The Money Mustache Community
Learning, Sharing, and Teaching => Taxes => Topic started by: FrugalFisherman10 on April 25, 2017, 12:31:53 PM
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I have my HSA held with Payflex, the company that my employer sets it up with, and through dealing with them the last few months I have concerns just in general about their ability to continue as a business that holds onto thousands of my dollars.
It has led me to wonder what would happen in the event an HSA administrator like Payflex, Optum bank, etc. were to go under?
Does anyone have more intimate knowledge of how those dealings might occur? Would any amounts held with them be easily retrievable by the account holders?
This is probably a similar to concern to 'what if Vanguard gets nuked?' as JL Collins writes about.
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I have my HSA held with Payflex, the company that my employer sets it up with, and through dealing with them the last few months I have concerns just in general about their ability to continue as a business that holds onto thousands of my dollars.
It has led me to wonder what would happen in the event an HSA administrator like Payflex, Optum bank, etc. were to go under?
Does anyone have more intimate knowledge of how those dealings might occur? Would any amounts held with them be easily retrievable by the account holders?
This is probably a similar to concern to 'what if Vanguard gets nuked?' as JL Collins writes about.
Can you please elaborate on your concerns. I've had my HSA with Payflex for 2 yrs now and haven't had any problems with them, but I've never dealt with them other than making electronic deposits and then transferring my fund to investment account. They do charge me $7/mo between account fee and investment account fee. My old employer used to cover these fees, but now I am paying it until I figure out where to transfer my account.
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Payflex is owned by Aetna, which adds a substantial layer of certainty for me that they will be around longer term. That may also be why they feel difficult to interact with, unresponsive and generally shoddy. :)
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Just all of these things: "difficult to interact with, unresponsive and generally shoddy"
As a very small example..Have you ever tried to access their website from Google Chrome? Doesn't work for me.
Really?? Google Chrome??! After calling to talk to them they told me that i need to try Internet explorer.
My question wasn't really about Payflex in particular, more about HSAs as a whole. What happens if one that you have money with went under?
Does anyone have more intimate knowledge of how those dealings might occur? Would any amounts held with them be easily retrievable by the account holders?
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]Bumping this thread in case anyone has further info.]
What would happen in the event an HSA administrator like Payflex, Optum bank, etc. were to go under?
Does anyone have more intimate knowledge of how those dealings might occur?
Would any amounts held with them be easily retrievable by the account holders?
This is probably a similar to concern to 'what if Vanguard gets nuked?' as JL Collins writes about. http://jlcollinsnh.com/2012/09/07/stocks-part-x-what-if-vanguard-gets-nuked/ (http://jlcollinsnh.com/2012/09/07/stocks-part-x-what-if-vanguard-gets-nuked/)
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Cash should be insured by FDIC the same as other savings accounts, and investments should be covered by SIPC.
I've never had to use them, so I don't know how fast you can access your money in either case.
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Before you use any HSA I suggest that you research a company named Canopy Financial. The owners of Canopy stole the HSA money and bought Lamborginis and Arabian horses. It took years for account holders to recover their money.
Payflex is pretty safe because they are owned by Aetna but watch out for the small guys.
You can start your research here https://archives.fbi.gov/archives/chicago/press-releases/2012/two-former-canopy-financial-co-founders-sentenced-to-15-and-13-years-in-prison-for-75-million-investment-fraud-and-raiding-18-million-from-custodial-heath-care-expense-accounts-of-1-600-customers