« Defending Health Savings Accounts | Main | Health Savings Account Banks Selling Health Insurance? »
July 15, 2008
UnitedHealthcare Health Savings Accounts
UnitedHealth Group has announced that enrollment in its Health Savings Account qualified plans has surpassed 2.7 million individuals at UnitedHealthcare and its affiliates (Golden Rule), and for the first time more consumers are covered by a health plan connected to a Health Savings Account than a Health Reimbursement Account. The numbers illustrate a continuing rise in the popularity of Health Savings Accounts, which have been offered for just four years, compared to Health Reimbursement Accounts, which have been available since 2000.
As of March 31, 2008, UnitedHealthcare’s HSA plans included 1.38 million people covered by a health plan with a Health Savings Account (HSA), and 1.34 million people covered by a health plan with a Health Reimbursement Account (HRA). This includes both HSA plans in the employer-sponsored market, as well as plans purchased by individuals and families.
“More employers and consumers are discovering that consumer-driven health plans, and Health Savings Accounts in particular, are among the most effective ways to give people greater control over their health care spending and can help drive more affordable coverage,” said Meredith Baratz, vice president of Market Solutions for UnitedHealthcare’s Definity CDH portfolio. “Health Savings Accounts, especially when coupled with robust health information and education programs, give people the tools they need to become more informed health care consumers. Our studies show that they get the preventive care they need to stay healthy and take a more active role in managing their health-related finances in these programs.”
More than 22,500 employers now offer an HSA plan through United Healthcare. In fact, membership through large national companies offering a health plan connected to an HSA or HRA increased by more than 325,000 participants from December 2007 to March 2008, signaling the largest new year increase in HSA enrollment for large customers since the plans became available.
As participation in HSA-based health plans has rapidly increased, so has the related health banking activity. UnitedHealth Group’s OptumHealth Bank (formerly Exante Bank) reported that, as of March 31, 2008, HSA deposits total $580 million. About $25 million of those deposits have been invested in a variety of mutual fund options offered by OptumHealth Bank, reinforcing the long-term tax-advantaged savings potential of Health Savings Accounts.
The rise in popularity of Health Savings Accounts extends beyond employers. In the individual market, United Healthcare’s Golden Rule Insurance Company, which helped pioneer the HSA concept more than 15 years ago, says that 38 percent of its customers nationally are now covered by HSA plans. More importantly, 40 percent of customers purchasing individual HSA-qualified plans in 2007 indicated that they had no previous health insurance coverage.
“We believe the more consumers learn about Health Savings Accounts and how they work, the more they will understand the affordability, tax savings and control over health care spending that HSA plans offer,” said Richard A. Collins, president of UnitedHealthcare’s individual business.
Posted by Wiley Long at July 15, 2008 10:08 AM