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May 29, 2009
Environmentally Friendly Health Savings Accounts
Canopy Financial has a Web-based Health Savings Account processing platform that has been adopted at almost half of the top 25 banks. They are now targeting another paperless evolution for health plans, third-party administrators, and institutions. Canopy has introduced a new Green Health Savings Account that now provides 100-percent paperless account handling, including account management, e-statements, enrollment, mobile alerts and online bill-pay.
To further its green appeal, their Health Savings Accounts promises to include access to mutual funds that invest exclusively in environmentally friendly companies, along with access to information on preferred environmentally conscious healthcare facilities and service providers. "Consumers increasingly view companies that offer sustainable products and services as preferred vendors," says Vik Kashyap, CEO of Canopy.
According to PayItGreen.org, paperless Health Savings Accounts could eliminate over 39 million pounds of wasted paper, save over 474,000 trees, and avoid release of over one billion pounds of greenhouse gas emissions annually.
Find a list of preferred HSA Administrators at HSA for America.
Posted by Wiley Long at 03:01 PM | Comments (0)
May 26, 2009
Health Savings Accounts Come to Puerto Rico
Health Savings Accounts have now been established in Puerto Rico. Puerto Rico will now allow contributions to the accounts to be exempt from personal income tax, and will apply to the taxable years that commence on and after January 1, 2009. Under Health Savings Accounts, the insured will choose the provider and/or health service that they want to receive payment and will pay for those services with the funds that had accumulated in their Health Savings Account, covering up to the total annual deductible.
The employee and the employer both may make contributions to the Health Savings Accounts. Once the insured has covered the high annual deductible, either charging the HSA qualified expenses eligible for medical attention to the funds in the Health Savings Account or with another source of funds, coverage from the traditional medical plan will begin.
The Health Savings Accounts will allow annual contributions that are not considered income received by the taxpayer, that are deductible when taxed, and after the first year are converted into a savings vehicle with tax benefits. Upon reaching the age of 65 years, the owner of the Health Savings Account may withdraw the accumulated funds and use them for any purpose (it does not require a medical expense) without having to pay penalties, but will pay tax on the withdrawn amount. Amounts deposited in a Health Savings Account beyond the limits for each year are subject to a 6% penalty.
Posted by Wiley Long at 09:50 AM | Comments (0)
May 23, 2009
Banks Are Creating More Health Savings Accounts As Industry Grows
With the money coming from the Health Savings Account market expected to increase in the coming years, experts are predicting the Health Savings Account market could reach $40 billion in the next five years. That's not surprising, as it appears consumers are getting used to transferring money into Health Savings Accounts on a regular basis. In fact, as of the first quarter of 2008, consumers transferred an average $2,674 into their Health Savings Accounts, but spent only $1,216 on average, according to Canopy Financial. That certainly leaves plenty of money for banks to invest for their purposes.
Given these numbers, it's not surprising that some of the biggest health insurance companies are not hesitating to at least dip their hands into programs like Health Savings Accounts and health debit cards. Experts predict that over 10 percent of that $40 billion could go to companies that help consumers manage their Health Savings Accounts, so insurers are maneuvering to be one of those companies.
It's not just banks who are getting involved, either. Major health insurers like WellPoint, United Healthcare, and Blue Cross Blue Shield already have HSA programs, but experts predict that other insurers will jump into the banking industry before long to get their share of the cash.
Find a list of preferred HSA Administrators at HSA for America.
Posted by Wiley Long at 11:39 AM | Comments (0)
May 21, 2009
Study Shows Health Savings Account Contributions Increasing and More Employers Offering HSA Plans
In their annual survey of employer health benefits, the Kaiser Family Foundation and the Health Research & Educational Trust found that more employers are offering Health Savings Account plans and that employer contributions to Health Savings Accounts doubled since 2007.
The study showed that 13% of firms offering health benefits now offer a Health Savings Account Plan with an Health Reimbursement Arrangement in 2008. While the report notes that the increase does not represent a significant difference from the 10% reported in 2007, they do point out that there has been a statistically significant increase in the offer rate since the 7% reported in 2006.
As for the types of employers who have adopted Health Savings Accounts, the study found that firms with 1,000 or more workers are more likely to offer a Health Savings Account than smaller firms. Twenty-two percent of firms with 1,000 or more workers offer a Health Savings Account compared to 13% of firms with 3 to 199 workers or 15% of firms with 200-999 workers.
The study also found that workers enrolled in HSA-qualified plans on average receive an annual employer contribution to their HSA of $838 for single coverage and $1,522 for family coverage. These amounts are about double the amounts reported in 2007 ($428 for single coverage and $714 for family coverage), but this increase may be due in part to a change in legislation enacted by Congress in December 2006 that increased the maximum allowable annual HSA contribution. Although the increased amounts were allowed in 2007, due to the timing of the legislation, employers may not have had time to introduce higher contributions in 2007. When those firms that do not contribute to the HSA are excluded from the calculation, the average employer contribution for covered workers is $1,139 for single coverage and $2,067 for family coverage.
Here are some other key findings related to HSA funding:
* Small employers have significantly increased contributions: From 2007 to 2008, the amount contributed to Health Savings Accounts for workers in small firms increased from $415 to $1,041 for single coverage and from $677 to $1,862 for family coverage. There was no statistically significant increase in HSA contributions for workers in large firms for either single or family coverage.
* Not all employers are making contributions to employees’ accounts: In looking at employer contributions to Health Savings Accounts, it is important to note that not all employers make contributions towards Health Savings Accounts established by their employees. Twenty-eight percent of employers offering single or family coverage through HSA-qualified plans do not make contributions towards the Health Savings Accounts that their workers establish (covering 26% of covered workers enrolled in HSA-qualified plans for single or family coverage).
* But, the number not contributing is quickly decreasing: For single coverage, the percentage of firms that do not make a contribution to Health Savings Accounts established by their employees decreased from 66% in 2007 to 28% in 2008. The report notes, however, that the 2008 percentage is similar to the percentage that was reported in 2006 (37%).
This year, the survey included questions for those employers offering Health Savings Accounts on their opinions of the most successful outcome, biggest challenge, employee satisfaction, and primary reason for offering a Health Savings Account. Not surprisingly, forty-two percent of firms report that in their opinion, lower costs as the most successful outcome from offering a Health Savings Account.
Eighteen percent of firms reported helping employees engage in their health care as the primary reason for offering a Health Savings Account, with small firms (3-199 workers) being less likely (17%) than large firms (200 or more workers) (33%) to report this as their primary reason for doing so.
Health Plan Innovation Take: This report is more evidence that consumer-driven health care in the form of high deductible health plans associated with a tax-favored Health Savings Account has achieved significant acceptance among both large and small employers as a means of controlling the rise in health care costs.
Learn more about Health Savings Accounts at HSA for America.
Posted by Wiley Long at 11:10 AM | Comments (0)
May 18, 2009
More Than Eight Million Now Enrolled in Health Savings Accounts
A new census released by America's Health Insurance Plans (AHIP) finds that Eight million Americans are now covered by Health Savings Accounts, an increase of more than 31 percent since last year. Health Savings Accounts were authorized starting in January 2004. Since then, AHIP has conducted a periodic census of its members participating in Health Savings Accounts.
Another report released found Health Savings Account (HSA) account holders have a broad range of incomes levels across the country. The report, "Estimated Income Characteristics of HSA Account holders in 2008", used a geo-coding technique to estimate the income characteristics of HSA account holders.
"HSA plans provide coverage to a number of consumers of all ages and incomes across the country, and they represent an important choice for employers and individuals when looking at the portfolio of coverage options available," said Karen Ignagni, President and CEO of AHIP.
Key findings from the census include:
* There was an increase of approximately 1.9 million Americans enrolled in an HSA plan since January 2008. Previous AHIP census reports found that 6.1 million were enrolled in January 2008, 4.5 million were enrolled in January 2007, 3.2 million were enrolled in January 2006, and 1.0 million were enrolled in March 2005.
* 30 percent of individuals covered by an HSA plan were in the small group market, 47 percent of individuals covered by an HSA plan were in the large-group market, and the remaining 23 percent were in the individual market.
* A majority of HSA enrollees are covered by Preferred Provider Organization (PPO) products (83 percent) and Health Maintenance Organization (HMO) products (10 percent). In the individual market, almost 92 percent of enrollees in HSA plans were in PPO products, while approximately 85 percent of enrollees in large-group and 76 percent of enrollees in small-group HSA plans were in PPO plans.
* States with the highest levels of Health Savings Account enrollment were California (854,000), Florida (524,000), Illinois (497,000), Texas (476,000), Ohio (464,000), and Minnesota (388,000).
Key findings from the income characteristics analysis include:
* Households with a wide range of incomes hold HSA accounts, with almost half (49 percent) of accountholders living in neighborhoods with median incomes under $50,000 (incomes based on 2000 Census data).
* Average total deposits (including personal deposits, employer contributions, and interest) for all HSA accounts were $1,634 and average total withdrawals (including fees) were $1,063.
For more information about the 2009 census and the income report, please visit www.AHIPResearch.org. For more information about Health Savings Accounts and how to find the best HSA plan for your personal situations, please visit HSA for America.
Posted by Wiley Long at 11:04 AM | Comments (0)
May 13, 2009
Health Savings Accounts Are a Great Way to Save Money on Health Care and Health Insurance
You need to look at your health insurance coverage the same way cost-cutting entrepreneurs do, whether you buy your health care coverage independently or through your employer. Buying coverage in the future won't stop at finding the best price. What you pay for your health insurance coverage will increasingly involve how well you personally manage your health.
According to a report last year by benefits consultant Watson Wyatt, nearly half of the 453 largest U.S. employers currently offer a Health Savings Account that can be used to pay a portion of medical expenses not covered under the companies health insurance plan.
Also, don’t be surprised if your employer or insurer is going to get tougher about you losing weight, quitting smoking or taking part in a monitored exercise plan.
Here are some ideas to help you take the first step in monitoring these costs:
Change your negative healthcare behavior:
Lowering the number on your bathroom scale will not only have immediate health benefits, it will also make your health insurance options and potential out-of-pocket costs more affordable over time. A Stanford University and Rand Corporation study reported that lifetime medical costs related to diabetes, heart disease, high cholesterol, hypertension and stroke among the obese are $10,000 higher than among the non-obese. It added that lifetime medical costs could be reduced by $2,200 to $5,300 following a 10 percent reduction in body weight.
Know what you’re buying:
Whether you buy your Health Savings Account insurance plan through an agent or your employer, insist that they explain exactly what you’re getting for your premium, and where deductibles do and don’t apply. That way, you’ll have a baseline when you buy your own coverage. If you’re purchasing your own HSA insurance policy, compare the premium savings from a higher deductible plan with your usage pattern of health services. What you save can often cover your high deductible.
Always research and discuss the potential cost of a diagnosis:
If your physician diagnoses a condition that requires tests, prescription drugs, a hospital stay or ongoing therapy, ask polite but detailed questions about what you’ll be charged, from the doctor’s bills to ongoing ancillary costs associated with treatment. Ask the doctor or his office manager if discounts can be negotiated through cash payments or other means. You also need to be careful that you’re not being charged a rate for uninsured patients when you are simply going to paying for all or part of the bill to get to your deductible. Last, consider asking doctors for generic options and samples of prescription drugs to extend your savings.
Make sure your exact spending is reducing your deductible:
Keep a binder or a filing system to monitor how this year’s out-of-pocket spending is reducing your Health Savings Account deductible. Your insurer’s total may not always be accurate or up-to-date. Also, make sure you understand which procedures are offered through your HSA plan that will be paid even though you haven’t paid up your deductible.
Check local pricing resources:
In non-emergency situations, you should always compare prices on treatments. Check with local medical boards and state health officials to see if they have online databases on costs for various medical procedures. Also, if there is a support group for your condition, talk to members about what they paid locally for care.
Be smart about emergency and non-emergency health visits:
Emergency-room visits tend to cost $300 to $1,000 compared with $150 at an urgent-care center and $35 to $45 at a convenience-care clinic in a drug store or some other location. First, make sure the alternatives to hospital emergency room care are acceptable for your illness. Write yourself a note at some point to check out these options in your community so you understand what they offer, what their hours of business are, and under what conditions you’d choose them. In particular, make sure the facility and the provider are in your health plan's network so whatever you pay out-of-pocket counts toward your deductible. Also rely on your insurer's 24-hour advice hotline for guidance on where to go for care. Either tape that call or keep a written record of it in case you have a claim denied.
Talk to a financial advisor about planning for long-term care:
If you or a loved one are diagnosed with a chronic illness, that’s a financial issue that requires a plan. As tough as it may be to focus on money issues at a stressful time, make an appointment with a tax professional or a Certified Financial Planner professional to discuss affordability options that will safeguard your assets, including Health Savings Accounts that can backstop out-of-pocket costs on high-deductible policies.
Learn more about Health Savings Accounts at HSA for America
Posted by Wiley Long at 10:53 AM | Comments (0)
May 08, 2009
Health Savings Accounts Frequently Asked Questions
One of the best way to save money on your healthcare costs is to use a Health Savings Account to supplement your current health insurance plan. Your Health Savings Account can also have your money working for you by earning interest, along with saving money on your health care costs. And, you can save your Health Savings Account money tax-free.
If you have a high-deductible health insurance plan and have not yet open a Health Savings Account, you need to learn more about the advantages of Health Savings Accounts. Check out these Top 10 Health Savings Account Frequently Asked Questions to get a jump-start on understanding Health Savings Accounts:
1. How do I start a Health Savings Account (HSA)?
First, you have to have a qualifying health insurance plan. A qualifying health insurance plan is one that carries a high deductible. Each year what is considered a high-deductible health insurance plan changes, but generally it would be a deductible that is not considered in the normal range for a health insurance plan. If you think you have a high-deductible health insurance plan then you can contact your employer, health insurance company, or a number of private insured banks and credit unions locally or online to find out about setting up a HSA. Sometimes employers help contribute to Health Savings Accounts so make sure to see if yours does.
2. What if I switch jobs, do I lose my money?
No. The Health Savings Account is yours. Whatever money you contribute to your HSA you keep, just as you would in a savings account. Even if you don't use all your HSA money in one given year, the money will just roll-over to the next year for use.
3. Do I pay taxes on the money before it is put into my Health Savings Account?
No, the money goes into your HSA account tax-free if your employer will set-up pay check deductions for you. If not, then when you prepare your federal income taxes you will be able to take a deduction for the money you contributed to your HSA that year. When you withdraw your Health Savings Account money to pay for any qualifying expenses, it is withdrawn tax-free.
4. Can I have some examples of HSA qualifying expenses?
Here are some examples of HSA qualifying expenses: prescription medicines and eye glasses, office visit co-pays, chiropractors, dentists, orthodontists, over-the-counter meds such as aspirin and antacids, birth-control (over-the-counter or prescription), and laser eye surgery to name a few. There are many more things that you can use your money for so when you get a HSA plan, you will need to ask for a list of covered expenses.
5. What happens if I lose my health insurance?
Once you have money in your HSA, you can continue to use it even if you do not have a high-deductible health insurance plan anymore, but you cannot keep contributing money to your health savings account.
6. Can I use my HSA money to pay for my health insurance premiums?
You can use your HSA money to pay for your health insurance premiums while you are collecting federal or state unemployment benefits. You can also use your HSA money to pay for COBRA premiums.
7. What if I need medical care in another country... can I use my HSA money there?
Yes, your HSA money can be used for the same medical expenses anywhere and in another country.
8. How much can I contribute to my HSA account?
That changes yearly but as of 2009 a single person could contribute up to $3,000 per year and a family could contribute up to $5,900 per year.
9. Can my HSA money be invested?
Yes. Your health savings account money can be invested similar to a 401K.
10. When I die, do I lose my HSA money?
No. You can name a beneficiary to receive your health savings account money.
Learn more about Health Savings Accounts at HSA for America.
Posted by Wiley Long at 10:36 AM | Comments (0)
May 05, 2009
What Becomes of Your Health Savings Account if You Get Laid Off
The good news for people with Health Savings Accounts is they don't need to panic about their healthcare if they get laid off. The money in your Health Savings Account remains yours even after you lose or leave your job, unlike funds in a flexible spending account. So you don't need to rush to the dentist or eye doctor to drain your Health Savings Account before your job is terminated.
You can keep the money in your current Health Savings Account, or you can roll it over to another HSA administrator without having to pay taxes on the move -- a lot like an IRA rollover. The money can then continue to grow in the Health Savings Account and can be used tax-free for future medical expenses in any year... even if you no longer have a high deductible health insurance policy.
But you must have a high deductible health insurance policy to make new contributions, whether you continue your former employer's plan through COBRA or you purchase your own high deductible policy after you leave your job. A high deductible policy is a good option if you've been laid off because it can help keep your premiums low. If you get another job without a high deductible policy, you won't be eligible to make new contributions to your HSA.
You can make HSA contributions at any time during the year, and you have until April 15, 2010, to make your 2009 HSA contributions (and remove any excess contributions). The money you put into an HSA is tax-deductible and grows tax-free for future medical expenses.
HSA money usually can't be used to pay for health insurance premiums, but there's an exception for people who lose their jobs: You can use the HSA money for health insurance premiums (whether for COBRA coverage or any other health insurance) if you're receiving unemployment compensation. That can be a way to pay your premiums with tax-deductible money.
Learn more about Health Savings Accounts at HSA for America.
Posted by Wiley Long at 08:58 AM | Comments (0)
May 01, 2009
Are Health Savings Accounts the Right Tool for You?
Health Savings Accounts might not be for everyone, but for the right individuals and businesses, they are a way to control health insurance costs.
The use of Health Savings Accounts and high-deductible health insurance policies can reduce costs by 20 to 30 percent, Cris Ruiz told about 50 human resource managers and others at a meeting sponsored by UMB Bank.
Ruiz is vice president of UMB Healthcare Services in Kansas City. The UMB division acts as an administrator for Health Savings Accounts.
Businesses and individuals have to meet certain requirements to use Health Savings Accounts, Ruiz and Dennis Triplett said. Triplett is CEO of Healthcare Services.
For example, they said, a federally qualified high-deductible health insurance policy must be offered with Health Savings Accounts, the person must not be covered by other insurance, and limits are set on contributions to Health Savings Accounts.
The benefits of Health Savings Accounts: They are portable, meaning an employee has access if he changes jobs or becomes unemployed. There's no "use it or lose it" provision, as there is for flexible spending plans. The money in the account can be invested in different ways.
Triplett said that about 6.1 million Health Savings Accounts existed at the end of 2007. He expects that number to be about 8.5 million in a report expected in the near future.
Susan Smith of Gossen Livingston Architects said her company is offering Health Savings Accounts for the first time. She expects 10 to 20 percent of the company's 75 employees to choose an HSA over a traditional plan.
That's about what can be expected in the first year, Ruiz said.
Communication -- and lots of it -- is vital if employers want to successfully offer Health Savings Accounts, she said.
Employees and employers must understand how Health Savings Accounts work and must have tools to evaluate which option is best for them. And they should be viewed as a long-term solution, not as something to try for a year and drop.
"This may not be a solution for your demographics," she said.
But if they're appropriate, Health Savings Accounts can be beneficial for employer and employee and put the responsibility for health decisions where it belongs -- in the individual's hands.
Learn more about Health Savings Accounts at HSA for America.
Posted by Wiley Long at 11:19 AM | Comments (0)