HealthEquity purchases Ohio bank’s $477M HSA portfolio

Draper-based HealthEquity Inc., the largest independent health savings account (HSA) custodian in the U.S., has agreed with Fifth Third Bank, National Association of Cincinnati to transition custodianship of Fifth Third’s health savings account portfolio to Health-Equity.

The agreement sets a $60.8 million purchase price for a transfer of approximately 149,000 current HSA members and their approximately $477 million in HSA assets. The agreement includes a mechanism to adjust the purchase price based on the amount of HSA assets actually transferred at the time of closing of the transaction.

“We are eager to welcome Fifth Third HSA members and employers to HealthEquity with remarkable ‘Purple’ service from HSA experts and the industry’s leading platform for connecting health and wealth,” said HealthEquity’s CEO Jon Kessler

“HealthEquity has a culture and dedication to taking care of its customers,” said Tim Spence, president of Fifth Third Bancorp. “We believe this transition is the best path forward for our HSA members to maintain the highest quality of delivery in services now and in the future.”

The transition of custodianship of Fifth Third Bank’s HSA portfolio to HealthEquity, which will also entail a transfer of the underlying assets held in the HSAs, is subject to regulatory approval and satisfaction of other customary closing conditions.

HealthEquity and its subsidiaries administer HSAs and other consumer-directed benefits for our more than 12 million accounts in partnership with employers, benefits advisors and health and retirement plan providers.