BOSTON–(COMMERCIAL THREAD) – The COVID-19 pandemic underscores the importance of health care benefits for employers and employees, many of whom are overwhelmed by rising health care costs and the complexity of health care decisions. health. Today, Fidelity Investments® – a diversified financial services company and leader in the creation of dynamic employee benefits programs – announces the continued growth of its health insurance business, driven by the needs of its clients:
- Health savings account (HSA): Fidelity has helped nearly 2 million people manage their savings and pay for their health care costs. These 1.76 million funded HSAs represent a growth of 19% from last year, resulting in total assets of $ 10.2 billion (52% increase)1. There has also been a growth in assets held by Fidelity HSA® owners who are invested (42%).
- Benefits for digital health: Fidelity Health and Welfare Benefits Administration helps employers provide healthcare advice and support. Committed to creating integrated digital experiences, the company introduces the new Fidelity Health app. The app allows employees to seamlessly manage their health needs on the go, from finding suppliers on the network, and understanding coverage to accessing digital ID cards. Those who have a Fidelity HSA through their employer can view balances, transactions, and contributions, as well as scan products to see if they are eligible for the HSA. The client pilot begins later this month.
“The pandemic has further strengthened the undeniable link between a person’s health and their finances,” said Jim MacDonald, group leader of healthcare at Fidelity Investments. “People are more secure when they are both financially stable and feel confident about dealing with a potential health problem. We focus on the benefits for digital health; From our industry-leading health savings accounts to expanding and piloting new offerings, we help individuals manage spending, plan retirement spending, and navigate health events at all stages of their lives. life.
Fidelity Health Care digital solutions – Improving access on the go
The Fidelity Health app will allow employees to plan, track and pay healthcare expenses and view flexible HSA and healthcare expense account balances, recent transactions and contributions. Initially in a customer pilot project, the free Fidelity Health app will be available on iOS this spring and Android ™ in winter 2021 for employees of organizations receiving treatment benefits managed by Fidelity.
“The Fidelity Health app is just one of the ways we are investing in our digital capabilities and creating personalized experiences – providing our employer clients with the digital health care benefits their employees expect and demand so they can “They can better navigate their healthcare journey,” said Tom McCarthy. , Digital Health Experience Manager, Fidelity Investments. “Data-driven insight informs our strategy to improve the customer experience in managing healthcare costs and benefits. ”
The industry leader of Fidelity2 HSA helps manage costs today while investing for tomorrow
Fidelity offers HSAs to its employer clients and, in the past year, has seen growth of 31%, adding 265 new employers. To make HSAs more accessible, Fidelity’s retail offering is available to anyone with an HSA-eligible health plan or with an existing HSA they wish to transfer. Fidelity HSA retail saw 136% year-on-year growth in assets3 – further demonstrating an increased interest in saving and investing in health care costs. In January 2020, Fidelity launched its HSA for Financial Intermediary Clients to help advisors meet the growing demand from their clients to save and invest in their long-term well-being; it is currently used by approximately 750 clearing and custody client companies.
“Whether it’s at home taking care of a family, commuting to a workplace as a critical worker, or working in a makeshift office at home, we’ve all worked hard this year. And with two things in mind – our health and our finances – it is increasingly important that our money work just as hard, ”said Begonya Klumb, head of health savings accounts, Fidelity Investments. “We’re excited to see more HSA customers investing their money to help it potentially grow. We continue to educate about this benefit as it is about the industry’s “secret power” in managing healthcare spending.
As a leader in employee benefits, retirement savings and brokerage – Fidelity’s strength lies in its diverse services, which ultimately help the individual. The Fidelity HSA exemplifies this commitment to the customer, and the retail offering has been rated Morningstar’s “Best All-Round HSA for Individuals” with high ratings as an expense and investment account.4. Additionally, the Fidelity HSA for Advisors received the WealthManagement.com Industry Award 2020 for New Product Development in the Asset Manager category.5.
To continue to make Fidelity HSA a valuable tool for managing healthcare savings and expenses, Fidelity presented these enhancements to employees:
- HSA contribution advance: Gives employees access to their annual HSA contributions on the first day of the year for unforeseen qualifying medical expenses. For employer customers who have chosen to offer this to their workforce, employees can choose to turn the feature on or off.
- Digital design makes fund selection easy: Fidelity Funds to Consider debuted in 2018, and the new digital interface makes it easier for clients to select funds. Almost 40% of invested accounts selected Fidelity Funds to consider (over $ 1 billion in assets).
- Fractional share trading: Fidelity offers a wide range of investment options for account holders, and fractional equity trading makes it easier for HSA clients to switch from saving to investing, regardless of the dollar amount they they dispose.
For more information, visit www.fidelity.com/hsa and see the Fidelity HSA 2021 fact sheet.
Additional Fidelity Resources for Managing Your Healthcare Journey
About Fidelity Investments
Fidelity’s mission is to inspire a better future and deliver better results for the clients and businesses we serve. With $ 9.9 trillion in assets under administration, including $ 3.8 trillion in discretionary assets as of January 31, 2021, we are focused on meeting the unique needs of a diverse set of clients: helping more than 35 million people to invest their own savings, 22,000 companies to manage employee benefit programs, as well as provide more than 13,500 institutions with investment and technology solutions to invest their own clients’ money. A private company for over 70 years, Fidelity employs more than 47,000 associates who are focused on the long-term success of our clients. For more information on Fidelity Investments, visit https://www.fidelity.com/about-fidelity/our-company.
Keep in mind that investing involves risk. The value of your investment fluctuates over time and you can make or lose money.
When identifying investment options to include in Fidelity HSA funds to consider, Fidelity only considered Fidelity open-end mutual funds and open-ended mutual funds offered by a universe. Limited of third-party fund companies that participate in proprietary marketing, engagement, and analytics. program with Fidelity for which they pay Fidelity an annual fee. The only third-party fund companies whose funds were eligible for this program were companies that generally have a reputation for generating the highest customer demand for their products through Fidelity’s customer channels and who paid Fidelity a level of sufficient remuneration for shareholder service. produced by Fidelity.
Fidelity Brokerage Services LLC, NYSE Member, SIPC
900, rue Salem, Smithfield, RI 02917
Loyalty Distribution Company, LLC
500, rue Salem, Smithfield, RI 02917
National Financial Services LLC, NYSE Member, SIPC,
200 Seaport Boulevard, Boston, MA 02110
1 Source: Fidelity record kept HSA data until January 31, 2021
2 Source: Morningstar, Best HSA Providers of 2020, October 14, 2020
3 Source: Fidelity retail HSA data through January 31, 2021
4 Source: Morningstar, Best HSA Providers of 2020, October 14, 2020
5 Source: WealthManagement.com, WM Industry Awards, September 2020
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