Health Savings Account Blog

During the creditunions.com Webinar, panelists Marie Gloria, Health Savings Account Product Manager for Patelco Credit Union ($4B, San Francisco, CA), and Rhonda Drexler, Financial Services Manger for CoVantage Credit Union ($740M, Antigo, WI), focused on the importance of education, positioning, and competition with regards to Health Savings Accounts. They also shared best practice strategies for actively engaging member participation.

Here are some of the key take-aways from that Webinar:

1. Know the Health Savings Account Product

Health Savings Accounts are types of savings accounts that are primarily dedicated to providing funds for qualifying medical expenses. Moreover, there are tax advantages for contributions participants make to their Health Savings Accounts.

There is a wide variety of options for Health Savings Accounts and their associated high deductible HSA plans. Therefore, each union member may require a different type of Health Savings Account and corresponding health insurance plan. During the Webinar, Gloria stressed the important role that unions play in providing union members with reliable information about Health Savings Accounts and insurance plans that they may use. One of the best ways for unions to stay informed about changes to Health Savings Accounts is to be sure that they read the most current Health Savings Account literature. Also, to communicate important information to union members, Gloria suggests that unions hold seminars for members and remain available over the phone and email to answer questions from members.

One of the best examples of credit unions that meet their market needs for Health Savings Accounts is CoVantage. CoVantage has more than 57,000 members across 14 counties in Wisconsin and Michigan. A startling 65% percent of CoVantage's employees have Health Savings Accounts, ensuring that they are able to share their personal experiences with customers.

"The main thing about CoVantage and what we pride ourselves on…is getting to that member and helping them out as much as we can to help them be financially stable," Drexler said during the Webinar. "HSAs are a great way for us to get into that area."

2. Know the Health Savings Account Market

Credit unions must know their markets, said Gloria. In order to get to know their markets better, Gloria suggests that credit unions develop unique strategies that will work for them, which may include member surveys or making phone calls through a call center.
CoVantage focuses on selling Health Savings Accounts one person at a time through personal experiences within their communities. Moreover, employees at all levels of CoVantage give presentations about their products, including the Executive Vice President and Customer Service Representatives. In order to establish connections with the community, the credit union engages in activities throughout the day and night, which include visits during employer insurance meetings and providing free presentations to medical providers. Moreover CoVantage maintains a presence within the community at networking meetings, Chamber of Commerce events, and after-hours business events.

To help raise awareness of the union and its products, Drexler suggests that other unions model their community outreach around CoVantage’s example by visiting work sites, attending insurance meetings, and participating in networking events. Most importantly: only sell Health Savings Accounts to individuals and families who will actually use them.

3. Know the Health Savings Account Competition

Finally, the Webinar panel recommends that credit unions familiarize themselves with the competition by being aware of the services, products, and savings potential that other institutions are offering. Gloria and Drexler both agree that even if the competition looks fierce, credit unions have an advantage: the simple structure and philosophy of unions gives them a competitive advantage over other instructions, especially when it comes to fees that are charged by the competition. Without those fees, it can be easier for credit unions to suggest additional products after members have come aboard with Health Savings Accounts.

Moreover, CoVantage reports that very few Health Savings Accounts are closed, according to Drexler. When Health Savings Accounts are closed, the primary reason tends to have more to do with members leaving their jobs than with the services or products provided by the credit union.

Ultimately, when credit unions maximize their Health Savings Account portfolios, they will have a healthier credit union from both a physical and a fiscal perspective, according to the Webinar panelists.