charge me $3/month fee on investment account.  If only there was a way to put those idle 2000 employees to work 😆

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boarder42

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Re: Optum HSA just went to Admiral
« Reply #5 on: April 20, 2015, 06:20:47 AM »
yeah i hate the 3 dollar fee and the 2k that has to be liquid.  but oh well.  saving all that tax AND FICA is worth the small price

sb_NoVA

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Re: Optum HSA just went to Admiral
« Reply #6 on: April 21, 2015, 08:00:53 PM »
That is true indeed.   Also, Optum gives you access to ODMAX.  It's is a famous emerging markets fund closed to new investors but available via Optum.  I prefer Active funds for Emerging markets and index funds for everything else.

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Million2000

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Re: Optum HSA just went to Admiral
« Reply #7 on: April 23, 2015, 07:04:30 AM »
Thanks.  This is great news indeed.  Slowly, but gradually, things have been getting better in HSA marketplace.  I have eAccess account with Optum.  I'm required to keep $2k in cash and they charge me $3/month fee on investment account.  If only there was a way to put those idle 2000 employees to work 😆

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I just switched from eAccess to eInvestor which only has an investment threshold of $500. The thing I've learned about Optum is that the features and fees are not standard for every user, it apparently depends on the company you work for or have insurance through. Last year I switched in the middle of the year to a low deductible insurance plan (I got married), all of a sudden they changed the requirements for eAccess to where I had to have $5,000 in cash or else I would be charged a fee where previously I wasn't. At the beginning of this year I switched back to a high deductible plan (and started making contributions again), lo and behold the $1 fee went away.

The thing about the eInvestor account is that they not only charge $3 a month for cash balances less than $5,000, but also a $2.50 to invest, where previously with eAccess there was only a $3 fee a month to invest. So bottom-line is that you pay $2.50 extra each month to invest $1,500, that's 2%. While this is stupid, I figure $1,500 invested in the S&P 500 can earn more than 2% over time.

Overall my biggest complaint about HSAs in general, and in Optum in particular is the crazy stupid fees they charge for being what amounts to a glorified bank and brokerage account. I read recently about the record profit that Optum made for UnitedHealthcare, it makes me cringe thinking that my fees are helping them do this, but the FICA taxes saved alone more than paid for the fees. What's funny is that employees admit the fees are very high. When I called them to ask about the increase in eAccess fees last year, they stated plainly that I should move the money out of the account until I switched back to a high deductible health insurance plan. They must not pay the customer service reps very well...

sb_NoVA

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Re: Optum HSA just went to Admiral
« Reply #8 on: April 23, 2015, 07:31:05 AM »
I couldn't agree more.  Just called them yesterday and they said same thing about eAccess and eInvestor.  Their reps were very candid about high fees.  Well, I use Optum to buy ODMAX.  It's a popular emerging markets fund and closed to new investors (optum is one of very few ways left to invest in this fund).  I don't believe indexing works very well in emerging markets as they tend to be very inefficient.  With Vanguard Admiral funds available now, I might just switch to one of those.  We will see. 

boarder42

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Re: Optum HSA just went to Admiral
« Reply #9 on: April 23, 2015, 08:17:42 AM »
I couldn't agree more.  Just called them yesterday and they said same thing about eAccess and eInvestor.  Their reps were very candid about high fees.  Well, I use Optum to buy ODMAX.  It's a popular emerging markets fund and closed to new investors (optum is one of very few ways left to invest in this fund).  I don't believe indexing works very well in emerging markets as they tend to be very inefficient.  With Vanguard Admiral funds available now, I might just switch to one of those.  We will see.

Optum has always had vangaurd funds they now just have the admiral version of the funds.

sb_NoVA

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Re: Optum HSA just went to Admiral
« Reply #10 on: April 30, 2015, 08:15:41 PM »
Just wanted to post a quick update - I noticed I'm not being charged $3 investment fee.  I have eAccess.  I think my employer is picking up these fees.  I don't want to call anyone to check.  Incase you haven't, you should try to email your HR department to see if they would pick up the fees for Optum and encourage other employees to do the same.