Health Savings Account Blog

Also, United Healthcare found that enrollment rates were highest among employees of small businesses (defined as having one to 99 employees) and lower-income individuals (defined as earning less than $25,000 per year) at 74 percent and 64 percent, respectively.

Health Savings Accounts deliver value across all consumer segments because individuals can take the money they save in lower premiums and use it to fund a health account. This activity is helping create more engaged consumers who better understand, and plan for, their health care expenses. Prior research from United Healthcare found that members of a consumer-driven plan received preventive and evidence-based care at rates equivalent to, or in many cases higher than, members of traditional plans.

This latest research affirms our belief that Health Savings Accounts have broad appeal for many health care consumers, regardless of income, age or employer environment, said Meredith Baratz, vice president of Market Solutions at United Healthcare. More employers are realizing the value of health savings accounts as well, because Health Savings Accounts enable businesses to help their employees play a more active role in their financial and physical well-being.

According to United Healthcare data, employer funding was a key driver in Health Savings Account enrollment rates. About two-thirds of employers provide funding to the Health Savings Account. Regardless of funding level, when an employer contributed to the Health Savings Account, 86 percent of consumers opened an account, compared with only 27 percent when the employer did not contribute. However, employee self-funding was strong regardless of employer size, especially among employees at mid-sized companies (defined as having 100 to 500 employees).

Additionally, United Healthcare found that account-opening activity was consistent across age, gender and life status. Nearly 60 percent of customers eligible to enroll in an HSA plan were singles, families and younger couples. Also, 88 percent of account holders at the end of 2006 had account balances greater than zero, illustrating Health Savings Accounts long-term savings potential.

United Healthcare analyzed both health plan design and financing to assess whether all consumer segments are taking advantage of the opportunity Health Savings Accounts present to plan, save and pay for health care.

Today, more United Healthcare customers are enrolled in Health Savings Accounts than are enrolled in health reimbursement accounts (HRAs). This reflects the continuing rise in popularity of Health Savings Accounts, which have been available for four years, compared with HRAs, which have been available twice that long. United Healthcare also offers Health Savings Accounts to individuals and families not covered by employer-sponsored plans through its Golden Rule Insurance Company.