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May 31, 2007
Worker's Income Level Affects Health Savings Account View
High-income consumers and low-income consumers are interested in different aspects of Health Savings Account arrangements.
Researchers at Mintel International Group Ltd., Chicago, have published figures illustrating the differences.
The researchers have published the survey in a wide-ranging review of the Health Savings Account market that deals with issues such as the size of market, the nature of the major players in the market, and the strategies the players are using to market their products.
One section of the report deals with consumers’ views of Health Savings Accounts and includes data broken down by factors such as age, household size and income.
The Mintel researchers found that consumers with annual household incomes under $25,000 were almost as interested in Health Savings Accounts and the accompanying high-deductible health insurance as consumers with annual household incomes over $100,000.
Although the high-income survey participants were more likely to have heard of Health Savings Accounts, the level of willingness to consider an HSA was similar in both groups.
Only 34% of the high-income consumers and 38% of the low-income consumers said they are definitely not interested in an HSA.
But the researchers found that the 2 groups of consumers have different reasons to be interested in Health Savings Accounts.
Only 5% of the high-income consumers said they are interested because they have no health coverage and believe that they might be able to afford coverage if they had an HSA arrangement, but 29% cited potential tax savings as the best reason to get an HSA.
In the low-income group, 12% of the consumers surveyed said they are uninsured and view an HSA as a possible strategy for affording health coverage, and 16% said the most important advantage of owning an HSA would be the ability to pay for things not currently covered by insurance, such as eyeglasses, with pre-tax dollars.
For survey participants with incomes under $50,000, the most important disadvantage of the HSA concept was the idea of having to pay the full cost of items such as prescriptions before they met their deductibles.
Higher-income participants said the biggest disadvantage was the risk that they might not spend more than the deductible on health care in a year.
Posted by Wiley Long at 10:10 AM | Comments (0)
May 25, 2007
HumanaOne to Offer New Health Savings Account Plan Options
HumanaOne, a division of Humana Inc., has launched a new portfolio of individual Health Savings Account insurance plans designed to make it easier for consumers to select a plan according to their own personal preferences, lifestyles and budgets.
HumanaOne plans are designed specifically for individuals and families not insured by an employer, such as self-employed entrepreneurs, small business employees, part-time workers, students and early retirees.
HumanaOne's new personal health insurance plan portfolio includes a spectrum of benefits with three in-network coinsurance levels and 17 annual deductible choices.
The portfolio is organized into three packages:
1. HumanaOne Portrait is for people who are security-minded and want benefits like those provided by big employers.
2. HumanaOne Autograph is for people who want flexibility to fit their financial plan. Three of five Autograph plans are Health Savings Account qualified.
3. Monogram from HumanaOne is for the "young and invincible at heart" who want a low-cost plan with a safety net "just in case."
The plans can be further personalized with optional benefits such as dental insurance, life insurance and supplemental accident coverage.
"With the U.S. market for individual health insurance at 18 million and growing, we recognize that personal health insurance plans cannot be 'one size fits all,'" said Jerry Ganoni, president of HumanaOne, HumanaDental and Humana Small Business. "That's why we created three separate families of plans, each tailored for a particular kind of health insurance consumer, but at the same time highly customizable. This represents the most significant product expansion for HumanaOne since its inception in 2002."
Within the new portfolio of HumanaOne plans, deductibles range from $1,000 to $7,500 for single coverage and from $2,000 to $15,000 for family coverage. Premiums start as low as $30 per month for single coverage on Monogram and extend upward according to the plan, its features and level of benefits.
"This new portfolio of products positions Humana to serve a much larger portion of the individual health insurance market, which we believe will continue to grow at a rate of 5 to 8 percent annually over the next five years," said Steven DeRaleau, chief operating officer of Humana. "As more people leave group health plans, retire early, become self-employed or work part-time, they will increasingly look to individual health insurance, and Humana will be there to serve them with a plan ideally suited to their distinct needs."
Learn more about Humana HSA plans and Health Savings Accounts at: http://www.health--savings--accounts.com
Posted by Wiley Long at 03:05 PM | Comments (0)
May 22, 2007
Mintel Report Predicts Health Savings Account Enrollees to Rise to 30 Million by 2009
According to a new report from Mintel, Health savings accounts are positioned for aggressive growth over the next three years. The report predicts the number of HSA enrollees will increase to 30 million by the end of 2009. The research firm's exclusive survey revealed that only one third of respondents would not be interested in an HSA, indicating substantial potential for increasing enrollment through consumer education. Of the respondents, 13 percent say that they currently have a HSA through their employer.
The Mintel report cites the opportunity for aggressive marketing to expand awareness and growth of Health Savings Accounts.
One feature of Health Savings Accounts that is particularly attractive to consumers is the opportunity for pre-tax savings. According to Mintel’s survey, close to one in four respondents cite this as a key advantage of Health Savings Accounts. This indicates that companies should focus on highlighting this key advantage point in their marketing messages, as well as clearly communicate the other benefits of the product.
However, consumers are having some difficulty with understanding how HSA accounts work. Mintel’s research reveals that close to a quarter of respondents “don’t know” if they would want this type of account. This indicates that, despite a detailed explanation of Health Savings Accounts in the consumer survey question, many consumers either know little about them or have not made up their mind about the product. The majority of consumers who say they “don’t know” fall in the 18-34 age range, with more than a third of this group stating this response.
“Consumers are still uneducated about Health Savings Accounts and their benefits,” said Susan Menke, senior financial services analyst for Mintel. “Employees are generally given information about their benefits options at enrollment, but on a very limited basis thereafter. On an ongoing basis, many employees must get information by proactively visiting Web sites or requesting print materials. HSA providers, as well as employers, can benefit from more continuous and aggressive educational efforts.”
HSA direct-to-consumer marketing efforts are increasing, but they still have room for growth. According to Mintel Comperemedia, a competitive intelligence service that analyzes direct mail, email marketing, and print media, less than 8.1 million HSA direct mail pieces were sent directly to consumers last year. However, there was an 89 percent jump in HSA mail volume, comparing first quarter 2007 to first quarter 2006. Two top companies that promoted Health Savings Accounts by direct mail to consumers were Aetna and Blue Cross of California. Humana was one of the top companies that communicated with consumers via email.
While larger banks are working with insurance companies to set up HSA arrangements, some smaller companies, such as local credit unions, are providing in-branch information on HSA accounts. In the consumer email marketing realm, Mintel Comperemedia observed that several campaigns mentioned HSAs along with other products and services.
“Insurance companies have the opportunity to more clearly explain the advantages of Health Savings Accounts directly to consumers through a number of channels,” Menke said. “For instance, companies can better educate consumers through more aggressive direct marketing and email marketing campaigns. There are many healthcare options available, and HSA marketing messages will need to be simple and direct in order to effectively reach consumers and increase growth.”
About Mintel
Mintel is a leading global supplier of consumer, product and media intelligence. For more than 35 years, Mintel has provided insight into key worldwide trends, offering unique data that directly impacts client success. With offices in Chicago, London, Belfast and Sydney, Mintel has forged a unique reputation as a world-renowned business brand. For more information on Mintel, please visit www.mintel.com.
Posted by Wiley Long at 10:22 AM | Comments (3)
May 19, 2007
Choices for Health Savings Accounts Expand in Kansas
Fewer businesses are offering employer-sponsored health insurance to their employees, but insurance companies are beginning to see the decline as an opportunity. Health Savings Accounts are an excellent option for individuals and families without employer-sponsored health insurance.
Golden Rule Insurance Co. has returned to Kansas after a 15-year hiatus with a new parent company -- UnitedHealthcare -- and Health Savings Account plans aimed at people without an employer-sponsored health plan.
"We're trying to do business in those states where there's a need for competitive and affordable health insurance," said Golden Rule spokeswoman Ellen Laden.
"The number of businesses that can afford to cover their workers continues to get smaller. In a lot of cases, it may be more cost effective to go outside the group plan and buy individual insurance."
Roughly three in five businesses nationwide offer health benefits, according to a 2006 survey by the Kaiser Family Foundation and Health Research and Educational Trust.
For very small businesses -- those with less than 10 workers -- the rate drops to less than 50 percent, the survey showed.
These statistics weren't lost on Coventry Health Care of Kansas, which last fall produced CoventryOne, an insurance line of preferred provider plans and Health Savings Accounts aimed at individuals whose employer benefits aren't available or affordable.
"It's a two-pronged approach: reaching out to people who don't have benefits through their employers, and also to employers that do have a group health insurance benefit, but the dependent costs have become too much of a burden," said Dave Reynolds, chief operating officer.
Coventry is banking on its competitive rates and expansive provider network -- which covers all of Kansas, Oklahoma and the western half of Missouri -- to sell itself.
"None of our competition can say that," Reynolds said. "We worked very hard to build a tri-state seamless network."
Blue Cross and Blue Shield of Kansas -- the largest insurer in the state and until now the only large provider of individual health plans in Wichita -- will now have significant competition.
"The fact there are a couple more people entering (that) market in Kansas is good for consumers," said spokesman Graham Bailey.
"Not that Blue Cross would ever take advantage of being the only player in the marketplace -- we realize we have to make prices competitive, find new products, provide the best customer service possible."
"Competition never hurts."
In fact, competition is one of the important aspects of a Health Savings Account. Learn more at: http://www.health--savings--accounts.com
Posted by Wiley Long at 12:22 PM | Comments (0)
May 16, 2007
2008 Health Savings Account Contribution Limits Set to Increase
The United States Treasury Department has posted the 2008 Health Savings Account contribution limits on its website at:
In 2008, the maximum contribution that can be made for individuals with single coverage will be $2,900, up from $2,850 this year, and the maximum contribution for family coverage will rise to $5,800, up from $5,650, according to the document posted.
Additionally, the maximum out-of-pocket expense — including deductibles — that individuals with single coverage can be required to pay will rise to $5,600 next year, up from $5,500 in 2007, and to $11,200 for family coverage.
The new Health Savings Account limits reflect increases in the cost of living are being posted earlier this year due to changes that went into effect late in 2007.
Learn more about Health Savings Accounts and all the health and tax advantages they can provide you at HSA for America.
Posted by Wiley Long at 09:57 AM | Comments (29)
May 13, 2007
Wal-Mart Helping Health Savings Account Owners
Wal-Mart's advance into health care is a testament to private-sector industriousness. While others whine about America's health care "crisis," and back monstrous government programs to solve it, Wal-Mart is actually making care more affordable, says Investor's Business Daily (IBD).
By providing in-store clinics and discount prescription drugs, Health Savings Account owners can take advantage of Wal-Mart's low cost health care.
Consider the retailer's record:
- Already, Wal-Mart has brought low-cost health care by selling 30-day supplies of more than 300 generic prescription drugs at some stores for $4.
- Almost a third of those $4 prescriptions are bought by the uninsured.
- Customers have saved $290 million through the program just since September.
Now, they've gone even further, says IBD:
The company has announced that it will open as many as 400 in-store medical clinics in the next two to three years.
By 2014, it said, clinics could be in as many as half its 4,000 stores.
The clinics will be operated by local hospitals or other independent professionals, and will particularly help the poor, mirroring the low prices in Wal-Mart stores.
Cynics will say clinics and low-price drugs are a ploy to lure more shoppers into Wal-Mart, says IBD. Is that wrong? The essential truth missing from their tirades about Wal-Mart's rapacity is that it's a company, not a charity. It must make a profit to stay in business, provide jobs and keep prices low.
Opening clinics also will likely create new enemies who fear that their practices will be harmed by the presence of price-cutting Wal-Mart clinics in their communities, says IBD. But the issue shouldn't be about saving local medical practices any more than saving local retailers who always complain when Wal-Mart moves in. It should be about quality health care -- and prescriptions, groceries, clothing and essential household items -- at prices all Americans can afford. Wal-Mart does that.
Wal-Mart's health care services only stand to benefit Health Savings Account owners. Visit http://www.health--savings--accounts.com and find out what an HSA can do for you.
Posted by Wiley Long at 03:11 PM | Comments (0)
May 07, 2007
Exante Bank Launches New Health Savings Account Designs
Exante Bank is launching three new Health Savings Account designs tailored to meet consumers' individual health care financial needs.
The new Health Savings Account designs are based on consumer research that analyzed the different saving and spending habits of individuals with a Health Savings Account. Depending on whether an individual exhibits the behavior of a health care spender, saver or investor, Exante is offering varying levels of monthly maintenance fees, interest rates and investment thresholds so that the Health Savings Account best matches the individual's health spending patterns and their overall financial philosophy.
- Health eAccess HSA is designed for health care spenders who do not carry a large balance in their Health Savings Accounts and may prefer a basic account with easy access to funds and a lower monthly maintenance fee (waived if the balance is $500 or higher).
- Health eSaver HSA is designed for health care savers who carry higher balances in their Health Savings Accounts in order to take advantage of higher interest-rate returns and prefer to keep most of their funds in an FDIC-insured account. This account carries more competitive interest rates depending on the account balance and maintains free access to investments if the balance exceeds $2,000.
- Health eInvestor HSA is designed for consumers interested in maximizing the long-term savings potential of their HSA for future health care expenses, and who primarily use the account for investing purposes. They can opt for a lower minimum investment threshold ($500) for expanded access to an array of highly rated mutual fund options.
Exante Bank announced the plans at the Consumer Directed Health Care Conference in Las Vegas at the end of April.
“We’ve listened to our customers who’ve told us they want more flexibility and options for their health savings accounts, such as access to tax-savings and convenience with a basic, low-cost account, or more flexibility of FDIC-insured savings combined with mutual fund investments,” said Todd Berkley, Exante’s vice president of HSA Product Management. “By customizing our account options, we’re maximizing the value that Health Savings Accounts deliver to consumers and creating solutions that more closely match their health care spending and saving habits.”
The Health eSaver account is currently available to all new and existing Exante accountholders. The Health eAccess and Health eInvestor accounts will be available beginning in the fourth quarter. Exante will provide consumers with a customized analysis tool to help them decide which account best fits their needs and when it makes sense to switch, at no cost, from one account to another. Employers and other health plans using Exante as their HSA administrator also have the option to offer any combination of these three new accounts to best fit the customized needs of their employees or members.
Learn more about what a Health Savings Account can do for you at: http://www.health--savings--accounts.com
Posted by Wiley Long at 09:45 AM | Comments (0)
May 04, 2007
John Goodman Comments on Health Savings Accounts
John Goodman, from the National Center for Policy Analysis (NCPA), had this to say in his response to his Wall Street Journal op ed.
"A number of people have asked me to clarify my position on Health Savings Accounts, and here is my response:
Suppose we passed a law tomorrow prohibiting all insurance companies (including Medicare and Medicaid) from paying any medical bills less than $5,000. What would happen? The medical marketplace would transform almost overnight. Continued...
Within a couple of months, there would be no such thing as a primary care physician (PCP) who did not post prices - at least for routine procedures. PCPs would offer telephone and email consultations. They would keep patient records electronically (just like lawyers and accountants). Overall, there would develop a teeming, bustling, entrepreneurial marketplace for primary care, diagnostic tests and most prescription drugs.
Specialty markets would develop for the chronically ill, as doctors competed for their business instead of trying to avoid them. Patient education would become an emerging field, with providers offering to teach diabetics, asthmatics, etc. how to manage their own care. Internet drug sales would double, triple and quadruple, as brand drugs faced increasing competition from generic, therapeutic and over-the-counter substitutes. At the same time, overall health care spending would plummet.
(Just thinking about it makes you wonder why we haven't done this already.)
Now, can the widespread use of Health Savings Accounts create this same transformation? Certainly HSAs and HRAs, along with an even greater number of uninsured and a still larger number of employees facing higher deductibles and co-payments, are already having an impact on the market. How else can you explain the exploding number of walk-in clinics, the growth of internet drug sales, and $4-a-month-for-generics at Wal-Mart and other big box retailers?
However, the impact of HSAs will be much more limited than the scenario described above. The reason: while HSAs free the patient side of the market, they do not free the provider side. Current law requires insurers with HSA plans to create an across-the-board deductible and specify what spending counts toward the deductible. In the process, HSAs do not become a radical challenge to the existing payment system. Instead, they become an extension of the current system.
As you approach your doctor's office with HSA in hand, your insurance company has already established with your physician which tasks are covered, which ones are not and how much will be paid. Of course in principle you can use your HSA to pay for telephone and email consultations, electronic medical records, patient education, etc. But since none of these expenditures count toward your deductible, doctors have weak incentives to change the way they practice medicine.
HSAs free patients and give them good incentives. They do not free the supply side of the market, however. They could, if we changed the federal law. What we need are completely flexible accounts that can wrap around any health plan."
Here at HSA for America, we couldn't agree with Mr. Goodman more. Learn more about what a Health Savings Account can do for you at: http://www.health--savings--accounts.com
Posted by Wiley Long at 12:49 PM | Comments (0)
May 01, 2007
Company Sharing Rebates with Employees Thanks to Health Savings Account Plans
More than 5,000 employees of Alegent Health who are participating in the health system's ground breaking -- and money saving -- Health Savings Account plan will be receiving a check in the mail.
But even more significant than the cost savings achieved through the Health Savings Account program has been the improvement in the health of participating employees and their families over the past two years. For example, nearly 400 employees successfully completed smoking cessation classes while 670 participants in weight management programs lost a combined 6,500 pounds.
"When we launched our Next Generation health plans two years ago, we wanted to provide incentives that would reward employees for taking better care of themselves and their families," said Alegent Health CEO Wayne Sensor. "The results we've seen have exceeded our expectations in nearly every category -- from smoking cessation to weight loss to preventive care to improved management of chronic illnesses. These results should serve as a beacon of hope for all who believe that individuals hold the power to not only improve their own lives, but to change our health care system for the better."
Currently, 88 percent of employees who have chosen an Alegent Health benefit plan participate in either a Health Reimbursement Arrangement (HRA) or Health Savings Account (HSA), which offer participants flexibility and control over how they spend their health care dollars. The remaining 12 percent are in a Preferred Provider Plan. Alegent Health covers 100 percent of preventive care costs and pays employees to complete electronic health check-ups.
In addition, the company has provided access to free health coaches and deposited special incentives into the health care accounts of employees who have made significant lifestyle changes or taken new steps to manage a chronic illness.
Overall, Sensor said, Alegent Health employees have proven their ability to manage health care spending wisely and have steadily added to the balances in their accounts that can be used for future health care expenses. The current balance in employees' accounts totals nearly $1.9 million.
The change in spending patterns by employees has resulted in dramatic slowing of claims growth over the past two years, Sensor said. While the health system had budgeted for a 5.8 percent increase in health care costs from 2005 to 2006, the actual increase was just over 1 percent. As a result, Alegent Health is returning nearly $700,000 to plan participants.
Sybil Bendorf, who works in Food and Nutrition at Alegent Health Bergan Mercy Medical Center, said the $100 rebate check she and other employees will receive isn't the only reward for participating in Alegent Health's Next Generation health plans. Bendorf took advantage of the health plan's incentive to join Weight Watchers for free, and has since lost nearly 70 pounds. Joining a weight management program at no cost is just one example of the many health incentives offered by Alegent Health's health care plans.
"Participating in a consumer-driven plan has given me the push I needed to take charge of my health. Thanks to Weight Watchers classes offered conveniently at work, I've shed 68 pounds and can easily walk up the stairs without getting winded. I'm less stressed and was able to stop taking one of my high blood pressure medications. Now I'm confident I'll be around to watch my grandchildren grow up," said Bendorf.
Of the three consumer-driven plans Alegent Health has offered, Bendorf selected the HRA, which is funded by the health system and will maintain a balance as long as the employees remain in their jobs. Other plans include a HSA, which allows unused balances to be carried forward even after an employee leaves the company. The third choice is a Preferred Provider Plan.
When the health plans were implemented on January 1, 2006, Alegent Health's leadership pledged that if employees could achieve a collective improvement in health and slow rapidly rising costs, some of the savings would be returned to them. In designing the plans, Alegent Health officials said they recognized early on that the amount of money spent on preventive care would significantly increase.
"To achieve lasting results, we recognized the need to actively engage employees to take charge of their health through preventive care," said Ted Schwab, chief innovation officer of Alegent Health. "Nationwide, while 2.8 percent of the health care dollar is spent on preventive care, 7 percent of our expenditures went toward preventive care. But we believe this investment in employees' health is paying off by bettering their lives even as it uses health care dollars more wisely."
CEO Sensor said Alegent Health's consumer-driven health care plans were introduced as part of a broader effort to put patients at the center of the health care equation. This broader initiative involves providing meaningful quality comparisons and introduction of an online tool called My Cost to help all patients understand their out-of-pocket costs for the most common treatments and procedures.
"As we started to envision what consumers would need to gain better control of their own health and medical spending decisions, we quickly realized that access to meaningful quality data and out-of-pocket costs would be critical to the equation," Sensor said. "When consumers truly understand the value of the health care they receive, and when they are empowered to make good decisions, everyone benefits. We believe our experience with consumer-driven care can serve as a model for others and lead to positive changes in the health care system."
Learn more about Health Savings Accounts and how they can help you and/or your company at: http://www.Health--Savings--Accounts.com
Posted by Wiley Long at 11:01 AM | Comments (1)