Wespath has communicated in recent mailings that the custodian for the HealthFlex HSA investments will transition from BNY Mellon to HealthEquity, effective May 21, 2020. Wespath partner WageWorks is still the benefit administer of the HSA, however the bank that manages the money is being transitioned for a better experience for the participant. This is an exciting transition because we believe it will provide a better user experience, including tools and education for participants and better reporting for Wespath and plan sponsors. Additionally, since HealthEquity had previously acquired WageWorks, we expect management of the HSA relationship to improve, as Wespath will have a direct relationship with HealthEquity.
Participants will receive a new HealthEquity debit card to use with their HSA only. This will not be a stacked card with any HRA or FSA balances. Wespath has requested continuation of a stacked card, but unfortunately, that is not available with this new arrangement.
The HealthEquity website for managing HSAs will be linked via single sign on to the current WageWorks page via the HealthFlex/WebMD portal. We expect the user experience to be far better than the current BNY site that links from the WageWorks page. In the future (early 2021), we hope to be able to migrate entirely to the HealthEquity page to manage all accounts, but for the time being, they will exist in parallel.
HSA participants have begun receiving a letter from BNY Mellon, notifying participants of the resignation and approximate timeline. Unless an individual wishes to move their BNY Mellon account balance to their own HSA custodian (not recommended), no action is required by participants.
Wespath will not be able to deposit plan funds, personal contributions, or excess premium credit into any HSA except the one managed by HealthEquity through WageWorks. We recognize that with market volatility, this may no longer feel like an ideal time to make this transition, particularly for the few (3%) accountholders who are currently investing their HSA balances. Unfortunately, we don’t have the authority to delay this transition. Wespath will follow the BNY Mellon communication with a letter to HSA plan enrollees within the next week to bring them comfort in this transition.
The transition timeline continues as followed:
Please note: No account activity will take place between May 15 and May 22. Reimbursement for claims incurred during this time can be filed on or after May 22.
- May 14—Last day to use WageWorks debit card for HSA expenses.
- May 20—Investments in WageWorks HSAs liquidated by BNY Mellon.
- May 21—Account balances transfer from BNY Mellon to HealthEquity.
- May 22—Funds available at HealthEquity, including the ability to select investment funds.
Here are a few additional details about the transition:
- No individual consent, action, or re-completion of the Customer Identification Program (CIP) is required.
- The full 2020 history will be transferred to HealthEquity so only one tax form will be received.
- There is no change to the $2/monthly low balance fee at this time.
Additional mailings that were sent to participants regarding this matter:
- May 1—a letter from WageWorks to those who have a limited purpose FSA or HRA tied to their current WageWorks debit card—reminding them to keep that card.
Please contact the Health Team with Wespath at (800) 851-2201 or WageWorks at (877) 924-3967 with any additional questions you may have.