Health Savings Account Blog

The Individual Development Account is designed to act like a Health Savings Account for Access to Healthcare Network members. Using the account, members will be able to contribute at least $25 each month that they can earmark to pay for their upcoming health care expenses, according to Sherri Rice, chief executive officer of AHN. A major benefit of the program is that contributions made by members will be matched dollar-for-dollar up to $500 per year.

With the matching component of the Individual Development Account plan, participants will receive even further savings on their health care expenses. AHN members already receive significant savings through the AHN program. For example, while the average rate for an emergency room visit is $10,000, AHN members can receive emergency room services for as little as $400.

"It's another way to give people freedom and responsibility with their own health care," Rice said. "It's really groundbreaking, cutting-edge stuff and we're doing it right here in little old Reno, Nevada."

According to Nancy Brown, a community development manager at Charles Schwab Bank who helped with the creation of the program, Individual Development Accounts have actually been available in the U.S. for some time. However, traditionally, Individual Development Accounts are used for asset development, especially home ownership, business development, or education. The AHN program is the first Individual Development Account program that will be used specifically for health care expenses, which is considered asset preservation, Brown said.

Already, almost $100,000 has been raised to help fund the program, thanks to donations from Charles Schwab, Wells Fargo, and the Federal Home Loan Bank of San Francisco. In order to participate in the program, members must take free financial literacy classes, which provide a way to help participants be financially aware and prepared for the future.

"An often overlooked component of community development is the health of its members," Brown said. "Twenty-five percent of people filing for bankruptcy cite illness and injury as the main reason. Too many people are piling up medical debt on high-interest credit cards and risking financial security because they have had the misfortune of getting sick."

In the midst of the current economic climate, AHN enrollment has increased from about 50 people per month when it started two-and-a-half years ago to about 250 people a month today, according to Rice. The program has more than 4,500 members, many of whom are working individuals and families who have incomes too high to qualify for Medicaid but who don't receive health insurance through their employers.

"Take somebody who makes $13 an hour -- they're working as hard as they can but don't get insurance through their employer, so what are they supposed to do?" Rice said. "AHN exists for that hardworking person who has no other option."

While AHN does help to decrease health care expenses, AHN is not health insurance. The program’s "shared responsibility" model requires members to pay for services at the time of their visit. According to Rice, if members do not participate according to the terms of the plan, their membership may be discontinued.

"There are 75,000 uninsured people in Washoe County alone -- and that doesn't even include the underinsured," Rice said. "Our members include people with cancer and people with children who have disabilities. We all know all the positive things that can come from someone getting healthcare sooner rather than later."