Psst TPAs! Your HSA Tech Partner May Be Taking Your Revenue

Why Now Is the Time to Act

Interest rates are high, and banks are hungry for deposits. For now. No one can predict when rates will change, or by how much. That uncertainty makes this an especially important time for TPAs to look closely at how their partnerships are structured.

There are also costs to doing nothing. Every week that assets grow, it becomes harder to move them.

In my conversations with TPA leaders across the country, a clear pattern has emerged: many partnerships aren’t structured to deliver the revenue they should. One TPA recently shared that they were locked into a lower per-person-per-month fee with no revenue sharing on interest or interchange. When we ran the math together, the difference was staggering.

If you haven’t revisited your HSA revenue structure, now is the time. Every dollar you leave on the table compounds into a much bigger missed opportunity down the road.

Three Industry Secrets That Erode TPA Revenue

While HSAs create valuable opportunities for both consumers and TPAs, many programs include hidden costs that quietly drain profitability. Below are three common fee structures we see again and again—each one eroding account balances, weakening competitiveness, and limiting the revenue TPAs should be capturing.

1. HSA Account Closure Fees – Akin to Surrender Charges
Many HSA platform partners charge $25 or more just to move money out from under their administration. For a growing TPA, this creates a massive liability. The bigger you grow, the more expensive it becomes to leave. That’s by design—and it keeps you locked in.

2. Terminated Account Fees – Paying for Inactivity
Some providers charge former account holders $2–$4 per month just to keep an inactive account on the books. It’s essentially a subscription for nothing. It hurts consumers and erodes your ability to retain business and grow assets.

3. Investment Fees – Opaque and Costly
Many platforms quietly tack on high investment fees, often around 50 basis points, typically charged directly to the account holder. Over 20 years, those fees can strip thousands from a participant’s balance—and weaken your program’s value proposition. A lower-fee structure not only helps consumers, it makes your HSA offering more competitive.

Own Your Deposits, Own Your Fees

Hidden fees don’t just hurt consumers. They hurt your business. With rates where they are today, every basis point matters. If you don’t own your deposits, you don’t control your revenue.

At Elevate, we don’t lock partners in with exit fees or siphon off interest and interchange that should flow back to you. Our platform gives TPAs control over fee structures, transparency in revenue streams, and the flexibility to grow without handcuffs.

Now is the time to take ownership of your HSA program. Every month you wait, the harder—and more costly—it becomes to move.

Let’s talk. Book a demo.

About Keith Soranno

This blog was originally written by Keith in November 2023. He recently updated it to reflect today’s economic environment and recent conversations with industry leaders.

Keith brings extensive experience in employee benefits and financial services to his role as EVP of Sales at Elevate. He combines expertise in solution selling, partnerships, and business development with a passion for creating strategic solutions that deliver lasting value for client partners.

Follow Keith on LinkedIn.