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October 30, 2006
Health Savings Account Opportunities for Financial Institutions
Thousands of companies nationwide will be offering health insurance plans that qualify for Health Savings Accounts to their employees this fall. Many of these employers are funding all or part of their employees’ HSAs. For banks and credit unions, this provides a great new opportunity to offer a Health Savings Account (HSA) program to their clients.
“Financial institutions that wish to offer HSAs in 2007 must get set up to offer HSAs now,” said Roy Ramthun, Senior Vice President for HSA Clearing. “They need to start marketing now, informing their business clients that the HSA can be set up and held locally at their bank or credit union. Banks and credit unions may not need to open an account until 2007, but they must begin contacting their customers to let them know they will be able to accept the accounts. Once these group HSAs are set up elsewhere, it is difficult to get the employer to change, so it is vital that financial institutions begin educating their customers now during the open enrollment period if they are to capture these HSA accounts. Each HSA is different, as no two people spend or save the same on their health care needs, but from the financial institution’s point of view it’s almost like opening another savings or checking account. It couldn’t be any easier.”
HSA Clearing’s turn-key HSA set up program for banks and credit unions can have them offering HSAs in a matter of days. The HSA monies can now be deposited locally to better benefit the community and their customers. Financial institutions that take advantage of their HSA set up program receive HSA website, HSA forms, Section 125 plans for employer payroll deductions, and the exclusive HSA Rx Card program with real time pricing, which can also be included for all the financial institution’s customers.
You can view a list of current HSA Administrators to see the potential.
Posted by Wiley Long at 08:35 AM | Comments (0)
October 27, 2006
Michigan Health Savings Account Owners to get New Cost Transparency Tools
In an effort to help Health Savings Account owners make more informed decisions regarding their health care, a company called Priority Health is bringing the first phase of cost transparency to Michigan. The first phase will provide common cost estimates for medical procedures, health services, and prescription drugs online.
After recently being recognized by the Michigan Association of Health Plans (MAHP) for its advanced Find a Doctor Tool, which enables users to find physicians by quality ratings, Priority Health is raising the bar again, presenting two new online tools that will further enable Health Savings Account owners to make informed decisions.
Priority Health’s Common Costs Tool provides cost estimates for more than 85 common procedures and health services, such as hospital/ER fees, imaging and radiology, labs and testing, medical supplies and equipment, physician office services, and therapy services. Also new is Priority Health’s Pharmacy Tool, which provides estimated costs for approved prescription drugs. Users can also search drugs alphabetically, by drug class and drug name. Priority Health members who log in can view their specific prescription drug costs according to their benefit plan.
“Priority Health has taken a significant first step in providing the community with greater information to assist them in making more informed health care decisions,” said Kimberly K. Horn, president and CEO for Priority Health. “Our members can now log on at www.priorityhealth.com and receive personalized benefit information, obtain prescription drug costs, find a doctor, and common costs for medical procedures and services.”
Engaging Consumers
According to Information Strategies, Inc., Consumer Directed Health Plan (CDHP) products such as Health Saving Accounts (HSA’s) are increasing in demand. Their research predicts fall enrollment of HSAs will exceed estimates, with total enrollment nationwide at 3.6 million by January 2, 2007. “As the demand for health savings accounts increases, and consumers take control of their medical spending dollars, there will be an increasing need for cost and quality information from hsa health plans,” said JoAnn Laing, president and CEO of Information Strategies. “Priority Health understands that consumers want cost and quality information in a format that is readily understood and can be acted upon.”
Learn how to get your own HSA at: http://www.health--savings--accounts.com
Posted by Wiley Long at 09:46 AM | Comments (0)
October 25, 2006
Health Savings Accounts Offer Different Healthcare Options
The end of the year is just around the corner and, as always, healthcare continues to be a critical issue for employers and employees alike.
With health care premiums escalating 73 percent since 2001, many business owners are turning to Health Savings Accounts (HSAs) paired with a High Deductible Health Plan (HDHP) to control costs, attract quality employees and compete effectively in the marketplace.
The reasons for their growing popularity are simple. HSAs help make health coverage more affordable, encourage more prudent use of health services and allow tax-free spending on a wide range of medical expenses.
Benefits to Employers
Whether you are the owner of a small or large business, the benefits are the same. HSAs work with a high deductible health insurance plan to:
Reduce your health care benefit costs
By offering an HDHP your premium costs may be 30 to 40 percent less than traditional health plans.
Control medical costs
You can make contributions to an employee’s HSA up to the annual limit - the lesser of the plan deductible or $2,700 for single coverage and $5,450 for family coverage.
Reduce taxes
Your contributions are excluded from your employee’s adjusted gross income and can be deducted as a business expense.
Trim administrative work
Following enrollment in an HSA, the custodian takes over record-keeping including IRS reporting and regulatory reviews, freeing up your staff for other tasks.
For a small business, a HDHP bundled with an HSA may be the difference between offering your employees health benefits or none at all.
Benefits to Employees
Your employees will see an equal, if not greater benefit in an HSA including:
Reduced insurance premiums: Insurance premiums are usually lowered 30 to 40 percent. Employees can use these savings to fund their HSA.
Tax benefits: Similar to an IRA/401k, contributions to an HSA are excluded from an employee’s gross income and grow tax-deferred. Withdrawals used for qualified medical expenses are tax free.
Portability: Employees own and manage their accounts and can take the funds with them should they leave your employment.
Flexibility: Unlike flexible spending arrangements, there are no "use it or lose it rules." Employees can save unused funds for use in later years.
Greater control over health care: Employees will take an active decision making role in their health care. They will be empowered to select a provider based on price and quality. Funds may be withdrawn from their account to pay for deductibles, co-insurance, dental and vision care, and other items including long term care (LTC) insurance.
Opportunity to supplement retirement income and save for medical expenses: Since the money in an HSA grows tax deferred, employees will have another opportunity to invest their funds to maximize their earning power. Once they are 65, they can withdraw funds for any non-medical purposes at ordinary income tax rates in addition to still being able to withdraw tax-free amounts for qualified medical expenses.
Next Steps: Employer Considerations
Overall, HSAs present new opportunities for employers interested in pursuing consumer-directed health plans. But the greatest hurdle will be a well-designed plan and educating your employees on the benefits.
A financial professional can help you develop a strategy to help increase enrollment rates. The biggest driver of HDHP/HSA adoption by employees is an employee match or contribution. Roughly one-third of employers who contribute to employee HSAs offer between $250 and $499, according to a survey by the Council of Insurance Agents & Brokers, with 18 percent offering $500 to $749 and 17 percent contributing $750 to $1,000.
Work with a financial professional on contribution amounts from flat dollars or percentages to a tiered approach who can also provide guidance on how to amend your 125 Cafeteria Plan to allow for pre-tax contributions. Employer contributions are subject to nondiscrimination requirements. In general, you must make comparable contributions for all employees in each coverage category (single coverage or family coverage).
While HSAs provide the opportunity to address the underlying problem of the affordability of health care coverage, the most significant difference in employee satisfaction will be to communicate the health benefits and encourage employees to take more control over their own health. You should select a custodian for your HSAs that provides strong communication programs and decision support tools.
Employees are given greater control at each stage of health care decision-making. That requires detailed information from the cost of health plans to information on health care providers to programs that track their medications and provide them with lifestyle and behavior choices that could impact their short- and long-term health.
While implementation and adoption of a new health care program is no small task, studies have shown that the level of employer commitment to promote healthy behavior and responsible financial management has a direct effect on the behavior of plan participants and how much money is saved in the HSA. Ultimately, employers will get out as much as they put in.
To learn more about HSAs, contact your business advisor or visit http://www.health--savings--accounts.com
Posted by Wiley Long at 07:19 AM | Comments (0)
October 24, 2006
Anthem Blue Cross Blue Shield Offering New Health Savings Account Plans to get Consumers More Involved
Anthem Blue Cross Blue Shield of New Hampsire recently announced to brokers and producers its plans for unveiling new consumer-driven health savings account insurance plans starting January 1, 2007.
About 560,000 people in the Granite State are covered by Anthem Blue Cross Blue Shield insurance plans. Anthem Health Plans of New Hampshire Inc. is a subsidiary of WellPoint Inc.
"Consumer-driven health savings account plans are getting a lot of airing today, because we think there is a need to increase the understanding of these products. They're not just high-deductible plans, they're not just cost shifting," said Lisa M. Guertin, president of Anthem Blue Cross and Blue Shield in New Hampshire.
"There needs to be a whole new way of getting people engaged in decisions about their health care and the cost of their health care," she said.
The luncheon session at the Capitol Center for the Arts included skits that demonstrated that the nation's largest Blue Cross-Blue Shield group has plans for people at every stage of their lives.
The new products include Lumenos Health Reimbursement Account, Lumenos Health Savings Account and Lumenos Health Incentive Account.
The plans pair medical savings accounts with financial incentives to promote wellness.
"These plans... are designed to engage people in healthy behaviors for those who are in the low risk or medium risk categories and then for those patients who are already in the high risk category and who aren't seeing their physicians regularly or aren't taking their medications properly, to really give them a health coach," said Dr. Elizabeth Malko, Anthem's medical director in New Hampshire.
Lumenos features online tools, including health assessment, linkage to a personal health coach, searchable provider directory, prescription tool, enhanced surgical decision-making and managing healthcare dollars.
Anthem Blue Cross Blue Shield also previewed its 360 Degree Health offering, which aims to significantly decrease the cost of the most at-risk members by 2010 and increase effectiveness of health and wellness programs for the remaining 80 percent. Under the program members have incentives for taking health assessments, round-the-clock access to a nurse line and disease management options.
The company also unveiled new supplemental Medicare programs for 2007. Nearly 200,000 New Hampshire residencies are covered by Medicare, the federal health insurance program for the elderly and disabled.
Also, pending Department of Insurance approval, Anthem is planning to introduce on Jan. 1 three new affordable health plans for individuals targeted to 20-somethings under the Tonik nameplate.
A previous health savings account-based plan, Anthem by Design, drew participation by only about 4 percent of Anthem's New Hampshire insureds, Guertin said.
"This is really a completely new animal, and we think many of the reasons purchasers had been hesitant to move to these type of plans are addressed in this offering," she said.
Anthem is quoting consumer-driven health plans for large employers now, with small groups beginning Nov. 1 and individuals Nov. 15.
Learn more about Health Savings Accounts at: http://www.health--savings--accounts.com
Posted by Wiley Long at 09:12 AM | Comments (0)
October 21, 2006
Humana Selects First Horizon Msaver to Administer Health Savings Accounts
Humana Health Insurance has selected First Horizon Msaver to administer Health Savings Accounts (HSAs) for its HumanaOne Individual Health Insurance customers.
Under the agreement, a person who purchases a HumanaOne HSA-qualified health insurance plan and chooses First Horizon Msaver to administer the HSA will be able to complete an application to open an HSA account and initially fund the account electronically in one online session. Once the account is opened, First Horizon Msaver will provide customer service through a privately labeled customer care center.
"We wanted to expand the number of HSA financial partners to give our customers more choice," said Humana's assistant treasurer, Walter Stark. "First Horizon Msaver had the combination of technology and customer service capabilities we were looking for to create a positive member experience."
E. Craig Keohan, president of First Horizon Msaver, said, "Our new partnership with HumanaOne furthers the continued growth of consumer-driven health care plans. The ability to offer an electronic platform to open, fund and integrate with one of the nation's leading insurance carriers demonstrates our ability to deliver a superior customer experience."
The joint program is set to roll out with HumanaOne HSA-qualified health plans issued beginning in fourth quarter 2006.
About First Horizon Msaver
First Horizon Msaver Inc. is a leader in the servicing of health savings accounts (HSAs) and is a member of the First Horizon National Corp. (NYSE:FHN) family of companies that provides financial services to business customers and individuals across the country. With first-to-market technology like electronic enrollment, banking online, online bill pay, investment options and a dedicated HSA customer care center, First Horizon Msaver is helping thousands of Americans get the most out of their tax-favored HSAs.
First Horizon companies have been recognized as some of the nation's best employers by AARP, Working Mother and Fortune magazines. First Horizon also was named one of the nation's 100 best corporate citizens by Business Ethics magazine.
About Humana Health Insurance
Humana Inc., headquartered in Louisville, Ky., is one of the nation's largest publicly traded health benefits companies, with more than 11 million medical members. Humana offers a diversified portfolio of health insurance products and related services -- through traditional and consumer-choice plans -- to employer groups, government-sponsored plans and individuals.
Over its 45-year history, Humana has consistently seized opportunities to meet changing customer needs. Today, the company is a leader in consumer engagement, providing guidance that leads to lower costs and a better health plan experience throughout its diversified customer portfolio.
Posted by Wiley Long at 11:14 AM | Comments (0)
October 19, 2006
Tax Benefits Health Savings Accounts offer Retirees
Health Savings Accounts, often thought to be for the young and healthy, can also be a tax-efficient way to save for the worrisome cost of retiree health care.
Health Savings Accounts enable consumers to invest pretax dollars in high-earning years and withdraw that money in retirement for out-of-pocket medical costs. Those costs can be steep for the growing number of retirees without corporate-sponsored retirement health insurance: Fidelity Investments estimates that a 65-year-old couple retiring in 2006 without employer-provided health benefits would need an average of $200,000 for out-of-pocket health care expenses because Medicare does not cover all costs.
Only those with high-deductible health plans - those with a minimum deductible of $1,050 for a single person and $2,100 for a family - are eligible for a Health Savings Account.
Eligible consumers can each year deposit amounts equal to their deductible into the HSA, which typically include fairly liquid as well as longer-term investments. According to Inside Consumer-Directed Care newsletter, there are now more than 1.17 million health savings accounts with $1.5 billion in assets.
"This is the triple crown of tax treatment," says Jeff Munn, a benefits consultant at Hewitt Associates. "It's the only place in the tax code where you truly have money that is never taxed."
That's because the deposit is funded with pretax dollars and can be withdrawn tax-free for out-of-pocket medical expenses. The maximum amount someone could set aside this year is $5,450 for a family and $2,700 for an individual. A person 55 and older could contribute an additional $700.
The money in an HSA also could be used at any time to fund out-of-pocket expenses, but unlike the more widely used and better known flexible-spending accounts, HSAs can be left in the accounts to grow. One hurdle for saving in an HSA is that the money may need to be withdrawn to meet the deductible.
The HSA benefit is even better if your employer contributes to it. In 2005, workers with HSA-eligible policies received an average employer contribution of $1,139 for family coverage and $689 for individual coverage, according to the Kaiser Family Foundation. About one-third of companies didn't contribute anything.
"I took the HSA to maximize tax benefits over the long term," said Brad Kimler, a senior vice president of the health and welfare consulting group at Fidelity Investments, which began in December 2005 to offer HSAs.
Kimler said that under certain circumstances a 45-year-old with a family could accumulate about $170,000 by age 65. The calculations assume the health plan's deductible is $3,000 and is increased by $500 every five years, and the employee contributes an additional $1,000 per year catch-up amount (an increase over current limits) between ages 55 and 64.
Legislation now before Congress could result in larger HSA balances. A House tax panel in September approved legislation that would, among other things, increase the current limit on HSA contributions, which currently is capped at the holder's insurance deductible, to $2,700 for an individual and $5,450 for families in 2006.
Even without the legislation, the use of high deductible health care plans and the availability of HSAs are expected to grow because businesses are desperately seeking ways to reduce the cost of health insurance. Health-insurance plans with high deductibles are one technique being used to shift costs to employees and to encourage more disciplined health spending.
Participation in high-deductible plans tripled from March 2005 to January 2006, to nearly 3.2 million individuals, according to the America's Health Insurance Plans, AHIP. The number of businesses offering them is expected to double annually. The growth, according to the report, is expected to be particularly strong among larger companies.
"We see them growing steadily but not drastically," said Helen Darling, president of the National Business Group on Health in Washington.
She said people are reluctant to change because the HSAs are complicated and involve an additional savings account.
Scott Keyes, a senior consultant for Watson Wyatt, said it's expected that 20 percent to 30 percent more businesses with at least 1,000 employees will offer the plans in 2007.
Learn more about Health Savings Accounts at http://www.health--savings--accounts.com
Posted by Wiley Long at 08:34 AM | Comments (0)
October 17, 2006
United Healthcare Introduces New Health Savings Account Card
Beginning in 2007, United Healthcare will introduce a new, integrated health card, which will give clients and health care providers access to portable health records, financial accounts and a line of credit attached to Health Savings Accounts (HSAs).
The new card also will help medical offices determine a patient's eligibility for services, co-pays and debit capabilities. Customers with a Health Savings Account will be able to use the cards to pay for co-pays and prescriptions with their HSA dollars.
United Healthcare customers who have high-deductible health plans with an HSA now carry two cards, said Daryl Richard, vice president of communications with Uniprise, a division of United Healthcare that serves large, national employers. One of the cards is a typical health insurance card, allowing health providers to determine coverage. The other is a debit card, specific to HSAs.
When introduced, the new card will combine the functions of both the HSA card and the insurance card. It will also allow physicians and other health care providers to immediately gain access to patients’ electronic medical records.
The card will not carry the medical record. Rather, it will serve as a password of sorts, allowing a doctor’s office to open a Web-based electronic medical record.
“One of the benefits to the personal health record is that when you check in at the doctor’s office, they can hit ‘print,’ and your doctor can grab it and have a much more comprehensive record at hand,” Richard said. “It will have conditions, procedures, medications with exact dates and when they were filled. It will include immunizations you and your children will have.”
Patients will also be able to add features such as family histories to their records, Richard said.
United Healthcare partnered with MasterCard to develop the new cards, using the magnetic strips on the back of MasterCard branded Health Savings Account cards to carry customer information. Card readers in medical offices are able to determine plan eligibility and make payments directly from HSAs.
Electronic health records can be accessed using a USB card reader, a piece of equipment common in many medical offices, Richard said.
“One of the joys with connectivity is that it makes health care more portable,” Richards said. “Whether it’s emergency room care or natural disasters where you have people displaced from their homes, this makes it more possible to go to a doctor’s office, and as long as they have a card reader, they can pull up your history.”
The first patients to receive the new cards will be those enrolled in consumer-driven health plans with United Healthcare, Richard said. There are about 105,500 customers in Wisconsin enrolled in high-deductible, consumer-driven health plans. Those plans also have HSAs administered through Exante Financial Services, a financial division of UnitedHealth Group that is overseen by Uniprise.
“We want to focus on customer-driven health care,” said Steve Thompson, Midwest regional director of communications with United Healthcare. “We’re talking about putting information in their hands. This allows the people who need to make those decisions to have that information first.”
After introducing the new cards to customers in Health Savings Accounts, UnitedHealth Group wants to distribute the cards to all of its 25 million customers by the end of the year, Richard said.
Posted by Wiley Long at 10:44 AM | Comments (1)
October 15, 2006
Health Savings Accounts are Part of Good Care for Medical Costs
With an increase in health care costs during 2006 that was nearly twice the pace of inflation, many consumers are questioning how they can save on medical care without sacrificing their family's health.
With the increasing popularity of Health Savings Accounts, individuals have greater control over their health care dollars. By taking a proactive approach to your healthcare, you can reduce your medical expenses. There are ways to get good care for bargain fees, even for those with no health insurance. Here is how...
Compare drug costs. While traveling abroad to purchase medications (which is illegal) makes headlines, prescription drug costs vary substantially even across town. It pays to compare. Call local pharmacies to ask about drug costs before filling a prescription, or check online. For example, Costco (www.costco.com), publishes an online price list for all prescription medications carried by its pharmacies.
Avoid the ER. For non-life- or limb-threatening emergency situations, ask a physician if an urgent care facility offers appropriate treatment. In Los Angeles, for instance, an ER visit costs an average of $380, while an urgent care visit costs $50. Additionally, unnecessary ER visits – for conditions such as stitches, flu or splinting a finger – strain the nation’s health care system. (In a true emergency, always call 911 or go to the nearest emergency room.)
Get tested cheaply. Many communities host clinics or health fairs that offer free or low-cost health screenings. Take advantage of “one-stop shopping” for blood pressure checks, blood screenings, and even take-home prostate exams. But don't forget to bring the results to your regular physician to discuss treatment options and have the results included in your medical record.
Lose weight. A 2004 Kaiser Permanente study found medical costs decreased by $850 during the first year after obese health plan members lost 5 percent of their body weight. At a minimum, work not to gain weight – the average American gains 20 to 30 pounds in the 20 years after high school. An easy guideline: Health risks seem to increase when people weigh more than 22 pounds over their weight at age 18.
Shop around. Before undergoing a major medical procedure, compare fees and outcomes. A site such as www.healthgrades.com provides costs of medical care at various facilities so consumers can negotiate care and pay less. The same site rates facilities on their outcomes, which affect total cost: A successful procedure ultimately costs less than one with many complications.
File it. Keep accurate records of all medical expenditures. If you have many health expenses, when tax season rolls around, you might qualify for the medical tax deduction. (Check with a tax advisor or visit www.irs.gov to learn more.)
Buy just the coverage you need. Those who are healthy and don’t need much medical care might benefit from higher-deductible health plans. To make the most of these plans, pair the plan with a health savings account (HSA), available to individuals as well as employees. Each year, HSA owners can stash funds up to the amount of their deductible in a tax-advantaged account. Medical costs are paid from that account with pre-tax funds. HSA insurance research information is available at: http://www.health--savings--accounts.com
There are many options available for consumers to help control their own health care costs. Choose the ones that will work best for you – and make the most of your budget and your well-being.
Posted by Wiley Long at 10:37 AM | Comments (0)
October 13, 2006
Wal-Mart Putting Health Savings Accounts to the Test
For years, proponents of consumer-driven health care and Health Savings Accounts have argued that making individuals responsible for spending decisions would slow the sharp rise in medical costs. Personal responsibility combined with greater price transparency and pricing information should help bring down rising healthcare costs. Wal-Mart Stores Inc. is in the process of conducting a massive test of these claims. Will Health Savings Accounts work at Wal-Mart?
- The Bentonville, Ark., retailer announced late last month that as of Jan. 1 its primary health-insurance offering for new hires will be a high-deductible health insurance plan with premiums as low as $11 per pay period in some areas.
- After employees are enrolled in Wal-Mart's coverage for a year, they can pair the high-deductible plan with a Health Savings Account, which provides them a tax-free method of setting aside their own money -- plus a contribution of up to $2,400 from Wal-Mart -- for medical expenses.
- The new offering quickly will become the dominant coverage among Wal-Mart's 1.3 million U.S. employees, considering that the average annual turnover rate in the U.S. retail industry is 80 percent for full-time workers.
- Employees hired before Jan. 1 can retain their older coverage plans, which offer lower deductibles for higher premiums.
Wal-Mart says the new plan, called the Value Health Plan, will save money for most of its employees. More than half of its covered associates didn't spend enough last year to exhaust their deductibles, yet they had to pay premiums higher than those in the Value Plan.
Wal-Mart said that the low-premium, high-deductible plan makes its coverage affordable for more of its employees. Also, Wal-Mart this year shortened the eligibility wait time for part-time workers to one year from two and allowed their children to get coverage.
Find out more about Health Savings Accounts and how they can help you reduce your healthcare costs at: http://www.health--savings--accounts.com
Posted by Wiley Long at 09:47 AM | Comments (0)
October 11, 2006
Msaver Offering Comparison and Pricing Tools to Health Savings Account Clients
Health savings account (HSA) customers of First Horizon Msaver will soon be able to compare brand-name drugs and generic alternatives using the company's DestinationRx's proprietary online pharmacy shopping and Rxaminer drug therapy comparison tools. Customers also will be able to get information on the best prices for those drugs at online pharmacies, local pharmacies and retail outlets.
HSA programs give all types of employees more control over their healthcare expenses by combining a lower-premium, high-deductible health plan with a Health Savings Account.
The HSA is an account that an employee uses to set aside funds on a pre-tax or tax-deductible basis to pay for routine healthcare such as office visits, prescription drugs or lab tests. Money that isn't spent during the year rolls over to cover future healthcare expenses. First Horizon Msaver works with employers and employees to set up HSA programs with leading insurance carriers.
"HSA-qualified health plans expose patients to the real costs of prescription drugs. We wanted to be the first HSA company to offer price transparency to pharmaceutical purchases made under consumer-directed health plans," said E. Craig Keohan, president of First Horizon Msaver. "This program not only has the potential to save HSA customers money on their prescription drugs through discounts, but also places them in the position to make more informed decisions about their choice of medications."
The program is expected to become operational next month. The DestinationRx tools allow consumers to find the least expensive drug regimen based on switching to lower-cost branded or generic alternatives. Last year the average savings per search for Rxaminer users was $730 per search for a one-year supply of drugs. DestinationRx's shopping tools allow further savings by identifying the local pharmacy with the best price for those drugs. Consumers can shop for the best price for the drug regimen they need by comparing pharmacies near their homes in addition to on-line and mail order pharmacies.
"The goal of health savings accounts is to encourage consumerism in healthcare," said Toby Rogers, executive vice president, DestinationRx and founder of Rxaminer. "First Horizon is a leading player in the consumerism movement by providing one place for HSA accountholders to learn about their healthcare while also having access to the best tools for managing their pharmacy costs."
Posted by Wiley Long at 09:18 AM | Comments (0)
October 09, 2006
Health Savings Account Owners See Lower Costs, Better Care
Aetna recently announced the results of its broadest study to date on Health Savings Account (HSA) plans - a review of four years of data to determine the impact of HSA health plans on 1.6 million Aetna members. Aetna is one of many insurers targeting members with improved tools and plans to improve overall performance and management of their HSA members' health.
Here's what the study found...
Included in the latest study were members in an Aetna HealthFund consumer-directed plan, as well as employees within the same employer groups who have chosen other benefits options. Five years after the launch of Aetna HealthFund, consumer-directed plans consistently result in lower medical costs, maintained or improved levels of chronic and preventive care, and increased usage of generic medications and consumer tools and information, the study results noted.
The 1.6 million members studied include 134,000 HRA members from 99 employers, 18,000 HSA members from 27 employers, and 1.45 million Aetna members from those same employer groups who have chosen other benefits offerings. These members were compared to a population of 1.4 million Aetna PPO members comprised of all large employer groups. Four years of data was studied for HRA members, two years of data was studied for HSA members, and three years of data was studied for the comparison population.
Among the study’s results, Aetna reports that it is receiving favorable reviews on its online tools: its HealthFund members accessed online tools more than twice as often as members of other plans, based on the experiences of five large employer groups.
As consumer-driven products shift decision-making responsibility to consumers, other insurers are providing more information to help members make health care decisions. Highmark, Pittsburgh, Pa. contracted with Subimo LLC, a provider of Web-based health care decision support tools. Currently, 75% of Blue Cross Blue Shield HSA plans in the United States use Subimo tools, and nearly 75 million Americans have access through their insurance company or employer.
Using Subimo's Healthcare Advisor and Hospital Advisor, members can access health care information in both English and Spanish on hospitals, medical conditions and treatment options. Healthcare Advisor enables consumers to research treatment options, know what to expect prior to surgery and find the appropriate hospital for a certain health need.
And Mount Laurel, N.J.-based AmeriHealth New Jersey plans to offer online capabilities through its Web site, www.amerihealthexpress.com, to its group customers and members, starting in 2007. Through a contract with Mount Pleasant, S.C.-based Benefitfocus.com Inc., AmeriHealth New Jersey will improve its self-service Web site by providing new Web tools to create an online resource for health benefit management.
Other key findings from the Aetna study point to the ability of Aetna’s members to experience savings and improve their overall health focus: Employers who offered Aetna HealthFund as an option are seeing savings across all products offered. Those who offered an HRA option plan effective in January of 2003 experienced an average medical cost trend of 6.7 percent over a three-year period. Both Aetna HealthFund HRA and Health Savings Account (HSA) members with chronic conditions maintained or improved the level of care they received prior to joining the plan, including a 6% higher usage of inhaled steroids among asthmatics when compared to a similar population. Preventive care was also maintained or improved. For example, first-year HSA members received cervical cancer screenings at a 13.8 percent higher rate than PPO members.
Learn more about Health Savings Accounts and what they can do for you at: http://www.health--savings--accounts.com
Posted by Wiley Long at 09:02 AM | Comments (0)
October 07, 2006
Health Savings Account Plan from Health Net of California Available to Individuals, Companies of Any Size
Individuals who do not have employer-sponsored health insurance, as well as employers of any size, now can purchase EZAccess HSA from Health Net of California. EZAccess HSA offers a choice of low-cost, high-deductible preferred provider organization (PPO) health insurance plans paired with an individually owned health savings account (HSA) from Wells Fargo Bank, N.A.
“Our consumer-directed plans are perfect for those who are looking for low-cost coverage that provides greater personal control of health care dollars and rewards informed health care decisions,” said Stephen Lynch, president and CEO of Health Net of California. “This is another example of Health Net’s commitment to providing affordable benefits and access to quality care.”
With the EZAccess HSA, preventive care (for both children and adults) is covered without being subject to deductibles. And by paying for their remaining qualified medical expenses through an HSA, members may save, invest and spend their health care dollars free of federal taxes. In many cases, employer contributions to employees’ HSAs are not subject to FICA or FUTA taxes. EZAccess HSA account holders receive two complimentary Wells Fargo HSA cards, which provide “easy access” to their funds and work at all eligible health care providers that accept Visa® debit cards.
The number of Americans using consumer-directed health plans (CDHPs) approximately doubled between January 2005 and January 2006, according to the U.S. Government Accountability Office. And the number of large employers offering consumer-directed plans rose from 3 percent to 20 percent between 2003 and 2005, according to the Kaiser Family Foundation.
One of the driving forces behind the popularity of CDHPs is their ability to better educate members about medical costs and provide an incentive for them to make cost-conscious decisions about their health care. To help its members make informed health care decisions, Health Net offers a robust decision-support system called Decision Powersm.
Decision Power provides 24/7 access to Health Coaches, specially trained and experienced professionals – such as nurses, dietitians and respiratory therapists – who are skilled at providing evidence-based health information and coaching support to help members better evaluate their available health care choices. And Decision Power provides independent access to information resources and online tools, as well as support videos, as appropriate, to assist members in making better health care decisions.
Other Health Net online decision-support tools include a hospital comparison report that provides independent analysis of area hospitals, access to evidence-based medical treatment information, and health surveys.
Posted by Wiley Long at 12:29 PM | Comments (0)
October 05, 2006
Medical Tourism can be a great option for Health Savings Account Owners
It's easy to see why people are tempted to combine travel with surgery: The cost of medical procedures is often much lower abroad, says Devon M. Herrick, a senior fellow with the National Center for Policy Analysis. For owners of a Health Savings Account, medical tourism is even more appealing.
Since travel and expenses for medical procedures abroad can be paid for from your Health Savings Account, medical tourism is a viable option that can often times be less expensive than having a procedure done locally. There are now new services to help individuals find medical facilities abroad.
PlanetHospital.com is a Web site that connects patients with high-quality medical facilities abroad:
- When potential clients contact PlanetHospital.com, the medical staff reviews their medical history to assess whether they are well enough to travel; some people may have waited too long to seek care and therefore are not healthy enough to make a long flight to India or Thailand.
- Staff members then help clients choose appropriate physicians and destinations for care; the medical records are digitized and placed online to allow physicians in the destination country to easily review the patients' medical histories; PlanetHospital.com then arranges conference calls between the physician and patient to discuss the procedure.
- Once the patient chooses a physician, arrangements are made for the procedure. PlanetHospital.com assigns a case manager from the destination country; the site often arranges travel and lodging as well.
- A country manager coordinates any additional requirements such as cell phone service and airport transportation; case managers attend to all needs that arise while the patient is in the destination country.
PlanetHospital.com patients can even choose package deals. For instance:
- The PlanetHospital.com Web site advertises a breast augmentation and tummy tuck combination package for $9,495.
- That price includes airfare, meals, surgery, and five days' accommodation at a clinic and hotel in either India or Thailand.
- The Indian doctors who perform the procedures are American-board certified.
Although insurers currently do not make medical travel part of their provider networks, they may in the future, according to Mercer Health & Benefits, a national consultancy group for human resources managers.
This is great news for Health Savings Account owners. Visit us at http://www.health--savings--accounts.com for more information on HSAs and how they can help you.
Posted by Wiley Long at 08:43 AM | Comments (0)
October 03, 2006
Mainstream Media Mischaracterizes Health Savings Account Effects
A Commonwealth Fund study in the July/August issue of Health Affairs found high-cost patients with Health Savings Accounts (HSAs) spend less out-of-pocket money than they would under traditional health insurance plans. A Bloomberg wire service story treated this as a newsworthy discovery of a "flaw" in the HSA design, since if less is spent out-of-pocket, incentives to conserve costs under HSA plans must be weaker.
There is no news here, and there is no flaw...
HSA type-plans have been on the market for a decade in the United States and for more than a decade in South Africa. Everyone familiar with the plans knows they typically lower out-of-pocket expenses for high-cost patients. This fact is not only well documented, it has been hashed over in the trade literature, at health care conferences, and in numerous think tank reports, including studies by the RAND Corporation, Urban Institute, National Bureau for Economic Research, and National Center for Policy Analysis.
Seeking Consumer Pain
The only people who will find this recent "discovery" surprising are HSA critics who have been saying for years that HSAs would harm the sick, especially the chronically ill, and who (despite being quite vocal) tend to have very little familiarity with actual products on the market.
Far from this being a "flaw," most Health Savings Plans are an improvement over traditional insurance, which has co-payments (sometimes without limit) for expenses over which patients exercise no discretion (such as inpatient hospital costs). Most HSA plans, by contrast, allow patients to manage health care dollars for expenses over which they can exercise discretion and where it is appropriate for them to do so.
Here's a news flash: The goal of HSA plans is to allow patients to manage their own health care dollars, not to see how much financial pain we can make them suffer.
Learn more about the reality of Health Savings Accounts by visiting http://www.health--savings--accounts.com
Posted by Wiley Long at 09:01 AM | Comments (0)
October 01, 2006
Health Savings Accounts Give Business Owners Insurance Options
Many small business owners face the same quandary when it comes to health insurance for their employees: With one or two employees struck with prolonged, costly illnesses, they face monstrous spikes in the cost of health care.
Joe Knight, co-owner of Ogden-based Setpoint Cos., is one of those business owners. He turned to an option that is becoming increasingly popular - ditching the traditional health insurance system in favor of a Health Savings Account (HSA), paid in part by the employer and, depending on the plan, in part by the worker.
"I was surprised to find that the Health Savings Account option was far better financially for all of my people, even my employees with medical situations," he told a Senate committee earlier this week. "Now that we are nearly through our second year with an HSA, everyone is happy with the change."
The accounts are tax-free and tied to HSA-qualified health plans with high deductibles. Policyholders pay up front for doctor visits, prescriptions and trips to the dentist from the accounts. Unlike flexible-spending accounts, any unused money rolls over from year to year.
High deductibles - they start at $1,050 per person and $2,100 per family - keep the policies cheap and, as a result, employers can afford to pay more of an employee's premium or finance a portion of the accounts. Annual out-of-pocket expenses are capped at $5,250 for an individual or $10,500 for a family.
Sen. Orrin Hatch, who chaired the hearing of the Senate Finance Subcommittee on Health Care, is sponsoring legislation aimed at offering incentives and expanding the savings accounts.
The Utah Republican argues that giving workers a health savings account to pay health costs makes them more active participants in choosing their medical care, encouraging them to seek out better deals and save their money, something they can't do with traditional employer-provided coverage.
"The economics of it works. The practicality of it works, too," Hatch said. The cost of medical care will come down "if we can get people to be concerned about the cost of their treatment."
Health Savings Accounts are also a key component of the Bush administration's health plan. Deputy Assistant Treasury Secretary Robert Carroll said consumers will make the most responsible choices when they have "more skin in the game."
The number of people enrolled in HSAs has grown, from fewer than a million in March 2005 to nearly 3.2 million in January 2006, according to America's Health Insurance Plans, a national health-insurance trade association.
But Sen. Jay Rockefeller, D-W.Va., is not convinced that the savings accounts are the panacea that Hatch and others claim, and could actually harm lower-income or chronically ill individuals.
The accounts will primarily benefit those in higher income brackets and healthier workers, he says. Only about 4 percent of employer-sponsored health plans fell into that category, according to the annual report by the nonprofit Kaiser Family Foundation and the Health Research and Educational Trust that was released Tuesday.
"As healthier and more affluent workers shift to HSAs, older and sicker workers will be left in traditional employer-sponsored policies," Rockefeller said. "This type of adverse selection will drive up premiums for traditional employer-based coverage, further encouraging firms to provide less desirable coverage or to drop health coverage altogether."
Health Savings Accounts generally carry much lower premiums, but much higher deductibles. Research by the Government Accountability Office, Congress' nonpartisan investigative service, found that the average deductible was nearly six times higher in the HSAs than in typical plans.
The GAO also found that more than half of those who had signed up for Health Savings Accounts made more than $75,000 a year as of 2004. The average income was $133,000.
Learn more about HSAs at: http://www.health--savings--accounts.com
Posted by Wiley Long at 05:01 PM | Comments (0)