Health Savings Account Blog

April 29, 2012

J.P. Morgan Releases Third Annual Health Savings Account Report

The results of J.P. Morgan's Treasury Services business third annual 2011 Health Savings Account Snapshot report have been announced. They are a full-service provider of cash management, trade finance, treasury solutions and escrow services.

The report provides a view of how Health Savings Accounts have been used by J.P. Morgan Chase HSA holders. Having a Health Savings Account (HSA) has been shown to help increase savings and pay for health care expenses.

Over the past seven years, the average HSA balance reached its highest level (nearly $1,547 per account) in 2011. This is four percent higher than the average account balance noted in 2010.

The average HSA contribution rose by 1.5 percent from $1,884 in 2010 to $1,912 in 2011. When it comes to savings on annual taxes (assuming a 28-percent federal income tax rate), HSA owners average savings of $500. Average account balances are increasing by $500 per account per year. Seventy-four percent of HSA holders contributed more to their account than they spent in 2011.

Elena Szymanski, Executive Director of J.P. Morgan's Treasury Services, said, "For the third consecutive year, we have seen a significant increase in the adoption of Health Savings Accounts and, more importantly, they continue to be used as an effective consumer tool for managing healthcare expenses.”

If you want to get tax deductions and spend tax-free dollars on qualified medical expenses, an HSA remains a valuable option. The full version of J.P. Morgan's HSA Program Snapshot is available at: http://www.jpmorgan.com/visit/hsasnapshot.

As of February 2012, J.P. Morgan administers more than 900,000 Health Savings Accounts with over $1.5 billion in deposits. J.P. Morgan administers HSA programs in conjunction with many of the largest health insurance companies in the United States as well as Fortune 500 companies for small businesses and individuals across the nation.

Posted by Wiley Long at 10:41 AM | Comments (0)

April 24, 2012

Health Savings Accounts Hit Record Growth

Recently, the Bank of America announced a record in Health Savings Accounts as they hit 34-percent growth in 2011. That’s 50,000 more accounts last year than seen in previous years. The growth is linked to increases in Health Savings Account (HSA) use among employees of existing company clients and new relationships built with individuals and employers.

Bank of America offers Health Savings Accounts, Health Reimbursement Arrangements and Flexible Spending Accounts. Nationwide, more than 600,000 individuals and more than 2,000 companies took advantage of these accounts via the BoA. Among these three types of plans, Health Savings Accounts are the fastest growing, with almost 200,000 accounts and more than $300 million in collective account balances.

Kevin Crain, the head of Institutional Retirement and Benefit Services for BoA Merrill Lynch, said that “The use of Health Savings Accounts is rapidly increasing, based in no small part on the rising cost of health care to employers and employees alike.” He added that many of their corporate clients in the large and middle markets are offering consumer-driven HSA plans to expand the health coverage they are offering their employees.

If an employee has an HSA, he or she is allowed to make pre-tax contributions to pay for qualified health care, such as doctor visits and prescriptions. Contributions made by the employee are tax deductible.

You need a high-deductible health plan to start an HSA. The account is owned by the employee or individual, earns tax-free interest, the HSA balance rolls over every year, and it moves with the employee whether he or she quits or change jobs.

Crain added that aside from the tax benefits, HSA plans give individuals more control over health care costs. They have the option to let the balance grow so they can use it for retirement. Health Savings Accounts motivate people to be more proactive when it comes to their health and lifestyle decisions.

This year, the IRS increased the annual HSA contribution limit for individuals and families. Individuals are allowed to contribute up to $3,100 (an increase of $50 from last year) and families can contribute up to $6,250 (an increase of $100 from last year).

Last year, the average HSA contribution to BoA was $2,016 with employers contributing more than 20 percent of this total average to their employees’ accounts. Since the start of 2010, the average HSA account balance has grown more than 10 percent, or more than $1,600 per person. This shows that HSA policyholders are saving using these accounts and letting it grow for future health care expenses.

Justin Raniszeski, Health Benefit Solutions executive for BoA Merrill Lynch said, “Future health care costs and funding retirement consistently rank among individuals’ top financial concerns, with health and wealth becoming two sides of the same coin.” He added that using multiple tax-advantaged savings accounts can help build savings that can help during times of great need.

Posted by Wiley Long at 11:18 AM | Comments (0)

February 05, 2012

Do Health Savings Accounts Satisfy Customers?

J.P. Morgan's Treasury Services business recently announced the results of its 2011 Health Savings Accounts (HSA) customer satisfaction survey.

According to the survey, nearly eight out of 10 HSA holders were “very satisfied” with their HSA. The results indicated that satisfaction increased among account holders who used their Health Savings Accounts more frequently and among longer-term account holders.

As for HSA education, more than 60 percent agreed that sample lists of qualified medical expenses was the most helpful resource followed by interactive tools, such as HSA calculators. Two out of three said that they were "very likely or likely" to recommend a HSA to a colleague, friend or family member.

Once you have a high-deductible health plan that is compatible to work with a HSA, you are eligible to open this type of savings account. HSA plans allow you to deposit tax-deductible funds that you can use to cover qualified medical costs until your deductible has been met. The money left in your account at the end of the year rolls over to the next year and keeps growing with tax-free earnings.

Consumers are getting a Health Savings Account because it helps reduce federal and state taxes in almost all states. Contributions placed in your HSA are tax-deferred and withdrawals are tax-free when used to pay for qualified medical bills.

Posted by Wiley Long at 10:56 AM

November 10, 2011

Health Savings Accounts Offered By Bellco Credit Union

With millions of consumers worried about the rising cost of health care and how medical bills can make a huge impact on their wallet, Bellco Credit Union announced that they will offer Health Savings Account services to help consumers manage health care costs.

A Health Savings Account (HSA) provides a smart way to save for both day-to-day and future medical expenses. If you are in a high tax bracket, you can definitely benefit from an HSA plan. You can lower your annual federal taxes and even your state income taxes in almost any state.

With HSA Plans, you don't even need to itemize deductions because your HSA contributions are considered "above the line" deductions and you can get a deduction for your entire HSA contribution. If you don't need it for health care, it will earn tax-free interest and grow like an IRA.

You can use your HSA balance to pay for qualified medical expenses, ranging from acupuncture to your childrens' dental care. You also have a range of options so you can invest your HSA funds in with as little or as much risk as you're comfortable. Investments range from interest-bearing savings accounts to stocks.

HSA plans have deductibles starting at $1,200 for individuals or $2,400 for families. If you just want to give this system a try, start with a deductible that you could easily manage if necessary, and later switch to a plan with a higher deductible after your HSA balance has grown. Here on our website, it's quick and easy to see rates for HSA insurance with different deductibles so you can conveniently shop whenever you're thinking about increasing the deductible.

Posted by Wiley Long at 10:57 AM | Comments (0)

September 01, 2011

Health Savings Accounts Are Becoming Mainstream Healthcare Options

HSA Bank's 2011 Consumer Benchmark Survey shows Health Savings Accounts are becoming mainstream healthcare options.

It turns out that people with HSA-compatible health plans have similar characteristics, like age, health status and income. Most (59.8 percent) were at least 45 years old.

Nearly 95 percent of all Health Savings Account owners described themselves as having average or better health. Less than half (42.1 percent) had annual incomes between $50,000 and $100,000.

People in this income range have the means to cover medical care until deductibles have been met. High-deductible plans purchased this year cover recommended preventive health care services without requiring policyholders meet the deductible. This may make HSA Plans more appealing to people in lower income ranges. For specific premium costs, run our instant quotes.

Posted by Wiley Long at 10:40 AM | Comments (0)

August 24, 2011

Health Savings Account Balances Blooming This Summer

Employers are leaning toward high-deductible health plans for employee benefits, and Health Savings Accounts (HSA) balances increased this June.

With the current recession, firms have reduced their workforce and the benefits they offer employees. Some companies have been able to maintain health benefits for workers via high-deductible plans combined with Health Savings Account. Commonly known as an HSA, this form of savings account offers tax-advantages in exchange for saving to cover medical costs.

According to the Denevir Group, LLC, balances held in Health Savings Accounts increased to $11.7 billion this summer, which is a 31-percent increase over last year. Likewise, the total number of Health Savings Accounts jumped another 28 percent from the same time last year. That resulted in approximately 6.3 million Health Savings Accounts.

Last year, the average HSA balance was around $1,640. This year it's climbed to $1,845. Total HSA assets are expected to reach $13.4 billion by the end of this year.

Whether you’re a business owner or self-employed, investing in an HSA could save you money. Investing in HSA Plans can cut the cost of health care coverage, reduce taxes and give tax-free earnings. Consultations can be arranged to help you compare your HSA options.

Posted by Wiley Long at 10:32 AM | Comments (0)

June 13, 2011

Health Savings Accounts Used By More U.S. Citizens

U.S. citizens are relying more on Health Savings Accounts, according to a new report from J.P. Morgan Treasury Services. Their Health Savings Account (HSA) Program Snapshot portrays usage patterns and trends.

J.P. Morgan manages more than 700,000 Health Savings Accounts with a combined total exceeding $1.1 billion.Their new report indicates that U.S. citizens are increasingly leveraging Health Savings Accounts to use pre-tax dollars for current medical expenses, as well as investing to pay for future health costs.

The 2010 report showed that the average Health Savings Account balance is $1,494 up seven percent from 2009. Average contributions were only slightly up from $1,816 in 2009 to $1,884 in 2010. Seventy-three percent of account holders contributed more than they spent per month in 2010. In 2009, that percentage was slightly lower at 68 percent.

With the average account holder age 43, they averaged spending $5 more from their Health Savings Account each month of 2010 as compared to 2009. The average annual Health Savings Account distribution was $1,377 in 2010 and $1,305 in 2009.

J.P. Morgan's Managing Director David Josephs said that: "J.P. Morgan has been administering Health Savings Accounts since their inception, and we are uniquely qualified to deliver insight into Health Savings Account account holder activity and behavior. We expect employers who are offering Health Savings Accounts for the first time, or those who already have programs in place, to use J.P. Morgan's Health Savings Account Program Snapshot as a benchmark for comparison as they review health plan options for the upcoming enrollment season."

Posted by Wiley Long at 12:27 PM | Comments (0)

April 22, 2011

Investments In Health Savings Accounts Now Exceed $10 Billion

According to research by Devenir, Health Savings Accounts exceeded $10 billion in total deposits by the end of 2010. By 2015, Health Savings Account balances are expected to reach $61 billion in assets.

To take advantage of the benefits offered by these accounts, you need one of the qualified high-deductible health plans. Deductibles on HSA plans range from $1,200 to $5,950 for singles and between $2,400 and $11,900 for families.

A Health Savings Account (HSA) plan allows you to deposit tax-deductible funds into an HSA that you can use to cover qualified medical costs until your deductible has been met. If you do not need to use the contributions for that year, your money just carries over to the next year and continues to grow quickly with tax-free earnings.

Since the insurance plans that work with Health Savings Accounts have high deductibles, the premiums are typically 30 to 40 percent less than premiums for standard co-pay plans. That can definitely help you save money on premiums and you can also save by owing less income tax. With premiums scheduled for regular increases, the chance to keep your premiums low may be worth "its weight in gold."

Learn more about Health Savings Accounts and HSA insurance plans on our website at: http://www.health--savings--accounts.com/

Posted by Wiley Long at 11:20 AM | Comments (0)

April 05, 2011

Considerable Increase in Health Savings Account Clients Reported by Fidelity Investments

Fidelity Investments® recently reported that there was a very significant 52% increase in clients getting Health Savings Accounts last year. This increase was attributed to clients taking advantage of the tax deferred medical account service being offered by having an HSA plan. According to William Applegate, the vice president of HSA products of Fidelity Investments, consumers are utilizing HSA plans to manage the continued increase of medical costs.

Analysis showed that there are different contribution rates as well as spending behaviors noted from Fidelity’s Health Savings Account participants. Nearly half of them had at least $2,500 as their contribution and 17% had more than $5,000. The maximum Health Savings Account contribution allowed for individuals is only $3,050 and $6,150 is allowed for families. The participants were also categorized into three categories: Spenders, Hybrids, and Savers. Savers use less than 10% of their annual HSA contributions and invest the remaining balance for future medical expenses while Spenders use up to more than 90% of their contributions.

To be able to take advantage of the benefits of an HSA plan, it must be coupled with a high-deductible health plan. High-deductible health insurance costs less than the traditional low-deductible coverage because the insurance company does not have to process and pay claims for routine, low-dollar medical care. Having an HSA with an HDHP could significantly lower heath insurance premiums. These high deductibles start at $1,200 for individual coverage and $2,400 for family coverage.

HSA plans are made available through many trusted insurance companies such as Aetna HSA, Blue Cross Blue Shield HSA, Cigna HSA, Humana HSA and many more. Just as with other forms of health insurance, you can compare premiums online with instant quotes on the high-deductible health plans that are qualified to work with an HSA.

Posted by Wiley Long at 09:24 AM | Comments (0)

March 01, 2011

HSA Bank Tops $1 Billion in Health Savings Account Deposits

With the popularity of health savings accounts skyrocketing, HSA Bank has passed the $1 billion milestone in Health Savings Account (HSA) deposits.

As a division of Webster Bank, HSA Bank has devoted all of its resources to the administration of health savings accounts since 1997. It has attracted both individuals and Fortune 500 companies.

In addition to providing health savings account services through HSA Bank, Webster Bank also owns the asset-based lending firm Webster Business Credit Corporation. The equipment finance firm Webster Capital Finance is also owned by Webster Bank.

It's the exclusive attention that has made HSA Bank one of the most experienced HSA administrators and most user friendly. HSA Bank has developed flexible programs, such as online access to accounts, for both employer and individual customers. The bank also provides support to its business partners.

Posted by Wiley Long at 05:23 AM | Comments (0)

February 15, 2011

How To Choose A Health Savings Account Provider

Health savings accounts can help to curb premiums while offering a tax break, so how can consumers find a provider for their health savings account (HSA)? Banks and other financial institutions, along with health insurance providers, can show HSA owners a variety of options, but the HSA owners needs to determine priorities.

When looking for institutions that offer health savings accounts, compare monthly maintenance fees, set-up fees and transaction fees. It's just as important to compare the interest rate earned on account balances and your options to access funds.

Will you have online access to your account and statements? What about online bill pay? Another service that can be very helpful is having a debit card. Balance the services you want from your health savings account provider against fees on the account to narrow down your choices.

Once you have your HSA set up, remember to be careful to only use it for qualified health care expenses. An HSA allows you to make many expenses such as acupuncture, co-pays, chiropractor services, dental services, homeopathy, prescriptions and many other health care expenses tax deductible. With an HSA, you can spend less on health insurance premiums and taxes. Our website provides in depth information about how to find an HSA administrator and getting the greatest benefit from your HSA.

Posted by Wiley Long at 02:23 AM | Comments (0)

February 02, 2011

Health Savings Accounts Offer New Nationwide Broker Program

As one of the largest administrators of Health Savings Accounts, J.P. Morgan Treasury Services launched an HSA broker program. It will provide brokers and third-party HSA administrators with dedicated service and support.

That includes access to administrative, education, marketing and sales tools to aide brokers. J.P. Morgan also provides detailed cost estimates and statistical data along with updates regarding how HSA regulations are changing.

Small to mid-size businesses can set up health savings account programs within just five days with J.P. Morgan's assistance. It also offers more customizable plans for larger companies that deal with more complex and extensive benefit situations.

One of the brokers working with J.P. Morgan during the pilot phase of this program is the Denver-based Gundzik & Associates, Inc. They've offered clients employee and executive benefits products since 1973. Michael J. Gundzik says, "Teaming with J.P. Morgan enables me to offer a quality brand to clients and the ability to pair the HSA with High Deductible Health Plans from any insurance company. My clients don't have to switch HSA administrators just because they switch HSA insurance plans. I can count on J.P. Morgan's broker service unit to answer any questions I have on enrollment or funding, and help get my clients up and running in just a few days."

Posted by Wiley Long at 10:58 AM | Comments (0)

January 10, 2011

Health Savings Accounts Grow 30 Percent at Chase

At Chase, health savings accounts grew by 30 percent during a single year. More than 115,000 health savings accounts and $220 million in deposits were added, and Chase has more than 500,000 HSA owners holding a combined balance of $740 million.

This health savings account growth has been fueled by Chase's partnerships with national and regional HSA health insurance plans. These HSA programs are marketed directly to employers, ranging from Fortune 500 companies to small businesses.

To attract new health savings account customers, the managing director David Josephs says, Chase has been "Upgrading features such as online bill pay, automatic funds transfers for investing, and enhanced reporting for employers provides increased flexibility for account holders and clients."

Chase also developed a comprehensive "adoption" kit that companies can use to explain health savings accounts to employees, including suggestions for maximizing tax savings and negotiating federal and state tax requirements. Chase customers may log on to a secure website to move money directly from checking or savings accounts to contribute to their HSA. Health care expenses may also be paid online directly from their HSA. See more about how HSA plans work right here on our website.

Posted by Wiley Long at 01:28 AM | Comments (0)

December 21, 2010

PayFlex Offers Comprehensive Health Savings Account Support

A leading administrator for employee benefit programs is expanding its support for health savings accounts and offering a new paradigm. PayFlex offers a comprehensive solution by providing all of the technologies and services that are key to administering a health savings account (HSA).

PayFlex will extend its Health Savings Account offering to any financial institution. That enables employers and HSA owners to choose their financial institution rather than have to use a designated custodian. Banks and HSA health plans may also select the PayFlex HSA to take advantage of PayFlex's reconciliation expertise.

Dubbed a "custodian-agnostic" product, this new model offers greater flexibility and control to both employers and insurers. The new PayFlex HSA platform can provide consumers tax-advantaged HSA plans that may be combined with qualified high-deductible health insurance.

PayFlex's comprehensive support includes an account investment platform, account reconciliation, call center support, debit cards, an easy-to-use Web interface, an integrated reimbursement payment solution, and its IRS compliance expertise. It has also added a new payments platform to process bill payments and will send out individual statements. For further information about HSA plans and HSA Administrators, just visit out website at: http://www.health--savings--accounts.com/

Posted by Wiley Long at 09:17 AM | Comments (0)

November 10, 2010

Wells Fargo Health Savings Accounts Add New Features

More companies are switching from traditional health plans to health savings accounts. The National Business Group on Health projects that 61 percent of large employers will offer health savings account plans in 2011. As one of the leading providers of health savings accounts, Wells Fargo & Company has made product enhancements for both customers and employers.

Customer can now make free withdrawals at more than 12,000 Wells Fargo and Wachovia ATMs nationwide. They can make deposits, withdrawals, and transfers at all Wells Fargo banking stores. In addition, Wells Fargo has increased its mutual fund choices and provides more long-term options. The updated Wells Fargo Visa(R) HSA debit card is now accepted by all merchants that accept Visa debit cards.

Employers can benefit from improved contribution options, such as ACH direct contributions. They also have secure online access to new Census, contribution, and enrollment reports. Wells Fargo has also expanded its library of employer educational materials and offers full-service support for annual enrollment.

As a Wells Fargo customer, Community Health Partnership, Inc. of Eau Claire, Wisconsin investigated the health savings account option. Its Benefits Administrator, Patricia McCown, says, "We did our homework and found that a high deductible health plan combined with an HSA program could help us control costs." She adds that, "Wells Fargo's HSA program stood out because of its cost efficiency, strong customer support and ease of administration."

Posted by Wiley Long at 10:42 AM | Comments (0)

October 04, 2010

Health Savings Accounts Are Still Popular With Health Care Reform

With health care reform pushing employers to cover their workers with health insurance, Health Savings Accounts are attracting new interest. The HSA Bank of Wisconsin and UMB Financial Corp. in Missouri report increased interest among employers.

Until health care reform was actually signed into law, many employers were waiting to see how Health Savings Accounts would fare. It now appears that these accounts will remain viable options with valuable advantages. A UMB representative predicts growth rates of 30 to 35 percent for UMB's Health Savings Account business.

Between June 2009 and May 2010, HSA Bank's account total grew by 51,000. By the end of May in 2009, HSA Bank held $905 million in 311,000 health savings accounts. And, there's even more growth potential now that health care reform is adding preventive medical care to high-deductible health insurance plans independent of the deductible.

With an estimated 32 million more Americans expected to take advantage of state health insurance exchanges in 2014, financial institutions are moving toward partnerships with insurers to promote Health Savings Accounts.

You can learn more about Health Savings Accounts through our website on combining a Health Savings Account with a high-deductible HSA health insurance plan. See how the experts make the most of Health Savings Accounts.

Posted by Wiley Long at 10:36 AM | Comments (0)

September 11, 2010

Health Savings Accounts: Now It's Faster Than Ever To Establish An HSA

HSA Bank has streamlined how individuals and small groups can enroll in a Health Savings Account (HSA). By simplifying the enrollment process into four steps, HSA Bank representatives say they have cut the time needed to set up your HSA in half.

As president of HSA Bank, Kirk Hoewisch says, "We strive to make owning an HSA as easy for our accountholders as possible, starting with the enrollment process." Many individuals and small group employees choose to use the bank's Individual Online Enrollment website.

Besides making it easier to enrollment in HSA plans, HSA Bank has also updated its Individual Online Enrollment website with enhanced capabilities. You can see an Individual Online Enrollment demonstration at www.hsabank.com/ioedemo.

You can also learn how to make the best use of these tax-advantaged savings accounts at HSA for America. You'll find a rich online library explaining how HSA plans allow you to earn interest tax-free, how to reduce your taxable income and how to make your medical expenses tax deductible.

Posted by Wiley Long at 10:03 AM | Comments (0)

January 21, 2010

Are Health Savings Accounts Better than Flexible Spending Accounts?

Are you trying to get a handle on the many different employer-sponsored healthcare options that are currently available? If so, you’re not alone. In fact, we get many questions about the difference between two very popular healthcare plan options: flexible spending accounts and Health Savings Accounts. These two plans are similar, but Health Savings Accounts tend to give employees more control and financial benefits than the flexible spending account option. Here’s what you need to know about Health Savings Accounts:

Health Savings Accounts are savings accounts that employees can open with any institution that also offers IRAs. A Health Savings Account also operates similarly to an IRA, in that the funds that a participant deposits into the account can be invested into high-interest yielding stocks, bonds, and more. As such, Health Savings Account funds can help participants to grow their wealth.

But there’s more: Health Savings Accounts are tax-free, which means that the interest earned from investments is not taxed when the funds are used to pay for healthcare expenses. Moreover, funds deposited into Health Savings Accounts are tax-deductible, which reduces participants’ annual tax burdens.

Unlike flexible spending accounts, individuals who have Health Savings Accounts have greater control over the funds in their accounts – and these funds can be rolled over from year to year. Moreover, these Health Savings Account funds can be used to pay for anything healthcare related, including health insurance co-pays and even non-prescription medications.

Health Savings Account participants have a maximum contribution amount that they can make each year into their accounts. However, these contributions are completely tax-deductible. They can be opened through an employer who offers the Health Savings Account option or they can be opened by individuals independently of an employer program. If the Health Savings Account is opened through the employer, it may be possible for participants to have the employer deposit funds into the account pre-tax as well.

In order to establish a Health Savings Account, participants need to enroll in a high-deductible health insurance plan that comes with low monthly premiums. The funds from the Health Savings Account can cover any medical costs that are not covered by the high deductible health insurance plan.

In many cases, Health Savings Accounts can help to save participants thousands of dollars a year in health care costs. It is wise to speak with an experienced health insurance professional in order to learn more about Health Savings Accounts and to determine if Health Savings Accounts are the best option for you and your family. Contact us today for more information about Health Savings Accounts or to get started today.

Posted by Wiley Long at 11:47 AM | Comments (0)

December 18, 2009

HSA Bank Eliminates Two HSA Fees as Banking Industry Fees Soar

As Congress continues to discuss the ever-increasing increase in banking fees across the country, HSA Bank has announced that it will eliminate the set-up fees and debit card renewal fees for Health Savings Accounts. By eliminating these fees, HSA Bank is addressing the two most prominent concerns amongst its customers, which were identified in the bank’s annual Consumer Benchmark Survey.

"We eliminated the debit card renewal fee because we recognize debit cards are the most convenient way for our account holders to make point-of-service transactions," said Dean Mason, CEO of HSA Bank. "We want to make it easy for people to have and use their debit card."

Consumers who enroll in qualifying high deductible insurance plans associated with Health Savings Accounts have a wide variety of options to choose from when it comes to where they will open their Health Savings Accounts. Some participants open their Health Savings Accounts with credit unions and banks. Others open their Health Savings Accounts directly with their insurance carriers’ sponsored suppliers. The increase in Health Savings Account popularity has led to an increase in competition amongst Health Savings Account providers.

"We listen to what our customers want and need out of their HSA administrator," continued Mason. "Eliminating the set up and debit card renewal fees is just the latest instance where we directly address our customer's concerns."

HSA Bank is a division of Webster Bank, N.A., which is a wholly-owned subsidiary of Webster Financial Corporation (WBS). HSA Bank is available to serve customers in states across the country and has been on the market for more than 12 years. HSA Bank cites convenience, competitive interest rates, and service amongst the benefits of working with them for Health Savings Account needs. The bank also offers several Health Savings Account investment options as well as 24-hour account access through the Internet and through its automated telephone system.

Posted by Wiley Long at 10:34 AM | Comments (0)

December 16, 2009

The Impact of Health Savings Accounts Amongst Credit Unions

As the health care reform debate rages on in the halls of the Senate in Washington, D.C. credit unions nationwide are increasing their efforts to find affordable and effective health care solutions for their union members. Creditunions.com hosted a recent Webinar in which a panel of health care plan experts evaluated the potential impact within the credit union community of making maximum contributions to Health Savings Account (HSA) portfolios.

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.

Posted by Wiley Long at 10:58 AM | Comments (0)

November 06, 2009

How Health Savings Accounts Can Turn Bad

For millions of Americans worried that health care costs could wreck them financially later in life, Health Savings Accounts are a savior.

More than 8 million people have over $10 billion in Health Savings Accounts as of November 2009. That figure is estimated to rise to over $70 billion within five years. Over a seventh of that money will be in balances large enough that the HSA administrator can offer mutual funds as an investment option. A typical Health Savings Account has $2,000 as the minimum for a mutual fund feature.

So some question: How can you lose? The Answer...

By having your Health Savings Account funds managed by an HSA Administrator with high money-management fees.

Early on Health Savings Account balances were handed off by health insurers to partner banks. Many paid risk-free interest rates of around 4%. Health Savings Account rates have since fallen by half. The fund option begins to look attractive. But there is a tendency for the fund choices to be based on who offers the best deal--to the plan's managers, not to participants. With your 401(k) your employer has a legal obligation to put your interests first. With Health Savings Accounts no such standard of care applies.

United Healthcare controls roughly 15% of the market for Health Savings Accounts, which it offers through OptumHealth Bank, a wholly owned subsidiary. Until late last year its HSA clients had 11 mutual fund choices from Vanguard Group. Annual fees ranged from 18 cents to 35 cents per $100 invested.

By late 2008 Optum had yanked the Vanguard options for new customers. Funds on the menu now hail from firms like Munder and Thornburg; fees range from 76 cents to $1.37 per $100.

Why the switch? No coincidence, perhaps, that regulatory changes this January enabled entities like OptumHealth and their consultants to start pocketing a cut of fund management fees. Nor, perhaps, is it purely random that many fund firms popping up in Health Savings Accounts these days kick back fees to plan managers. Vanguard does not pay kickbacks.

UnitedHealth, OptumHealth Bank and Remjeske, their consultant, decline to say how they divvy up fees. WellPoint, another Remjeske client, started offering HSA funds in April via two-year-old Arcus Financial Bank, with six of its seven Arcus funds paying such fees (two of which have since suspended payments because of market turbulence, Remjeske says).

"Revenue sharing doesn't even cover our recordkeeping," Remjeske pleads. "It only helps keep the cost down."

He's got a point. Given the paperwork, the puny balances most savers have in their Health Savings Accounts are hardly a gold mine. But whatever the economics at the moment, there's cause for concern about weak disclosure, lax legal oversight and high fees on savings that people are counting on to keep their pill bottles filled in old age.

The conflicts of interest can get pretty thick. Aetna and Cigna rely on JPMorgan Chase to select mutual funds for their HSA customers. The result: a stable of funds run mostly by--surprise--JPMorgan. Joseph Mondy, a Cigna spokesman, declines to comment on compensation between Cigna and JPMorgan. Aetna and JPMorgan are mum about their deal.

The good news is there's a way for some HSA participants to avoid this fee-palooza. Some insurers provide self-directed accounts to customers with certain minimum balances. Blue Cross Blue Shield HSA plans in Minnesota offer a Charles Schwab account for participants with at least $10,000 in their Health Savings Accounts. For a $10-to-$20 trading commission participants can buy low-cost exchange-traded funds. Alternatively, they can pay a sales load or a $5 fee to get into a mutual fund from a menu of funds costing 60 cents to $2.25 a year (per $100) in expenses.

Another risk is that Health Savings Accounts could be pared back before balances get big enough to make choices really important. Some Democrats argue that the tax break is a luxury for the healthy and wealthy. One proposal knocking around would limit pretax contributions from the current $5,950 to no more than each plan's annual deductible, which could be thousands of dollars less.

Posted by Wiley Long at 07:35 AM | Comments (0)

October 25, 2009

Health Savings Accounts Continue Expansion

As the healthcare debate in country continues on, there are many banks that are finding their Health Savings Accounts are exploding.

Health Savings Accounts, which are designed to allow saving for medical and retiree health expenses, are savings accounts set up through banks. Proponents say they allow more flexibility in how workers use their health care funds, while critics say the accounts favor healthier and younger people.

At Dubuque Bank & Trust, senior vice president Doug Stillings says Health Savings Accounts are particularly attractive to small businesses.

They are finding Health Savings Accounts are beneficial for smaller businesses, where increasing health care costs are particularly burdensome. He contends that Health Savings Accounts are more open-ended for employees as well.

"Health Savings Accounts give the employee much more flexibility in what they do with their health care money," Stillings said.

Users can access their Health Savings Account with debit cards and then save receipts to show they are for health care related expenses. There's no "use it or lose it" provision, so contributions carry over from year to year.

Dubuque Bank & Trust has offered Health Savings Accounts for three to four years, and Stillings said they have been growing in popularity among business owners.

At Great River Oral and Maxillofacial Surgery, about half of the employees now have Health Savings Accounts along with HSA insurance plans that are required to open a Health Savings Account.

"Health Savings Accounts allow a lot of flexibility for a healthy group or healthy individual," said Robin Zenz, office manager.

Zenz said the office has about 35 employees and the Health Savings Accounts have been implemented for about three years. An increasing number of employees have been signing up for the HSA Plans.

Stillings said he hasn't had any negative feedback on the program, but he admitted that Health Savings Accounts are not meant for everyone.

An article by the staff at Mayo Clinic on the health care provider's Web site said negative aspects of Health Savings Accounts are that older and sicker people pay more, they don't allow for the difficulty in budgeting for unpredictable illnesses and that the pressure to save money in Health Savings Accounts might keep people from seeking preventative treatment.

Stillings said he didn't want to predict whether proposed health care reform could change the amount of interest in Health Savings Accounts.

"There are so many unknowns in the health care world right now," he said. "If we continue with the type of structure we currently have, Health Savings Accounts will continue to gain popularity."

Posted by Wiley Long at 10:40 AM | Comments (0)

October 16, 2009

Health Savings Account Administrator Gold Investment Option

One Health Savings Account administrator we know of, Entrust, is offering clients a chance to turn their Health Savings Account investments into gold. Their company has announced the launch of their new Golden Health Savings Account (HSA), which will allows individuals to invest their Health Savings Account funds in gold.

Most HSA plans offered by banks are limited to investments in bank-issued assets like CDs, with minimal returns. Investors have therefore expressed an interest in gold and precious metal investing and Entrust New Direction has responded with its new Golden Health Savings Account. Specially designed for ease of access, the New Direction Golden HSA opens the door to gold and other precious metals investments.

"Most Americans who own an HSA face a dilemma about investing their funds in an account that will grow and low-returns investment options offered by the banks are no longer enough. In a down economy, clients want to direct their funds into an investment option they can make the most of, and investing in metals can help them get the returns they are interested in", says Catherine Wynne, President of Entrust New Direction IRA Inc.

Longer term investments in an Health Savings Accounts were originally popular only for those who delayed healthcare-related withdrawals so they could maximize tax-free growth of the account. However, more HSA owners are discovering that their HSA is still full of cash after paying healthcare expenses and have expressed an interest in plans allowing gold investments. Clients believe investing in gold and other precious metals is a smart option as precious metals are relatively liquid compared to other hard assets and are available in small increments. Most importantly however, precious metals offer a potential hedge against inflation which is an important concern for most consumers.

The Golden HSA offers clients the ability to establish an automatic purchase plan with precious metals dealers of their choice. For investors interested in hands-off investment, the Automatic Golden HSA plan allows monthly, quarterly or annual automatic purchases of one type of coin or metal product, for a reduced transaction fee.

Golden Health Savings Accounts are not limited to gold and precious metals. Different fees apply for non-precious metals assets. Entrust New Direction does not provide investment advice nor sell any investments, including precious metals. The plan owner makes all investment decisions for the Golden HSA. All earnings are tax-free and can be used for any qualified medical expenses like doctor visits, laser eye surgery, medicine and many more health related expenses. Non-qualifying distributions are subject to tax and potential penalties. Gold and other metals must be stored at a depository.

"Unlike any other health plans, HSA deposits are tax-deductible and all the earnings are tax-free when used for qualified medical expenses. Some clients use the HSA money to immediately pay for medical expenses, but many account holders allow the funds to grow so they can pay for any future medical expenses which occur, including during retirement," concludes Wynne.

Posted by Wiley Long at 07:27 PM | Comments (0)

October 10, 2009

Health Savings Accounts Create Opportunities For Banks

Following healthcare reform closely, insurers and banks are fighting to keep tax-advantaged Health Savings Accounts as part of any reform.

Money in Health Savings Accounts can be used to pay for current health-care expenses, such as deductibles and co-pays, as well as to save on a tax-free basis for future medical expenses, such as Medicare premiums. To qualify for a Health Savings Account, investors need to be enrolled in an high deductible health insurance plan that meets certain criteria. This year those include a deductible of at least $2,300 for a family and $1,150 for individuals.

If Congress passes a healthcare bill this year, all health plans would have to meet certain criteria to qualify as adequate coverage. Most people's current coverage would be grandfathered in, but if they switched plans, those plans would need to meet the new standards.

Not all HSA-qualified health insurance plans, in particular those sold to individuals and small businesses, would make the cut.

"It's a concern. We want the accounts to be viable going forward," says Kevin McKechnie, staff director of the American Bankers Association's HSA Council, which represents banks, insurance companies and their technology providers. More than 2,000 banks, credit unions and brokerage firms offer Health Savings Accounts.

About a third of people who have Health Savings Accounts were previously uninsured and HSA-qualified health insurance plans have grown in popularity among small businesses, the group most likely to drop coverage in recent years due to its cost, he adds. Premiums for these plans are lower than for traditional options.

Congressional committees have set the bar at varying heights for the minimum standards that coverage must meet. For instance, the House bill says that health plans must have an actuarial value of at least 70% - meaning the insurance covers 70% of health-care expenses. The Senate Health, Education, Labor & Pensions Committee sets the bar at 76%. A proposal by Senate Finance Committee Chairman Max Baucus released Wednesday implies a minimum of 65%.

Benefits consultants and industry experts say that HSA plans offered by large employers are likely to meet the criteria, because larger employers tend to offer more generous benefits.

But many HSA plans offered by insurers to individuals and small businesses are unlikely to make the grade. Roy Ramthun, president of HSA Consulting Services and a former senior health-policy adviser to President George W. Bush, estimates the actuarial value of these products ranges from 50% to 70%.

"The higher the bar is raised, the less likely these products will continue to be offered in the future," he says.

Banks and insurers want employees' contributions to be factored into the value. The maximum annual contributions to Health Savings Accounts this year are $3,000 for individuals and $5,950 for families.

Launched around six years ago, Health Savings Accounts were the cornerstone of the Bush administration's policy for making health care more affordable for American families. Many high-deductible plans cover some preventive care or prescription drugs before the deductible is met.

Health Savings Accounts are unpopular with Democrats. High-deductible health plans have lower premiums than more traditional plans, but enrollees must pay more out-of-pocket expenses before their insurance starts picking up the tab. (This year the maximum deductible for an HSA-qualified plan is $11,600 for a family). Such arrangements tend to favor the young and healthy, those who receive generous contributions to their Health Savings Accounts, and individuals who can afford to cover out-of-pocket medical expenses while fully funding their Health Savings Accounts.

Democrats resisted the introduction of Health Savings Accounts, which were created by the 2003 Medicare Prescription Drug Improvement and Modernization Act, describing them as an "unnecessary $16 billion subsidy" for the wealthy. Savings not needed to pay out-of-pocket medical expenses can accumulate in HSA for years, attracting the attention of firms seeking to manage these accounts.

Posted by Wiley Long at 11:16 AM | Comments (0)

September 25, 2009

Health Savings Account Administrator HSA Bank Releases New Website

One of our top recommended Health Savings Account Administrators, HSA Bank has release a new and improved enhanced version of their website. The website combines a simple and clean design with more intuitive navigation choices and focused content.

"The new website really takes the resources, information, and tools that were available on our old site and makes them more accessible," said marketing director Becky Seefeldt. "We reviewed everything on our website and organized it into four primary categories."

The primary categories make up the main navigation menu for HSA Bank's new website, which was reduced from seven on its earlier version. The website's main navigation menu includes Employers, Agents/Brokers, Accountholders, and HSA Education.

* Employers: The Employers section highlights the five-step process to begin working with HSA Bank and includes information that employers will find useful to setup and facilitate their HSA program.

* Agents/Brokers: The Agents/Brokers section provides information that describes how HSA Bank works with agents and brokers to build strong HSA programs for their clients.

* Accountholders: The Accountholders section of the website focuses on providing resources to prospective accountholders and assisting current accountholders with the management of their HSA at HSA Bank.

* HSA Education: The HSA Education section of HSA Bank's website is devoted to making education materials, tools and resources accessible to everyone.

CEO of HSA Bank Dean Mason said, "A Towers Perrin survey released earlier this year illustrated the impact effective communication can have on employees, including which plan options they select or the adoption of healthy behaviors."

The Towers Perrin report, entitled 2009 Health Care Cost Survey, indicated employers that had effective communication, or "high performers," influenced the plan option employees selected at a 20 percent higher rate than those companies considered "low performers." The gap between high performers and low performers widens to 36 percent for influencing employee adoption of healthy behaviors.

"In today's economy, we see companies making an HSA insurance plan their only option. The evidence presented in this report can be applied to these employers, because education and communication can ease the transition for employees," continued Mason. "We have created such great educational tools and resources for Health Savings Accounts, but we knew we needed to make them easier to find to increase utilization. Therefore, we made accessibility a major focus of our website redesign."

Visitors to HSA Bank's website can find all the basic HSA information, including HSA fundamentals, IRS requirements, contribution limits and eligible medical expenses in the same multimedia formats, such as Adobe Flash(R), PowerPoint and written communication. HSA Bank also continues to provide calculation and decision-making tools, including the new An HSA for Everyday tool.

The "An HSA for Everyday" tool allows an individual to listen to several real-life HSA scenarios, and even complete a questionnaire to learn how an HSA could work for your situation. The education resources they offer now, and continue to develop for the industry, focus on helping people identify with how an HSA can be useful to them in all stages of life.

You can find a list of our recommend HSA Administrators on our website, along with information on what a Health Savings Account can do for you.

Posted by Wiley Long at 09:15 AM | Comments (0)

August 09, 2009

JP Morgan Releases Health Savings Account Report

In a report titled "Best Practices for Implementing a Health Savings Account Program" JP Morgan offers a step-by-step guide for employers who want to offer a Health Savings Account program to their employees.

Many companies are finding that the addition of a Health Savings Account option to their healthcare benefits menu presents a practical solution to the health insurance challenges they face. The adoption of Health Savings Accounts has seen significant growth since they were created. By year-end 2008, there were an estimated three million Health Savings Accounts with deposits of over $3 billion - and the number of HSA accounts is expected to quadruple by 2012.

"Health Savings Accounts provide an affordable health insurance option and continue to grow in popularity," said David Josephs, head of consumer-directed healthcare at JPMorgan. "This report shares the lessons learned in areas that have resulted in successful programs for many of our clients and provides a framework to ensure that a company's benefit offering is competitive in the marketplace and offers the best value for both the employees and the company.

JPMorgan was one of the first banks to offer Health Savings Accounts and has extensive experience in the consumer-directed healthcare industry. The bank administers Health Savings Account programs for nearly 10,000 companies and provides Health Savings Account cash and investment services for hundreds of thousands of individuals nationwide.

The best practices presented in this report reflect JP Morgan's experience meeting the needs of companies representing the full spectrum of American employers - ranging from small companies with two employees to large firms with more than 100,000 employees.

Some of the best practices highlighted in the report include the following:

Designing an HSA program to meet short and long-term enrollment goals. Companies that are successful at introducing HSA plans do so by designing a plan that is simple to understand and easy to use; usually provides 100% coverage for preventive care services; offers a line of credit to cover any unexpected medical expenses; generally contributes to employee Health Savings Accounts; and promotes employee education on healthcare costs.

Selecting an HSA administrator with requisite expertise and core capabilities to meet a firm's and its employees' needs. Companies should choose an HSA administrator that offers a simple enrollment process with customizable employee communication and enrollment materials; provides comprehensive reporting with a dedicated support team; and has a strong reputation and balance sheet to depend on during difficult times.

Effectively communicating the benefits of an HSA to employees. Companies have learned that a well thought-out, staged employee communications plan rolled out over several months in advance of the actual enrollment period allows employees time to fully understand the new benefits - and reduces confusion during the busy enrollment season. Professionally developed, extensive communication tools can answer questions and address concerns about Health Savings Accounts.

Posted by Wiley Long at 02:02 PM | Comments (0)

August 03, 2009

Health Savings Accounts From Canopy Financial Goes Mobile

Canopy Financial has released their Health Savings Account application for the Apple iPhone and iPod touch.

Canopy's mobile Health Savings Account application lets consumers search medical procedures using keywords to determine if they are eligible to be paid using tax-advantaged Health Savings Accounts. Canopy's Mobile Health Savings Account application then maps local providers and provides the cost of the procedure based on the consumer's ZIP code.

“The launch of the consumer HSA application will be followed by an enterprise/white-label version of the app that can be branded by financial institutions and health plans and offered directly to their consumer base,” said Vik Kashyap, CEO of Canopy Financial Inc., San Francisco.

The target demographic is primarily consumers with Health Savings Accounts, Health Reimbursement Arrangements, and Flexible Spending Accounts.

Canopy’s HSA application levels the medical-expense playing field by giving consumers real-time access to information regarding medical procedures, their costs an whether they are eligible for payment using tax-advantaged Health Savings Accounts.

The data is keyword searchable within Canopy’s HSA mobile application and served up along with HSA related content.

Canopy’s iPhone app features five separate Resource Tabs, including a Medical Expense Locator, which lets consumers conduct keyword searches for medical procedures.

The Procedure Cost Analyzer lets consumers navigate medical procedures to determine the customary cost insurance carriers and employers generally pay for medical procedures reimbursed under a health insurance policy or health plan within a given ZIP code.

The HSA Account Login provides consumers real-time mobile access to information on their tax advantaged Health Savings Account, including account balance and transaction details.

The real-time News Feed provides consumers update news and information on the HSA industry, HSA account requirements, new provisions and market trends.

Priced at $4.99, Canopy’s iPhone app supports the latest 2.0 version and above functionality and is available via Apple’s App Store.

“We are using a combination of tactics including direct marketing, online advertising and partner promotion offering to get the word out about the iPhone app,” Mr. Kashyap said. “At this point there is no plan for advertising or sponsorship within the consumer app.”

Find an HSA Insurance Plan that is right for you at HSA for America.

Posted by Wiley Long at 09:39 AM | Comments (0)

July 22, 2009

HSA Administrator Using Health Savings Accounts

When a bank not only administers Health Savings Accounts, but also offers their employees an HSA plan, people tend to take notice. Blackhawk Bank in Beloit, Wis. is not only a custodian of almost $7 million in HSA assets, but also offers its clients help on every step in the Health Savings Account design and implementation process.

Blackhawk Bank can also speak from experience as an end user. The bank introduced their own HSA plan in January 2005. The bank and its employees are saving money, and an employee wellness component of the HSA plan is driving important improvements in employee health and healthy behaviors.

While Blackhawk introduced its HSA plan as an exclusive offering, the company also added a traditional PPO two years ago. But according to the company, only 8% of the employees opted for the PPO plan. "The HSA plan wasn't embraced with open arms when we introduced it," says Susan Burdick, a company rep. "There was a certain amount of employee resistance and fear. Employees were asking, 'Will there be enough money there to meet my family's medical needs when they need it?'" But Burdick says "now that we've lived it, I don't think we could take the feature away."

Bank Contributes 50% Match to Health Savings Accounts

The bank's HSA plan features a $1,500 deductible for individual coverage and $3,000 for family coverage. Once the deductible has been met, employees contribute 10% of the remaining costs up to the out-of-pocket limit of $3,000 for individual and $6,000 for families. The bank also contributes 50% of the dollar amount to each employee's HSA, and it makes the annual contribution on Jan. 1. "We do that for a specific reason," Burdick says. "It reduces peoples' fear that they won't have enough money in their account at the beginning of the year to pay their out-of-pocket costs."

Burdick says that over the four years the plan has been in effect, enrollees have built up average HSA balances of $1,500. She says that this comes close to the average $1,500 to $1,600 that it sees in its custodial Health Savings Accounts.

So far, Blackhawk's medical insurance premiums have not exceeded the 2005 premium renewal rate levels, so employees are still contributing less in 2009 for their medical insurance than they were in 2005. Blackhawk employees contribute a flat premium percentage, based on their annual salary, for their insurance regardless of whether they choose the HSA or PPO plan. Monthly premiums for the CDH plan trend lower than for the PPO.

Blackhawk has made no changes to the plan's design since its introduction, and for a reason. "People must be able to understand their medical plan," Burdick says. "But if you tweak your plan on an annual basis, people become confused and feel that they're losing control." And that, she warns, makes it more difficult for your employees to become your partner in saving health care costs.

For Blackhawk, the critical element for HSA plan success is employee education. "When we introduced the plan, we brought our employees together in small groups of 10 each to talk about the plan and explain in detail how it works, including the tax benefits for employees," Burdick says. The small groups created an atmosphere of intimacy and gave people the opportunity to ask questions and address their concerns. "We also hit the message multiple times over a period of time, chunking the information into small pieces and getting it out in meetings, articles in our newsletter and other venues," she notes.

But the deciding factor, Burdick says, was "having the courage to put pencil to paper" and help people calculate what their expenses would be under the plan. "This is an emotional issue for people," she notes. "Mess with an employee's benefits, and you're messing with his or her family. So you have to remove the emotion from the equation." Burdick explains that once they went through this exercise with their employees, "it was a home run."

Blackhawk works with Health Solutions, a Milwaukee-based wellness program management company, to support its employee wellness program. But the bank has done something that many employers don't do: Employees must take an annual health risk assessment (HRA) to participate in the company's medical plan. The first year was voluntary, Burdick explains. "But starting with year two, it was mandatory, and you also had to discuss your results with a health coach," she says, adding that the rule applies to plan members and their spouses. "We started from the premise that if you don't know what's wrong with you, you can't address and fix it." It also works to strengthen the employee's partnership with his or her physician, which, Burdick observes, is at the heart of a HSA plan.

Burdick admits that the bank experienced more employee resistance to the mandatory HRA than it did to the HSA plan when it was introduced. But the company worked to assure employees that it would be receiving only aggregate HRA results.

Major Emphasis Put on Wellness

Blackhawk also involves its employees in a variety of worksite-based health and wellness initiatives, focusing on the top three health risks — poor nutrition, cancer and lack of fitness — identified through the HRAs. As part of its "Eat Right" initiative, all food vending machines now include healthy choices on the right side of the machines. A company Health Team composed of employees plans events, activities and education around the three health areas. Among positive results to date: a drop over the past four years in the number of employees at risk for poor nutrition, from 91% to 60% ("Not as much as we'd like to see," Burdick says), and an increase in the number of days each week that employees are exercising.

While Blackhawk doesn't tinker with its HSA plan design, the company is ramping up its wellness program. The company is now adding incentives to encourage more employees to take annual physical exams. "We found that only 26% of our employees were doing this," Burdick says. "So now we're putting an extra $100 into the HSA of any employee who takes an annual physical." The company also is focusing on seven basic health habits that are said to be predictors of longevity. Using HRA baseline data, the company is shifting its health and wellness practices toward addressing improvements in the seven areas.

Burdick's takeaway for other employers: "It's all about education, communication and keeping it fresh," she says. "It can't be a once-a-year discussion with your employees." Burdick advises aligning what the company puts out as part of its health and wellness program with what it actually does in the workplace. And she says that you can't roll out a HSA plan with a wellness component without visible support from the top. "It can't be 'yes, top management supports it,' "she says. "They have to support it visibly."

Posted by Wiley Long at 03:17 PM | Comments (0)

July 19, 2009

Health Savings Accounts Are A Better Solution

The architects of health care reform would be smart to take a closer look at Health Savings Accounts. One place to start would be HSA Bank which facilitates HSA accounts.

HSA Bank has grown to $600 million in assets in just a decade. It was the first bank in the country to recognize the potential in doing the banking for Health Savings Accounts.

It now services more than 225,000 Health Savings Accounts and employs over 160. Its rapid growth attests to the power of the consumer movement at the grass-roots of health care in this country.

The private-sector revolution is gaining full steam at a time when public payers are going bust. The latest Medicare prognosis is that it will run short of money in 2017. The state budget is facing a monumental $6.5 billion deficit, partly because of mushrooming health care costs. And school districts are paying more than $20,000 a year per employee for health benefits, three times what the best managed private plans cost.

It also comes at a time when, with the government hemorrhaging red ink, President Barack Obama and his lieutenants in Congress are pushing for bigger federal expenditures and responsibilities for providing coverage.

It comes down to a battle of political philosophies: one a top-down model of how the world should work, the other bottom-up. It can be characterized as bureaucrat-driven vs. consumer-driven.

On the market side of the roaring debate are the HSA Bank, the 51% of private companies that offer a consumer-driven plan, and an estimated 8 million people who have opted for HSA accounts. Included are most companies in the health care business, like hospitals and insurers.

Their proponents believe marketplace reforms can cure the hyper-inflation that has deprived many people of access to health care. Indeed, the moderation of hyper-inflation was probably brought about by consumer pressure.

The reduction in health costs from converting a traditional plan to a high-deductible plan is put at 20% to 60%, according to HSA Bank. One study puts the premium savings at $3,836 per employee.

The grass-roots movement toward consumerism and individual responsibility has gained enormous momentum in just a decade. Following the creation of medical savings accounts in 1997, the trend toward personal health accounts of one sort or another has been stunning.

The health insurance industry reports there were 1 million Health Savings Accounts in early 2005, 3.1 million in 2006, 4.5 million in 2007 and 6.1 million in 2008. Current estimates are about 8 million.

Cost analysis

As always, the missing ingredient in the national and state debates about access and affordability of health care is a serious analysis and discussion about costs. Isn't that strange?

In business, any self- respecting manager would attack the costs. And that's exactly what's happening in a major way at the grass-roots in the private sector.

Payers are saying we're not going to take it any more. They are converting their traditional plans to consumer-driven plans, and they are managing health as well as health costs.

What a discovery - you can't manage health costs without managing health.

The social engineers at work in Washington are correctly seizing on prevention, wellness, disease management and information technology as their way to deal with costs. But those four items are only part of a comprehensive attack on bloated costs.

The private sector has learned it's absolutely essential that part of the mix has to be the right incentives and disincentives to bring about individual responsibility.

You just know in your gut that any virtually free government plan will require heavy subsidies from the taxpayer to be competitive with insurers in the private sector.

Price control backfires

Even if the Democrats have their way and we end up with a government-managed, taxpayer-subsidized health system, don't expect perfection. A recent series in the Journal Sentinel about how Medicaid performs for low-income dental patients is illustrative. Many poor people go begging for dental care and often find none. It's a mess.

The root problem is that the government uses price controls as a way of setting payments. They are set so low, about 40% of normal charges, that they result in de facto rationing. People can't get care because most dentists have withdrawn their services.

Further, even though the government payments are low, the Medicaid program in Wisconsin is a major factor in the ballooning state deficit. The state can't afford the low-priced programs it now offers.

Once again, it is proof positive that there isn't enough money in the system to let the government run a poorly managed program that would expand to many more Americans.

In contrast, there is plenty of money in the system if the grass-roots revolution on consumer-driven health care is allowed to flourish and if the principles learned in the private sector are incorporated into the necessary public plans that serve as a safety net.

The president needs to look at HSA Bank to find out how to cover everyone at an affordable price tag.

Find a complete list of preferred HSA Administrators at HSA for America.

Posted by Wiley Long at 03:13 PM | Comments (0)

June 13, 2009

Health Savings Accounts at SunTrust

SunTrust Banks recently introduced a turn-key Consumer-Directed Healthcare solution for employers seeking to take control of their healthcare costs. The SunTrust Health Savings Account combines administrative and financial components, including integrated account management, a healthcare payment card, HSA investment options, and integrated account management, all offered through a single trusted custodial partner.

"SunTrust is committed to providing solutions that assist our clients in establishing a sound financial foundation," said Gary Plourde, Senior Vice President, SunTrust Institutional Investments Director of Sales.

"We recognize that managing the rising cost of healthcare while achieving sustainable business growth is one of the greatest challenges businesses face today. In an effort to meet the demands of this dynamic market, SunTrust has launched a turn-key HSA product designed to accommodate the business needs of any organization regardless of size."

In partnership with ConnectYourCare, a leading provider of innovative CDH tools and account administration, the SunTrust Health Savings Account incorporates a user friendly web portal with helpful wellness information to empower individuals to take greater control of their healthcare financial planning.

Benefits of the new service include:

-- Real-time Employer Reporting and Control Tools: Employers can manage their employee and account data through access to the Employer Dashboard, an online management tool that enables employers to maintain and update employee information, such as employment status, demographic information, direct deposit, and payroll deductions. Employers also have access to a variety of reports to help monitor account activity related to claims, as well as treasury-related money movement controls.

-- Participant Health Education and Empowerment Tools: The web portal provides a suite of online health-related tools such as hospital and drug comparisons, wellness and exercise guides, and medical research.

-- Healthcare Payment Card: The healthcare payment card provides a consumer-friendly process for expense reimbursement.

-- Banking and Investment Platform: Account holders will have access to HSA investments through a single sign-on portal, where they can view and select investment choices that include an FDIC insured deposit account and several mutual funds.

Enacted in 2003, as part of the Medicare Prescription Drug Improvement and Modernization Act, Health Savings Accounts have gained significant traction among various healthcare purchasing groups over the past few years. The flexibility in design allows individuals who have an eligible high deductible healthcare plan to contribute to a tax-advantaged savings account. Unlike their predecessors, which are opened through an employer, Health Savings Accounts are consumer owned accounts that are attached to investment vehicles that help individuals save for unexpected medical expenses and plan for future healthcare and retirement needs.

"Consumer Directed Healthcare provides a more affordable option to employers and individuals and assist with their goal to live on solid ground," said Hugh Gallagher, Senior Vice President, SunTrust Retail Deposit Product Management. "By offering best in class product features including a multi-purse debit card, wellness tools, competitive investment options, 24/7 customer support, claims processing and online options, the SunTrust HSA is designed to help individuals take an active role in directing their healthcare financial future."

You can find a list of preferred HSA Administrators at HSA for America.

Posted by Wiley Long at 12:26 PM | Comments (0)

June 10, 2009

New Health Savings Account Partnership

Maryland-based Hunt Vally, a provider of Health Savings Account management solutions, has partnered with SunTrust to deploy a turn-key solution for the administration of Health Savings Accounts.

The partnership will give SunTrust access to ConnectYourCare's suite of online administrative tools and services including Consumer-Driven Healthcare Express, real-time employer transparency and control tools, participant health education and empowerment tools, healthcare payment card and a banking and investment platform.

You can find a complete list of our recommended HSA Administrators, HSA instant quotes on qualifying HSA plans, and extensive information on Health Savings Accounts at HSA for America.

Posted by Wiley Long at 11:58 AM | Comments (0)

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 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 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)

March 20, 2009

New Opportunities Are Being Created By Health Savings Account Portability

With Health Savings Account assets now in excess of $8 billion nationwide, there is a substantial prize for banks that can capture these Health Savings Accounts in the financial marketplace and retain them for the long term.

However, Health Savings Account customers do not necessarily have a strong sense of allegiance to any bank. Instead, Health Savings Account owners are starting to act more like true financial account holders. That means that if they're not getting what they need from their current financial institution, they'll be taking their Health Savings Accounts elsewhere.

Consumers are catching on to the fact that they can take their Health Savings Accounts to any bank that offers custodial services, especially when they leave an employer. And in today's economy, many employees are being forced to leave. A growing number of insurance products are becoming more 'plug and play' in nature, meaning that Health Savings Accounts can be linked to any compatible high-deductible HSA insurance plan. This is giving consumers many more options.

For Health Savings Account Administrators, good customer service is a must. But banks also have to understand how consumers behave and take a holistic market focus that includes a retention strategy based on "obsessive customer advocacy." As part of that strategy, banks need to step up to the plate and offer their Health Savings Account customers the same kind of financial advisory services that investment firms offer their clients.

While most HSA holders are quite positive about the long-term savings potential of Health Savings Accounts, that optimism is balanced with some trepidation given the state of the economy. The result is that while HSA holders want to save for the future, the economy is forcing them to tap into their Health Savings Accounts sooner rather than later.

Most HSA owners also wind up in a banking relationship by default because of an arbitrary partnership between the bank and the employer (or insurer). And a large number are confused about the portability potential and other rules governing their Health Savings Accounts.

But these consumers will wise up over time, and HSA Administrators could find themselves in a predicament when it comes to customer turnover rates. HSA owners are most concerned with fees, interest rates and debit cards. In fact, they prefer using debit cards to pay their medical bills. HSA holders tend not to pay attention when health insurers recommend a bank. And most are "on the fence" about their existing HSA banking relationship.

The big question is who will step up to the plate and educate consumers about their Health Savings Accounts. Employers generally are not doing this because many are not in a position to do it. Health providers are also not doing a good job at this either. So HSA Administrators have a market advantage. But it's still early in the HSA game, so the competition will continue. The bottom line for HSA banks: Start developing your customer retention strategies now to prepare for the increasing number of HSA-savvy consumers who will start taking advantage of the portability of their Health Savings Accounts.

Learn more about Health Savings Accounts, find extensive HSA information on the best ways to use your Health Savings Account, and find a list of recommended HSA Administrators on the web at HSA for America.

Posted by Wiley Long at 11:47 AM | Comments (0)

February 05, 2009

Health Savings Accounts Show Only Modest Declines in Troubled Financial Markets

Canopy Financial, a leader in healthcare banking technology solutions that connect healthcare and financial services, announced the results of their Health Savings Account (HSA) Market Report for Q3'08. Canopy, whose industry leading HealthDirect® and CareGain® platforms serve as the core consumer-directed healthcare (CDH) account management and administration backend for some of the largest banks and health plans respectively, collects and aggregates a wide range of statistics related to actual HSA usage published quarterly. In Q3'08, despite sharp drops in U.S. financial markets, Individual and Family Health Savings Accounts showed only modest declines of two and four percent respectively.

However, Health Investment Account (HIA) balances sharply declined due to recent stock market performance with individual HIAs declining on average 17 percent quarter-over-quarter. Family HIA balances fared better, declining on average only eight percent quarter-over-quarter.

"In spite of the recent financial crisis, one thing to note about Health Savings Accounts, and specifically HIAs, is how contributions into these accounts resemble that of 401(k) plans," said Vik Kashyap, CEO of Canopy. "Even in the midst of significant declines in the stock markets, inflows to individual and family HIAs were double and triple that of outflows respectively."

Canopy's Q3'08 HSA Market Report results showed that older individuals and families (age 51+) continued to hold the highest average HIA account values, nearly triple the HIA account values held by younger individuals and families (age 25 - 40). In addition, card payments continued to lag behind every other spend category, with the majority of spend out of Health Savings Accounts being derived from bill payments and reimbursements. The market report can be downloaded at www.canopyfi.com.

Learn more about Health Savings Accounts and how they can save you money at http://www.health--savings--accounts.com

Posted by Wiley Long at 08:15 AM | Comments (0)

January 02, 2009

Insurers and Banks are Creating More Health Savings Accounts as Industry Grows

The money coming from the "health/wealth" market is expected to increase over the coming years: Some experts predict the 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 regularly. 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 for banks to invest for their purposes.

Given these numbers, it's little surprise that the biggest health insurance companies are not hesitating to at least dip their hands into programs like Health Savings Accounts. 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 those companies.

It's not just banks who are getting involved, either. Major health insurers like United Healthcare and Blue Cross Blue Shield already have Health Savings Account programs, but experts predict that other insurers will jump into the banking industry before long to get their share of the cash.

Here is our recommended list of HSA Administrators.

Posted by Wiley Long at 11:55 AM | Comments (0)

December 18, 2008

Health Savings Account Balances Grow Significantly

Canopy Financial, a pioneer in innovative healthcare banking technology solutions that connect healthcare and financial services, has announced the results of their Health Savings Account (HSA) Market Report for Q2'08.

Canopy, whose industry leading HealthDirect and CareGain platforms serve as the core Health Savings Account management and administration backend for some of the largest banks and HSA plans respectively, collects and aggregates a wide range of statistics related to actual HSA usage.

As evidenced in the report, the 2nd quarter of 2008 again realized significant quarter-over-quarter growth in average funds held in both Individual and Family Health Savings Accounts -- which grew 19 and 18 percent respectively.

"For the 2nd quarter, we dramatically expanded our statistics on Consumer Health Savings Account spending, detailing spend by vehicle, category, and even days of the week, offering for the first time ever a real world snapshot of precisely how consumers use and spend their HSA dollars," said Vik Kashyap, CEO of Canopy.

Canopy's 2nd quarter of 2008 HSA Market Report results showed quarterly inflows into Individual Health Investment Accounts (HIAs) more than tripling outflows, with inflows into Family HIAs more than doubling outflows. Furthermore, the Q2 report highlights two emerging trends: older families (age 51+) and younger professionals (age 25 - 40) appear to be the demographic groups most prevalently using Health Savings Accounts as long-term investment vehicles; and young families (age 25 - 40) are now choosing Health Savings Accounts over traditional family health benefit plans. Available immediately, the report can be downloaded at: www.canopyfi.com/hsametrics.htm

Learn more about Health Savings Accounts at: http://www.health--savings--accounts.com

Posted by Wiley Long at 11:32 AM | Comments (0)

December 10, 2008

Comerica Bank Introduces Health Savings Account

Comerica Bank's business customers can now offer their employees an affordable option for managing their health care expenses with Comerica HealthReserve, a Health Savings Account (HSA). Comerica HealthReserve HSA is also available to any individuals with high-deductible heath insurance coverage.

"With healthcare costs continuing to outpace inflation, the Comerica HealthReserve HSA enables us to offer our business customers a chance to lower their expenses while helping their employees," said Cassandra McKinney, director of Retail Product and Sales Management for Comerica Bank.

Health Savings Accounts, including Comerica Health Reserve, can help reduce a business' payroll taxes, health insurance premiums and administrative workload and give a company's employees more control over their healthcare costs.

Comerica HealthReserve HSA customers will be able to view their account balances, pay their bills and store their healthcare receipts online. Healthcare bills can be paid online or by debit card. Comerica HealthReserve HSA customers also will have the option to invest in mutual funds when their account balance exceeds $2,500.

Comerica Incorporated is a financial services company headquartered in Dallas, Texas, and strategically aligned by three business segments: The Business Bank, The Retail Bank, and Wealth & Institutional Management. Comerica focuses on relationships, and helping people and businesses be successful. In addition to Texas, Comerica Bank locations can be found in Arizona, California, Florida and Michigan, with select businesses operating in several other states, as well as in Canada, China and Mexico.

Learn more about choosing an HSA Administrator that is right for you.

Posted by Wiley Long at 02:44 PM | Comments (0)

November 20, 2008

J.P. Morgan Sees Health Savings Accounts Rise 60 Percent

J.P. Morgan announced that their Health Savings Account (HSA) business has grown by 60 percent in account volume over the last year.

As the only national bank to offer Health Savings Accounts through its own proprietary platform, J.P. Morgan remains an industry leader with more than 300,000 account holders and more than $400 million in assets.

"Health Savings Accounts enable employers and consumers to balance more effectively short- and long-term needs around healthcare expenses," said David Josephs, head of J.P. Morgan's Consumer-Directed Healthcare business.

"With the rising cost of healthcare coverage, health insurance plans that include an HSA help individuals plan for current and future expenses while helping employers and individuals manage healthcare costs."

J.P. Morgan reports a number of key trends in the market since offering Health Savings Accounts directly to employers and consumers last year.

Employer commitment key to success

The firm reports seeing a 97 percent adoption rate among eligible employees in HSA programs sold by J.P. Morgan directly to employers. Much of the success of these new plans is attributed to senior level commitment and employee training and education.

“Employers that have embraced the HSA as a major part of their healthcare strategy are seeing high levels of adoption,” said Josephs. “Keys to success are a strong plan design with employer contributions and an aggressive education program.”

To assist employers with HSA education, J.P. Morgan has developed a comprehensive adoption kit that includes communication materials needed to educate employees, as well as a road map on how and when to conduct training sessions. The kit also includes an interactive video that educates employees on how the HSA works using real-life examples.

Diversity in employer adoption

J.P. Morgan saw early adoption of its program from medium and small businesses that found the HSA as a way to preserve affordable health coverage. As the HSA is offered along with a high deductible health plan, employers are generally able to offer their employees lower premiums and put employees in control of how their dollars are spent. The additional tax savings of these plans can also make offering the program much less expensive for the employer than traditional insurance coverage.

At the same time, many large organizations have adopted J.P. Morgan’s HSA program. These organizations come from industries such as manufacturing, retail and financial services, with participation across all salary levels including low- to-moderate income employees as well as managers and executives. Larger organizations realize they can save up to 30 to 40 percent annually using Health Savings Accounts.

Benefits of an HSA for consumers and employees

Health Savings Accounts allow account holders to finance their current medical expenses with pre-tax dollars and accumulate savings in a tax-free cash account. As their balance grows, account holders have the option of opening an investment account and transferring assets into a mix of mutual funds. They also have the flexibility to hold onto their HSA account if they change jobs and can carry over unspent HSA balances from year to year, creating an excellent retirement healthcare savings tool.

Posted by Wiley Long at 10:34 AM | Comments (0)

September 05, 2008

OptumHealth Bank Reaches Health Savings Account Deposit Milestone

OptumHealth Bank has announced that it has reached more than $600 million in Health Savings Account deposits, a significant industry milestone.

"OptumHealth Bank has achieved this milestone as a result of a nearly 50 percent increase in Health Savings Account assets from one year ago, as more and more consumers choose Health Savings Accounts to help them plan, save and pay for their health care," says Kelvin Anderson, president, OptumHealth Bank. "Deposits, investments and health care spending all increased substantially even during a time of economic stress and uncertainty – a testament to the foresight of individuals who understand the value of Health Savings Accounts and the need to manage their health care money wisely."

OptumHealth Bank provides value to its customers through three types of HSA accounts that meet the varying spending and savings patterns of its account holders. Individuals can select a basic, low-cost account or choose from interest-bearing accounts that also offer mutual fund investments for long-term savers. Offered in conjunction with high-deductible health care plans, Health Savings Accounts allow individuals to save for current and future medical expenses on a tax-free basis. Deposits can be made tax free, they grow tax deferred, and account holders don’t pay income tax on withdrawals used for qualified medical expenses.

OptumHealth Bank is part of the financial services unit of the nation’s largest health and wellness company, OptumHealth. In addition to Health Savings Accounts, OptumHealth Financial Services provides tax-advantaged accounts for health care savings and spending, innovative medical and debit card technology, benefits administration services and print and electronic payables solutions for the health care industry. It includes Administration Resources Corp., a leading third-party benefits administrator.

You can find a comprehensive list of HSA Administrators at: http://www.health--savings--accounts.com

Posted by Wiley Long at 02:26 PM | Comments (0)

August 18, 2008

Finding the Best Health Savings Account Administrator

If you are considering setting up a Health Savings Account (HSA), the good news is that there are more options to choose from than ever before. But, as with any financial transaction, make sure you check out the details before you commit your money.

Health Savings Accounts let you to pay for health-care expenses, like co-pays and deductibles, and save for future retiree expenses, such as Medicare premiums, on a tax-free basis. To qualify for an HSA in 2008, you need to be enrolled in an HSA-qualified health insurance plan with a deductible of at least $1,100 for individual coverage or $2,200 for a family.

It’s a fast-growing business. The number of banks, credit unions and brokerage firms offering Health Savings Accounts has doubled in the past 18 months according to Carlton Doty, an analyst with technology and market research firm Forrester Research. While many Health Savings Accounts are only available to people who get their insurance through their employer, she says a growing number are also being offered directly to consumers who purchase health insurance in the individual market.

If you're enrolled in a health insurance plan that qualifies you to open a tax-advantaged Health Savings Account, it's worth shopping around. Interest rates and investment options vary widely on Health Savings Accounts. And fee structures are all over the map, meaning that the amount you pay can vary widely.

If you're thinking of opening an HSA, it's important to know all the costs upfront as the fees can quickly mount up. Charges to watch out for include set-up fees, annual fees, monthly account maintenance fees, transaction fees and account closing fees.

Annual fees can range from zero to $185 per year, according to Forrester Research. The same goes for interest rates on accounts, which are typically tiered, rising as balances reach certain amounts.

Today, HSA custodians are offering investments, such as certificates of deposits, mutual funds or full brokerage services, in addition to the more plain-vanilla savings accounts.

Follow this link to find a list of recommended HSA Administrators.

To find more information on Health Savings Accounts, visit us at: http://www.health--savings--accounts.com

Posted by Wiley Long at 02:23 PM | Comments (0)

August 04, 2008

Winn-Dixie Helping Health Savings Account Owners

Winn-Dixie shoppers can now use their Health Savings Account cards at any checkout register when purchasing over-the-counter health and wellness items.

The Jacksonville-based grocer upgraded its software so that each of the thousands of checkout registers in the chain can identify qualifying products, charge them to the Health Savings Account, and then automatically subtract that amount from the total owed for all other purchases.

Formerly, customers using a Health Savings Account card had to pay for those items at the pharmacy and then go to the regular checkout lanes to pay for other items. Winn-Dixie Stores Inc. executives did not disclose the cost of upgrading the system.

"This is all about making the shopping experience better for our customers," said Robin Miller, Winn-Dixie's director of communications. "We are very pleased to be able to offer this added convenience, especially in these challenging economic times."

HSA plans allow individuals to set aside a portion of their earnings to pay for qualified medical expenses. Money placed into an Health Savings Accounts are not subject to payroll taxes.

Winn-Dixie (NASDAQ: WINN) operates 520 grocery stores in Florida, Alabama, Louisiana, Georgia and Mississippi.

Posted by Wiley Long at 09:55 AM | Comments (0)

July 19, 2008

Health Savings Account Banks Selling Health Insurance?

Several of the nation's largest health insurers operate banks that administer Health Savings Accounts opened by their enrollees. But continued growth of Health Savings Accounts could prompt banks to launch their own health insurance companies, some industry observers predict.

Getting into the insurance business could be a way for banks to increase their deposits and capture billions of dollars previously paid to health plans in the form of premiums, says James Knight, M.D., chairman of 1st Pacific Bank of California and CEO of Consumer Directed Health Care, Inc., a consumer-directed health (CDH) consulting firm.

United Healthcare (OptumHealth Bank), the Blue Cross and Blue Shield Association (Blue Healthcare Bank) and WellPoint, Inc. (ARCUS Financial Bank) have subsidiaries to house Health Savings Accounts, Health Reimbursement Arrangements (HRAs) and Flexible Spending Accounts (FSAs). As of Feb. 29, OptumHealth held more than $560 million in HSA deposits.

In 2007, according to Knight, health plans collectively took in about $700 billion in premium revenue for their commercial insurance products. In theory, switching consumers to high-deductible plans should reduce that premium revenue by about $300 billion, he says. Some of that savings could be redirected to consumer-owned Health Savings Accounts. However, premiums charged for some HSA-qualified plans are far too high given the large deductibles enrollees are asked to meet before coverage begins, he contends.

"The insurance product ought to be very inexpensive compared to low-deductible (copayment-based) policies," Knight asserts. "But the incumbent insurers aren't interested in reducing their premium revenue."

However, United Healthcare, the nation's largest seller of HSA-qualified plans, says its plans (sold through its Golden Rule subsidiary) typically cost 45% to 55% less than its more traditional coverage options, according to spokesperson Ian Stanton. As of Jan. 1, more than 1.3 million lives were covered by one of United's HSA-based plans.

Banks May Offer Plans for Less

According to Knight, premiums for an insurance policy that carries a $6,000 annual deductible should be half the price of a policy that has a $500 deductible because the enrollee assumes far more financial risk. He cites the Rand Health Insurance Experiment, which determined that moving to high-deductible coverage should reduce insured payouts by at least 43%. Knight adds that average per-capita spending for people under age 65 is probably between $2,700 and $3,000 per year. But premiums often don't reflect the savings that health plans reap. And that means there is less money for consumers to invest in Health Savings Accounts.

"Banks are waiting for the bouquet, but when it arrives, it's just a couple of flowers," he quips.

Low-cost coverage would free up more money for customers to place into their Health Savings Accounts, Knight suggests. An increase in core deposits, he says, "is platinum to banks right now." Renewable deposits, Knight adds, could make the cost of running a health insurance business akin to a marketing expense.

Some banks already own property and casualty insurance companies. And banks that sell insurance tend to be more profitable than those that don't, according to data released this month by Mamaroneck, N.Y.-based Bank Insurance Market Research Group. According to the report, banks that had some insurance activity in 2007 reported 44% higher (median) net income than banks that didn't have such side businesses.

Large banks, which tend to be more profitable anyway, are more likely to operate an insurance businesses than are smaller firms, and the higher net income was apparent in all asset-size groups, according to the study. The smallest banks (less than $250 million in assets) that had some insurance activity had 40% higher median net income than that of similar-sized firms that didn't offer insurance.

1999 Law Allows Competition

Under the Gramm-Leach-Bliley Act of 1999 (GLBA), financial service companies, large banks, or syndicates of midsized banks would be allowed to sell HSA-qualified insurance plans. The law repealed Glass-Steagall, a series of laws enacted beginning in 1933 that prohibited banks from offering investment and insurance services. GLBA allowed financial-service firms to offer investment, commercial banking and insurance services under one corporate roof.

So far, the insurance companies are the only ones taking advantage of the structure allowed under GLBA, primarily "as a defensive measure against the loss of premium revenue into HSA deposits," says Knight. "Hopefully, well-capitalized banks will soon see the wisdom and market advantage of this structure."

But launching an insurance company could be tricky. GLBA confirms that banks can sell certain insurance products, and underwrite certain other insurance products (e.g., credit life insurance). Broader underwriting authority is available if the bank contracts with an insurance affiliate of its holding company. Such an affiliate would not be limited in the range of insurance products it could underwrite, according to Joseph Yesutis, a banking and financial services attorney with Alston & Bird in Washington, D.C. Once the holding company has made the determination to add an insurance-underwriting subsidiary, the question becomes build or buy, he explains.

Regulations May Be Obstacle to Banks

The biggest obstacle to creating an insurance affiliate would be the various state Department of Insurance (DOI) requirements such as rate approvals and reserve and registration requirements, concurs John Hickman, partner and head of the Health Benefits Practice at Alston & Bird. "This DOI infrastructure can take years to develop," he says. "Thus, there likely would be a significant advantage for the holding company to acquire an insurer as opposed to starting from scratch."

And some banks would rather partner with health plans than compete with them. "We see more of an opportunity to partner" with health plans, says Jill Kelly, senior vice president at The Bancorp Bank. "That allows each industry to do what they are good at." Kelly adds that potential synergies might exist between insurers and banks to improve claims-processing efficiencies.

Could Banks Offer Lower Premiums?

A group of midsized banks, according to Knight, could contribute about $15 million to purchase a dormant insurance company that can sell HSA-qualified health plans. "Of course they would have to abide by the same rules that govern other health insurers, but with the right structure, there's nothing that would prohibit a bank from doing this," he says.

The premiums for HSA-based health coverage seem to vary by region. In some states, such as California and Texas, HDHPs are a bargain compared to more traditional insurance products. "But there are other states where agents say they aren't very competitive," says Tim Morales, president of HSA Trustee Services in Lake Geneva, Wis.

Knight says the idea of bank-owned insurance companies could be permanently shelved if the Democrats win the White House and retain both houses of Congress in 2009. The HSA substantiation bill, which died in Congress last month, is likely to surface again in the next Congress if there is a better chance of passing it, according to industry observers. And a law that requires substantiation of HSA expenses would "kill the market penetration" of Health Savings Accounts, according to Knight. Banks, he adds, tend to be conservative and probably won't invest in such a strategy if the next presidential administration doesn't support the growth of Health Savings Accounts.

Posted by Wiley Long at 12:16 PM | Comments (0)

June 19, 2008

How to Manage Health Savings Accounts

Thousands of people now have HSA-qualified health insurance plans, yet many are not taking advantage of the money-saving benefits of a Health Savings Account. Properly funding and managing your HSA can allow you to write off the costs of your medical expenses, reduce your health insurance premiums, get a reduction on your income taxes, and build up money tax-free to cover future medical expenses.

Health Savings Accounts consist of two parts - the high deductible health plan (HDHP), and the Health Savings Account (HSA) itself. By carefully choosing which bank you use to establish your HSA, and strategically choosing how to fund your account and manage your investment, you will be able to get the most return on your money while keeping your expenses to a minimum.

Make Sure to Establish Your Health Savings Account

By switching from a conventional copay health insurance plan to a high-deductible health insurance plan (HDHP), most people are cutting their health insurance costs by about 40% or so. This is such a big savings, that many people neglect to take the next step and set up their HSA. But this is a financial mistake that is costing them money.

Unless you pay no income tax and have zero medical expenses (including dental, over-the-counter medications, or charges for alternative care like chiropractic or acupuncture), you will absolutely save money by establishing your HSA. Just find a good HSA Administrator and get started.

Run All Your Medical Expenses Through Your HSA

Not everyone feels like they have "extra" money that they afford to set aside in their HSA, despite the tax savings and other financial benefits. Even if that's the case, you should still establish your HSA. Every time you incur a medical expense, deposit at least as much money as you spent on that medical expense. For instance, if you went to the dentist and it cost $85, put $85 in your HSA. If you like you can then take it right back out.

What this does is convert this medical expense into a tax-deductible expense. Then when you file your taxes next year, you can put the total amount that you ran through your HSA on line 25 of your 1040, and deduct it from the total income you report.

Cover Your Deductible

Your next step is to get enough money in your HSA to cover your deductible. For 2008, deductibles range from $1100 to $5600 for individuals, and $2200 to $11,200 for families. Annual contribution limits are $2900 for individuals, and $5800 for families. So it could take a couple years or longer to get enough money in your account to cover your deductible.

Once this money is in your HSA, you will have the confidence of knowing that you can cover most any medical expense that comes your way, particularly if you have a health insurance plan that pays 100% after your deductible.

As you continue to build money in your account, you may want to consider switching to a health insurance plan with an even higher deductible, which will further lower your premiums.

Minimize the Fees You Pay

If you will be using your HSA to pay medical expenses as you incur them, you should keep an eye on the fees your bank charges. Until you have enough money in your account to cover any fees with investment returns, you probably want to have your HSA with a bank that charges no fees. (Several are listed on the website referenced above).

If you plan to access money from your HSA to pay ongoing medical expenses, you may wish to keep a portion of your HSA money in a savings account or short-term CD. But to take maximum advantage of your HSA, you'll want to eventually move some of the funds to investments that have a higher potential return.

Investment Options

No other investment has the triple tax-advantage that Health Savings Accounts offer. Not only is your Health Savings Account deposit tax deductible, and your withdrawals to cover medical expenses tax-free, but your investment also grows tax-deferred make Health Savings Accounts a great investment option.

Taking advantage of tax-deferred growth is one of the best ways to build long-term savings. Some banks will provide a short list of mutual funds you can invest in, while others provide access to an online discount brokerage such as Ameritrade where you can choose from stocks, bonds, mutual funds, and more.

The most aggressive strategy is to pay your medical expenses from somewhere other than your HSA, and save the receipt. You can then reimburse yourself at a later date. The additional growth you get from not paying any taxes on your investment may be enough to cover all your medical expenses.

Posted by Wiley Long at 02:39 PM | Comments (1)

May 24, 2008

Banks Offering More Health Savings Accounts

Customers have been asking financial institutions for Health Savings Accounts (HSAs), and according to a survey conducted by Wolters Kluwer Financial Services (WKFS), banks and credit unions are beginning to respond to those requests.

Experts say the increased demand comes from consumers who want more control over their health care. And those customers are using Health Savings Accounts to do just that.

"You're calling the shots," said Greg D'Angelo, a policy analyst with The Heritage Foundation's Center for Health Policy Studies. "You're deciding what services you're obtaining and what the terms are. It's more transparent. You're actually seeing where the money's going. You're more involved. It's more market-based in that sense."

Of the 1,200 financial institutions that responded to the WKFS survey, 62 percent offer Health Savings Accounts. One-third of the rest plan to begin offering them before this summer.

Benefit Consumer, Banker

The financial institutions surveyed told WKFS they are offering Health Savings Accounts because of increased consumer demand and because Health Savings Accounts generate new accounts, boost cross-selling opportunities, and increase revenue.

"Banks and credit unions know Health Savings Accounts present them with a significant business opportunity and additional way to better serve their customers," said Dave Roy, vice president and general manager for banking at WKFS, in a news release.

"But it's also evident that this market is still relatively untapped," Roy noted, "and the greatest potential lies ahead, especially as health care costs continue to climb and consumers look for more effective ways to save and finance those costs."

Need for Consumer Awareness

But Health Savings Accounts have not yet established themselves as a permanent fixture in the health payment realm, D'Angelo said.

"While Health Savings Accounts are growing in popularity with financial institutions, customers are still in the early stages of adoption," the WKFS news release noted, "which may explain why customer demand is cited as both the number one reason institutions began or have not yet begun offering Health Savings Accounts."

D'Angelo explained the novelty of Health Savings Accounts frightens some potential consumers away. Some people fear experimentation with new ways to pay for their health care, so they approach Health Savings Accounts with caution. Others haven't yet grown used to asking questions about how much health care costs.

The survey reported 69 percent of financial institutions have 100 or fewer HSA accounts. Only 84 responding institutions have more than 500.

Helping Drive Change

Health Savings Accounts may relieve part of the crunch of today's health care market, but they're not the ultimate solution, D'Angelo contends.

"Health Savings Accounts are a consumer-driven product, an important component for the consumer-driven system, but they are a product, not a model," D'Angelo said. "We need more of a fundamental transformation in the system."

Nevertheless, D'Angelo believes Health Savings Accounts might help drive that more fundamental change--which the WKFS survey suggests may be coming soon, as both customers and their financial institutions are beginning to warm up to Health Savings Accounts.

Posted by Wiley Long at 09:38 AM | Comments (0)

March 26, 2008

The Entrust Group Unveils Health Savings Account Product

The Entrust Group, a self-directed retirement account provider has announced the launch of their Health Savings Account product -- The Entrust Self-Directed HSA. Like other HSA products, the Entrust Self-Directed HSA can be used to pay for current or future qualified medical expenses, when combined with a high deductible health care plan. In addition, since the funds in the account can be self-directed, the account holder may invest their savings into many types of non-traditional assets, including real estate, notes, mortgages, private placements and more.

"A self-directed HSA allows the account holder a larger choice of investments," said Hubert Bromma, founder of The Entrust Group.

"The great thing about the Entrust Self-Directed HSA is that the account holder can invest the funds in the manner in which they choose, and potentially earn more with the funds in this health care account. The process is easier than most people imagine."

With the Entrust Self-Directed HSA, account holders can:

-- Fund the account with pre-tax dollars,
-- Take distributions for qualified medical expenses on a tax-exempt basis
-- Direct the funds into investments that the account holder chooses and
-- Generate investment growth that is tax-deferred

"This product is a natural fit for us," said Bromma. "It enables us to help ease the concerns of our clients as they relate to health care costs in retirement. Most people probably will shoulder the majority of their healthcare costs during retirement, and this product is set up to help people save for both current and future healthcare costs."

Posted by Wiley Long at 10:14 AM | Comments (0)

March 12, 2008

Mangrove Announces Health Savings Account Product Launches

Mangrove Employer Services, a leading software and services provider of web-based Human Resource Management, Payroll, Benefits Administration and Self Service solutions, announces the launch of its new Health Savings Account and Health Reimbursement Account programs.

Mangrove Employer Services teamed up with an experienced and trusted partner, Evolution Benefits, the technology leader in electronic benefits payment services, in 2007 to provide this new offering.

Their combined solution will provide one centralized, standardized process for Health Savings Account and Health Reimbursement Account administration, a debit card stacking ability, and a flexible, streamlined approach for the participant. It will also complement Mangrove's very successful, existing Flexible Spending Account (FSA) program that experienced 85% growth from 2007 to 2008.

Mangrove Employer Services has also partnered with The Bancorp Bank, an industry leader in Consumer-Directed Healthcare Initiatives, for its HSA offering. A valuable Mangrove partner, The Bancorp Bank will serve as the trustee for the Heath Savings Accounts and provide enrollment services, account documentation, check processing, and access to investment services via its partners.

Jill Kelly, Senior Vice President of Bancorp Bank, stated, "We are pleased to partner with Mangrove to service their new HSA and HRA programs. Leveraging our banking services for the administration of the Health Savings Accounts, these consumer friendly solutions provide easy access to Mangrove's customers' funds as they are needed."

For Mangrove, an industry leader in COBRA compliance administration, Flexible Spending Accounts (FSA), Retiree and Leave of Absence billing, the addition of a Health Savings Account offering was a natural expansion.

Brian Meharry, President of Mangrove Employer Services, commented, "More and more consumers want greater involvement and control with their Health Care options. Our emergence into this HSA program, with such experienced partners, is in direct response to our customers' needs and a rapidly changing marketplace."

Meharry continued, "Mangrove advances its position in the market by providing our existing customers and prospects a single source for these dynamic products, all under one service model supported by leading edge technology."

Posted by Wiley Long at 12:51 PM | Comments (0)

March 04, 2008

HSA Administrator Exante Bank Names New President

Kelvin Anderson has been named president of Exante Bank, a Health Savings Account administrator affiliated with UnitedHealth Group.

Anderson takes over at the Minnetonka-based bank -- just ahead of Exante's and its parent company's Exante Financial Services' name change to OptumHealth Bank and OptumHealth Financial Services. The name change became effective March 3.

Anderson replaced Dean Mason, who left the company to pursue other interests.

Anderson was most recently chief operating officer and chief financial officer of both Escrow bank USA and Capmark Bank, which are based in Salt Lake City.

Exante Bank has more than $540 million in assets and more than 1.3 million in Health Savings Accounts. Their affiliation with UnitedHealth Group has greatly increased the HSA accounts.

Posted by Wiley Long at 08:02 AM | Comments (0)

February 25, 2008

Report Shows Financial Industry is Ignoring Health Savings Accounts

While consumers have an interest in Health Savings Accounts, only a handful of financial companies that provide Health Savings Accounts promote the savings vehicle.

According to a white paper, "Health Savings Accounts as Retirement Savings Protection," UMB Financial Corp. of Kansas City, Mo., New York-based JPMorgan Chase & Co. and The Vanguard Group Inc. of Malvern, Pa., are in a minority of companies that effectively promote Health Savings Accounts on their websites.

The paper was published this month by Boston-based Financial Research Corp.

"If you're a customer and you try to find Health Savings Accounts on some sites, you can't even locate them," said Lynette DeWitt, research director at FRC.

While HSA assets remain low, and while marketing may not be the only answer to bolstering them, Ms. DeWitt believes that improvements in online marketing would help consumers find information on Health Savings Accounts.

She and others in the retirement industry advocate Health Savings Accounts as part of an overall retirement nest egg.

"It's the only account that plays a dual role. The advantage of the account is if you have a health-care problem in retirement, you can draw from this," Ms. DeWitt said.

"But if you're healthy, you can use it for retirement. The advantage of the account is still unsurpassed as a product."

Despite interest in Health Savings Accounts, assets aren't growing fast, because participants are withdrawing money to pay for current health costs, she said.

Ms. DeWitt revised her projection for Health Savings Account asset growth downward, saying Health Savings Account assets will total $15 billion in 2010, up from $4 billion at the end of 2007. A previous white paper published by FRC in 2005 projected that HSA assets would hit $50 billion by 2010.

One obstacle to growth is uncertainty about the product's future in the current political climate. If a Democrat becomes president and pushes forward with a universal-health-care plan, the necessity for Health Savings Accounts could diminish.

Politics notwithstanding, many employees, small businesses and even large corporations are still interested in Health Savings Accounts, said John Heywood, a principal at Vanguard.

Vanguard's HSA assets are roughly $60 million, which is about double what they were a year ago, he said.

Consumers can't purchase Health Savings Accounts directly from Vanguard, but they can receive education and information on Vanguard's site and are directed to other websites where they can purchase products.

"What happens will be mainly driven by the tax code treatment of Health Savings Accounts," Mr. Heywood said. "Today, they're triple tax-free, and it appeals to people."

HSA contributions are pretax, and the earnings on the investment are tax-free as are withdrawals for qualified HSA expenses.

Advisers are continuing to see more interest from clients in Health Savings Accounts, said James J. Holtzman, a certified financial planner and adviser with Legend Financial Advisors Inc., a Pittsburgh-based company which manages almost $350 million in assets.

MORE INTEREST

"We're definitely starting to see more interest in Health Savings Accounts," he said. "I've been talking about it more and more in the last year than I had in the first few years."

Between 5% and 10% of Mr. Holtzman's clients have begun Health Savings Accounts, but he noted that the numbers are lower in his practice because about 70% of his clients are over the age of 60 and many are already retired.

"This tax benefit just doesn't exist anywhere else," Mr. Holtzman said.

Health Savings Accounts continue to gain traction, agrees Eric Remjeske, president of Devenir Group LLC, a Minneapolis firm that provides HSA investment options. He declined to disclose his company's assets under management.

Mr. Remjeske also believes that Health Savings Accounts will be used as a tool for retirement planning.

"We think it's a huge factor in retirement planning that hasn't been taken into consideration to date, and you'll see a lot more of it," he said.

"I think fund companies are paying more attention to Health Savings Accounts, and they realize it's a supplemental planning tool that's becoming more and more important."

Posted by Wiley Long at 07:14 AM | Comments (0)

February 15, 2008

Survey Finds Financial Institutions See Health Savings Accounts As a Significant Business Opportunity

A majority of the nearly 1,200 financial institutions responding to a recent Wolters Kluwer Financial Services survey say they are offering their customers Health Savings Accounts and that the top reason they are doing so is customer demand.

Sixty-two percent of the survey's respondents, a majority of which were community banks and credit unions, said they are offering Health Savings Accounts while more than one in three of the respondents who said they weren't, are planning to do so in the next three months.

Customer demand topped the list of reasons institutions began offering Health Savings Accounts (80 percent). Second on the list was the ability Health Savings Accounts give them to generate new accounts (58 percent), with increasing cross-sell opportunities (51 percent) and growing revenue (51 percent) also noted as significant reasons.

Of the nearly 1,200 financial institutions surveyed, approximately 24 percent said they had no plans to offer Health Savings Accounts or weren't sure of their plans to do so. These institutions cited customer demand, lack of understanding of Health Savings Accounts and lack of management interest in offering Health Savings Accounts as reasons.

While Health Savings Accounts are growing in popularity with financial institutions, customers are still in the early stages of adoption, which may explain why customer demand is cited as both the number one reason institutions began or have not yet begun offering Health Savings Accounts. The majority of institutions responding to the survey reported a small number of Health Savings Accounts.

Sixty-nine percent of respondents reported 100 or less Health Savings Accounts, 18 percent reported 101 to 500 accounts and seven percent listed more than 500.

"Banks and credit unions know Health Savings Accounts present them with a significant business opportunity and additional way to better serve their customers," said Dave Roy, vice president and general manager, Banking, Wolters Kluwer Financial Services. "But it's also evident that this market is still relatively untapped, and the greatest potential lies ahead, especially as healthcare costs continue to climb and consumers look for more effective ways to save and finance those costs."

Wolters Kluwer Financial Services offers financial institutions a comprehensive, compliance-based set of HSA solutions, which includes:

-- HSA Director(TM), an online solution that allows institutions to automate such HSA-related business processes as eligibility, enrollment, account management, claims submission, expense substantiation, receipt storage, reporting, analysis, customer service and Internal Revenue Service (IRS) regulatory form filing;

-- Training to help staff understand and implement an HSA program;

-- Documents required to complete HSA transactions; and

-- A marketing program designed to help promote Health Savings Accounts and ensure the program's success.

To view the survey results, please visit: http://www.WoltersKluwerFS.com/HSAresults

For more information about all of Wolters Kluwer Financial Services' HSA solutions, you can visit: http://www.wolterskluwerfs.com/HSAsolutions

Posted by Wiley Long at 08:39 AM | Comments (0)

February 07, 2008

HSA Bank Reaches Health Savings Account Milestone

HSA Bank has announced that it has become the first Health Savings Account (HSA) administrator in the nation to surpass $500 million in HSA deposits.

"Reaching a half billion dollars in overall HSA deposits is not only a remarkable milestone for HSA Bank, but for the HSA industry as a whole," said Kirk Hoewisch, president of HSA Bank. "This milestone confirms the viability and acceptance of the consumer-directed health care model as part of the solution to the country's health care crisis."

HSA Bank has been ranked as the nation's leading HSA administrator in terms of HSA deposits by Inside Consumer-Directed Care since it first began reporting HSA administrator data in 2005.

HSA Bank serves customers in every state in the nation and has more than 10 years of experience with Health Savings Accounts. HSA Bank continuously strives to offer the best HSA product in the industry. HSA Bank combines convenience, service and savings with low account maintenance fees, competitive interest rates, several investment options, 24-hour account access online or through its automated telephone system, and outstanding personal service.

Posted by Wiley Long at 10:02 AM | Comments (0)

January 26, 2008

Huntington to Offer Health Savings Accounts

Huntington Bancshares Inc. is working to make healthcare more affordable for businesses with their Health Savings Account (HSA), while also helping consumers reduce individual taxes and boost retirement savings.

"Huntington is excited about Health Savings Accounts because they are something better," said Guy Molde, senior vice president of deposit products for Huntington. "There is no other financial product that provides so many benefits to companies that offer them to their employees and individual consumers."

According to Molde, businesses benefit in three ways:

- Lowering the cost of providing health insurance to employees. High deductible insurance plans typically have lower premiums than HMO or PPO-type plans.

- Providing an added benefit to employees at no cost. Many employers are finding that offering Health Savings Accounts along with a high deductible plan, and funding the Health Savings Accounts on behalf of their employees - even up to the full contribution limit - is more cost effective than offering an HMO or PPO plan and eases the transition for employees.

- Taking the administration work out of their benefits department. With Huntington's HSA employees will self-enroll online, and Huntington will provide all of the informational materials, answer employees' questions, do all of the paperwork to set up the accounts and provide year-end tax reporting documents for employees. The company doesn't have to do anything except distribute the materials.

The news is even better for consumers. Health Savings Accounts provide individuals an opportunity to lower their taxes every year they contributed to an HSA. There is also tax savings when consumers spend from their HSA using products or services on the IRS list of qualified medical expenses. Additionally, Health Savings Accounts offer consumers:

- more control over healthcare choices;

- tax-free earnings;

- an inheritable asset.

Huntington's kept flexibility in mind with its account features. "We wanted to make having an HSA easy whether you are a business owner, employee or individual consumer," Molde continued.

Huntington offers easy online enrollment and customer service available 24-hours-a-day. Additionally, the interest earning account includes a check card and unlimited check writing as well as online access to account information and no monthly, set-up or withdrawal fees. The annual fee is $36.

About Huntington

Huntington Bancshares Incorporated is a $54 billion regional bank holding company headquartered in Columbus, Ohio. Through its affiliated companies, Huntington has more than 141 years of serving the financial needs of its customers. Huntington provides innovative retail and commercial financial products and services through over 600 regional banking offices in Indiana, Kentucky, Michigan, Ohio, Pennsylvania, and West Virginia. Huntington also offers retail and commercial financial services online at huntington.com; through its technologically advanced, 24-hour telephone bank; and through its network of almost 1,400 ATMs. Selected financial service activities are also conducted in other states including: Dealer Sales offices in Arizona, Florida, Georgia, Nevada, New Jersey, New York, North Carolina, Pennsylvania, South Carolina, and Tennessee; Private Financial and Capital Markets Group offices in Florida; and Mortgage Banking offices in Maryland and New Jersey. Sky Insurance offers retail and commercial insurance agency services, through offices in Ohio, Pennsylvania, Michigan, Indiana, and West Virginia. International banking services are made available through the headquarters office in Columbus, a limited purpose office located in the Cayman Islands, and another located in Hong Kong. The company is located on the web at www.huntington.com.

Learn more about Health Savings Accounts at: http://www.health--savings--accounts.com

Find more available HSA Administrators.

Posted by Wiley Long at 10:43 AM | Comments (0)

January 13, 2008

Champlain to Manage First Horizon Msaver Health Savings Accounts

Greg Champlain has been named regional sales manager for Ohio for First Horizon Msaver, a leading administrator of Health Savings Accounts. Champlain will support insurance agents and brokers in opening Health Savings Accounts for their group and individual clients who have consumer-driven health plans. Champlain, a licensed health agent, has been a member of the Msaver internal broker support team. He will be based in Columbus, Ohio, starting Jan 7th.

HSA-qualified health plans give all types of employees more control over their healthcare expenses by combining a lower-premium, higher-deductible health plan with a Health Savings Account (HSA). An HSA is an account that an employee uses to set aside funds on a pre-tax or tax-deductible basis to pay for routine healthcare such as office visits, prescription drugs or lab tests. Money that isn't spent during the year rolls over to cover future healthcare expenses.

First Horizon Msaver works with health insurance brokers and agents throughout the country to open and administer HSAs for their customers who select HSA-qualified health plans. In addition, Msaver provides support through internal and external service teams and by providing accredited continuing education seminars.

D.J. Johnson, senior vice president of sales for First Horizon Msaver, said, "Greg has proven to be a valuable team member and we are pleased that we will have someone with his experience and abilities serving the Ohio market."

Posted by Wiley Long at 12:01 PM | Comments (2)

December 20, 2007

HSA Bank Announces New Investment Options

HSA Bank has announced the introduction of its new Mutual Fund Selection investment account option. Through a strategic partnership with Devenir Corporate Services, the national leader in investment options for health benefit plans, HSA Bank accountholders have the option of investing in up to twelve load-waived mutual funds.

"HSA Bank offers investment options to provide accountholders with the opportunity to build Health Savings Account funds at a potentially greater rate of return," said Kirk Hoewisch, president of HSA Bank.

“The Mutual Fund Selection option gives our accountholders access to a professionally managed suite of mutual funds within a self-directed investment platform.”

The mutual funds for the Mutual Fund Selection investment account have been identified as historically high-performing mutual funds and cover a variety of recognizable fund family names, and include Lifestyle funds.

“Experts predict that the average 65 year old couple retiring today will need an additional $200,000 over and above Medicare to pay for medical expenses in retirement,” said Lori Gluth, Senior Vice President, Devenir Corporate Services. “The addition of the Mutual Fund Selection account option allows HSA Bank accountholders to access a cost-effective investment option to grow their HSA dollars to help pay for those future healthcare needs.”

HSA Bank serves customers in every state in the nation and is one of the first financial institutions nationwide to offer health savings accounts. In 2006, HSA Bank was named to the Kiplinger’s Personal Finance “The Best List” as the “best Health Savings Account.” HSA Bank combines convenience, service and savings with low account maintenance fees, high interest rates, investments, 24-hour account access online or through an automated telephone system and outstanding personal service. For more information about HSA Bank, visit our HSA Bank page.

Investment accounts are not FDIC insured, may lose value and are not a deposit or other obligation of, or guarantee by, the bank. Investment losses which are replaced are subject to the annual contribution limits of the HSA. HSA Bank does not provide investment advice.

Posted by Wiley Long at 12:56 PM | Comments (0)

December 09, 2007

Utah to Get New HSA Administrator Option

Utah soon may get a new industrial loan corporation - its first since the industry was thrown into turmoil after Wal-Mart's bid to open its own industrial bank.

Indianapolis-based WellPoint Inc., which operates Blue Cross Blue Shield health insurance plans in 14 states and serves more than 34 million members, has been granted deposit insurance from the Federal Deposit Insurance Corp. for its industrial bank. The company will go by the name of ARCUS Financial and accept Health Savings Account deposits.

It is now waiting only approval from Utah regulators before opening the doors.

"We have their application and will make a decision [on granting them a charter] after we've thoroughly reviewed it," said G. Edward Leary, commissioner of the Utah Department of Financial Institutions.

ARCUS is being organized to accept deposits from many of the 1.3 million WellPoint members who are investing in "Health Savings Accounts," said WellPoint spokesman Jim Kappel. Health Savings Accounts allow consumers to save for future medical and retiree health expenses on a tax-free basis.

"Health Savings Accounts are a growing part of our business and having ARCUS eventually will help us operate more efficiently," Kappel said.

He explained that WellPoint now uses two outside banking partners - J.P. Morgan and Mellon Bank - to help with members health savings plans. "They have been great partners for us and we will continue to use them in the future. As ARCUS gets established, though, we will use it as an opportunity to review our business mix going forward."

Industrial banks, also known as industrial loan corporations (ILCs), were authorized under an exemption in federal banking laws enacted by Congress in 1987. That exemption - some disparagingly refer to it as a loophole - for the first time since the Great Depression gave stock brokerages, retailers and other commercial companies an easy way to own a federally insured bank.

Such banks can issue credit cards, take deposits and make loans. For individual consumers, about the only thing an industrial bank cannot do is offer standard checking accounts - if its assets exceed $100 million. Still, most industrial banks choose to operate within narrowly defined business niches, such as issuing and processing charge card transactions, making automobile or large commercial loans.

Utah's industrial banking industry operated without much notice for years until Wal-Mart in 2005 filed an application to charter Wal-Mart Bank.

Although the giant retailer maintained that it wanted only to use its industrial bank to process its own credit card transactions, its application sparked a firestorm of criticism. Wal-Mart detractors warned that the retailer was preparing to open bank branches in its stores that would damage community banks and the financial services industry across the nation.

And that led to an outcry in Congress, with some legislators arguing that allowing commercial entities such as Wal-Mart to own an ILC threatened to erode the long-standing national policy of the separation of banking and commerce.

In response, the FDIC in July 2006 imposed a six-month moratorium on granting deposit insurance for all ILCs to give Congress time to reassess the law. The FDIC later modified the moratorium to allow ILCs owned by financial entities to get deposit insurance, but continued the ban on granting it for retailers and other commercial businesses.

Although Wal-Mart has since backed away from its plans to open a Utah industrial bank, the retail/commercial moratorium continues. It is due to expire at the end of January.

"We had a number of applications for ILC charters that got caught up in that moratorium," Leary said, indicating they include companies such as Home Depot, Com-Data and the former DaimlerChrysler. The automaker wants to transfer control of its existing Utah-based ILC to a new entity as the result of the sale of Chrysler's assets earlier this year to Cerberus Capital Management.

FDIC Chairwoman Sheila Bair has indicated she intends to lift the moratorium this coming January, said agency spokesman David Barr. "It could be extended, but by that time, the moratorium will have been in place for 18 months and the Senate hasn't even taken the matter up yet."

And Leary said he doesn't care to speculate on whether the federal moratorium will be lifted or what might happen if it does. "But we would welcome the FDIC to lift the moratorium on all industrial bank applications at that time."

Posted by Wiley Long at 11:03 AM | Comments (0)

November 08, 2007

Sovereign Bank Introduces Next-Generation Health Savings Accounts

Sovereign Bank has announced a new Health Savings Account (HSA) program featuring multiple customer enhancements. The new program is based on Canopy Financial's Web-based HealthDirect operating platform.

"Having been one of the first major banks to develop an HSA custodial program more than two years ago, we have had time to study what works and what doesn't for the account holders, employers, brokers and insurers who choose Sovereign's program," said Eduardo Tobon, Senior Vice President, Director of Corporate Alliances and Health Savings Accounts at Sovereign.

"Canopy Financial's HealthDirect platform not only gives us the best HSA solution now, it positions us to stay ahead by virtue of Canopy's continued innovation in the Consumer-Directed Healthcare (CDH) industry."

Canopy Financial, the market leader in financial technology solutions for CDH, has been serving industry-leading financial institutions and health plans since 2004. "Canopy is pleased to be partnered with Sovereign Bank on the launch of their next-generation HSA capabilities," said Jeremy Blackburn, President of Canopy Financial. "Sovereign's thought leadership and commitment to improving the consumer experience positions it as a leader in the HSA market."

Sovereign's new HSA program features an online enrollment facility that allows customers to open and set up funding for their Health Savings Accounts in a single, online session. "Speed in account opening is particularly important at this time of year when many employers hold their annual benefits open enrollment," said Tobon. He added, "having employees' HSAs open and funded simultaneously with their health plan's effective date gives them the full benefit of their HDHP/HSA program from day one."

Other new enhancements to Sovereign's program made possible by the HealthDirect platform include the ability for account holders to invest in a variety of mutual funds, to make online account transfers and bill payments and to keep track of their healthcare spending more efficiently.

Employers who choose Sovereign as custodian for their employees' HSAs will also benefit from the new platform via a comprehensive, online HSA Management System that greatly simplifies tasks associated with HSA program administration including managing employee HSA enrollments and HSA contributions and payroll administration.

See more HSA Administrator options.

Posted by Wiley Long at 09:39 AM | Comments (0)

September 18, 2007

WellPoint Getting Close to Opening Their Health Savings Account Bank

WellPoint, the nation's largest health-benefits provider in terms of membership numbers, has received the Federal Reserve's approval to proceed with its application to open a bank for managing Health Savings Accounts.

The Federal Reserve Bank of New York said in a statement that the Indianapolis-based company's disease management and mail-order pharmacy services are "complementary to a financial activity," moving WellPoint one step closer to circumventing a federal moratorium that bars companies whose primary business is commercial in nature from operating HSA banks.

"The board concludes that the proposed activities do not pose a substantial risk to the safety and soundness of depository institutions or the financial system generally," said the Fed order dated Friday.

The Fed opinion, requested by the Federal Deposit Insurance Corp., clears the way for the FDIC to act on WellPoint's application for deposit insurance for its Salt Lake City-based ARCUS Financial Bank.
If approved, WellPoint's bank would provide financial services to policyholders, including managing money in Health Savings Accounts, said Jim Kappel, a WellPoint spokesman. WellPoint had $51.8 billion in company assets as of Dec. 31, 2006, according to the Fed's order.

WellPoint's proposed bank would be an industrial bank, a state-chartered institution offering many of the same services as commercial banks. Such banks have been the subject of controversy since Wal-Mart applied to operate one in 2005.

You can find more recommended HSA Administrators at: http://www.health--savings--accounts.com/admins.htm

Posted by Wiley Long at 03:18 PM | Comments (0)

July 05, 2007

Health Savings Account Growth Accelerating

Significant investments are being made today to implement Prepaid Health Savings Account cards that will provide significant benefits to cardholders and Third Party Administrators (TPAs). The most important of these is the inventory information approval system (IIAS) that will deliver auto-adjudication, significantly reducing administration costs for TPAs while eliminating the need to submit and file records by the Health Savings Account cardholder.

This report evaluates the size of the Health Savings Account market today and forecasts growth through 2011. It also offers a forecast of the number of Health Savings Accounts that will likely be candidates for HSA Prepaid cards. Not all Health Spending Accounts will be candidates for a Prepaid HSA card. For instance, many HSAs are under funded. Many have very low transaction rates because the owner perceives the HSA more as an investment account than for health spending. Both of these consumer behaviors will reduce deployment of Prepaid HSA cards.

"It is not just account holder behavior that will delay adoption of Prepaid HSA cards," states Tim Sloane, Director of the Debit Service at Mercator Advisory Group. "The broad acceptance of the inventory information approval system is also critical to the value proposition these cards deliver to TPAs. Every time a transaction is not adjudicated it reduces the cost savings the HSA depends on and frustrates the cardholder. It will be years before IIAS works for services rendered at hospitals or doctor's offices - and these account for 51.7% of all healthcare related expenditures according to the AMA."

Highlights of the report include:

- It is very likely that financial asset management firms will spend heavily to advertise the benefits of the HSA as an investment instrument, directly competing with banks for these account dollars.

- It is possible that the next presidential campaign will again focus on healthcare and that a new administration will legislate an entirely new environment - making all existing forecasts obsolete.

- While there are just over 1 million HSA accounts associated with a Prepaid HSA card today, this will increase to 6.5 million accounts in 2011 - a compound annual growth rate of just under 60 percent.

- Broad deployment of IIAS is an important assumption that is built into this forecast. Any additional delays or balkanization of the market into competing systems would significantly lower the forecast.

This report is 35 pages long and contains 13 exhibits, and tables.

Members of Mercator Advisory Group have access to these reports as well as the upcoming research for the year ahead, presentations, analyst access and other membership benefits. You can visit them online at: http://www.mercatoradvisorygroup.com

Posted by Wiley Long at 11:39 AM | Comments (0)

May 07, 2007

Exante Bank Launches New Health Savings Account Designs

Exante Bank is launching three new Health Savings Account designs tailored to meet consumers' individual health care financial needs.

The new Health Savings Account designs are based on consumer research that analyzed the different saving and spending habits of individuals with a Health Savings Account. Depending on whether an individual exhibits the behavior of a health care spender, saver or investor, Exante is offering varying levels of monthly maintenance fees, interest rates and investment thresholds so that the Health Savings Account best matches the individual's health spending patterns and their overall financial philosophy.

- Health eAccess HSA is designed for health care spenders who do not carry a large balance in their Health Savings Accounts and may prefer a basic account with easy access to funds and a lower monthly maintenance fee (waived if the balance is $500 or higher).

- Health eSaver HSA is designed for health care savers who carry higher balances in their Health Savings Accounts in order to take advantage of higher interest-rate returns and prefer to keep most of their funds in an FDIC-insured account. This account carries more competitive interest rates depending on the account balance and maintains free access to investments if the balance exceeds $2,000.

- Health eInvestor HSA is designed for consumers interested in maximizing the long-term savings potential of their HSA for future health care expenses, and who primarily use the account for investing purposes. They can opt for a lower minimum investment threshold ($500) for expanded access to an array of highly rated mutual fund options.

Exante Bank announced the plans at the Consumer Directed Health Care Conference in Las Vegas at the end of April.

“We’ve listened to our customers who’ve told us they want more flexibility and options for their health savings accounts, such as access to tax-savings and convenience with a basic, low-cost account, or more flexibility of FDIC-insured savings combined with mutual fund investments,” said Todd Berkley, Exante’s vice president of HSA Product Management. “By customizing our account options, we’re maximizing the value that Health Savings Accounts deliver to consumers and creating solutions that more closely match their health care spending and saving habits.”

The Health eSaver account is currently available to all new and existing Exante accountholders. The Health eAccess and Health eInvestor accounts will be available beginning in the fourth quarter. Exante will provide consumers with a customized analysis tool to help them decide which account best fits their needs and when it makes sense to switch, at no cost, from one account to another. Employers and other health plans using Exante as their HSA administrator also have the option to offer any combination of these three new accounts to best fit the customized needs of their employees or members.

Learn more about what a Health Savings Account can do for you at: http://www.health--savings--accounts.com

Posted by Wiley Long at 09:45 AM | Comments (0)

March 05, 2007

Blue Cross Blue Shield Banks On Health Savings Plans

Blue Cross Blue Shield members now have their own bank, but it won't help them if they're looking for an auto loan or a good rate on a CD. Blue Healthcare Bank's sole purpose is handling health care-related banking services, such as Health Savings Accounts.

The bank is being set up by the Blue Cross and Blue Shield Association members, including Blue Cross of Idaho, one of the first four members to work with the bank.

The association — a national group of 39 independent insurers — opened the Utah-based bank in January to handle customers’ Health Savings Accounts. It received a Federal Savings Bank charter in February that allows the Blue Healthcare Bank to provide health care-related banking services in all 50 states.

The reason for getting involved in banking is simple — more consumers are turning to the combination of high deductible health plans and health savings accounts as a way to get affordable coverage. Operating a bank is a way to keep these customers happy and maybe increase market share.

Blue Healthcare Bank provides services, such as administering health savings accounts, to the 98 million people nationwide covered by a Blues plan.

Jim Deyling vice president for marketing and sales for Blue Cross Blue Shield of S.C., said they have tens of thousands of current customers who could potentially take part in the new bank.

Deyling would not disclose exactly how many high-deductible plan members the insurer has and not every member opts to start a health savings account.

But these accounts are gaining in popularity because they offer a tax-free way to save money for health needs not covered by high deductible health plans. Such plans typically come with cheaper premiums than traditional health coverage.

By 2010, the Blue Cross and Blue Shield Association predicts between 40 million and 45 million people nationwide will opt for the high deductible coverage making them eligible to open such savings accounts.

Currently, the association estimates about 57 percent of its customers who were eligible to open health savings accounts, did so in 2006. In the coming years, the association expects that number to grow.

“As this trend continues, consumers will be in greater need of reliable financial services,” said a statement released by Scott Serota, chief executive of the association. “The Blue Healthcare Bank responds by providing consumers with access to a trusted and secure financial resource to help them efficiently manage their health care dollars.”

And Serota needs only look at the recent experience of competitor United Healthcare.

Its parent, Unitedhealth Group Co., started its own Salt Lake City-based bank, Exante, to handle the health savings accounts of its high deductible insurance customers.

Exante started handling accounts in July 2003. By December 31, 2006, the bank’s deposits had skyrocketed to $296 million,from the $47 million reported a year earlier.

Having the direct relationship with a bank, Deyling said, will make it easier for Blue Cross Blue Shield to sign up customers for health savings accounts.

Deyling said there is little doubt these accounts are gaining in popularity among customers trying to find a way to provide some level of health insurance for their employees.

For customers, Deyling said another benefit of the Blue Healthcare Bank will come when paying for doctor visits.

“Instead using a regular bank debit card, you can use the Blue Healthcare Bank debit card,” Deyling said.

Find information on Blue Cross Blue Shield plans in your state:

- Blue Cross Blue Shield of Arizona
- Blue Cross of California
- Blue Shield of California
- Blue Cross Blue Shield of Colorado
- Blue Cross Blue Shield of Illinois
- Blue Cross Blue Shield of Nevada
- Blue Cross Blue Shield of Tennessee
- Blue Cross Blue Shield of Texas
- Blue Cross Blue Shield of Illinous
- Blue Cross Blue Shield of Louisiana
- Blue Cross Blue Shield of Missouri
- Blue Cross Blue Shield of Ohio
- Blue Cross Blue Shield of Virginia
- Blue Cross Blue Shield of Wisconsin

You can find out more about Blue Healthcare Bank on their website at http://www.bluehealthcarebank.com

Posted by Wiley Long at 08:53 AM | Comments (3)

January 05, 2007

Health Savings Account Adimistrators Will Help Improve Healthcare

Financial leaders have begun to investigate how to use their transaction expertise to transform another industry: healthcare. While bringing their own houses to an unprecedented level of automation, financial institutions have long cast a covetous gaze at healthcare's inefficient billing, collecting and reimbursement. Now, as the employer-based health insurance model continues to deteriorate, consumers are shouldering an increasing percentage of costs and having a growing role in healthcare decision-making. Health Savings Accounts are playing a major role in this transition.

Such consumer engagement means the healthcare sector is paying closer attention to goals such as transparent pricing, standardized quality measures and electronic medical record-keeping.

But as mass media outlets focus on skyrocketing premiums, they’ve largely missed a strong underlying shift--that financial institutions may soon wield heavy indirect influence in healthcare through their custodianship of Health Savings Accounts.

Their first priority will be to digitise medical records. And if payments to the doctor is conditional on his having electronic medical records, all doctors will fall in line very quickly!

HSA owners will continue to benefit from this movement toward healthcare responsibility. Visit HSA for America to learn more about Health Savings Accounts and how you can take advantage of all the benefits they offer.

Posted by Wiley Long at 09:10 AM | Comments (0)

November 21, 2006

More Banks Offering Health Savings Accounts with Additional Benefits

The number of banks that offer Health Savings Accounts has more than tripled since the end of 2005, as more employees enroll in high-deductible health plans that qualify for a Health Savings Account. Nearly 1,100 banks now offer Health Savings Accounts, which allow consumers to set aside money tax-free for medical expenses.

Larger banks are "increasingly getting into the business, attracted by the lucrative combination of deposits, account fees and sales leads for mutual funds, and other investments generated by HSA customers," reports the Wall Street Journal.

According to the Journal, the "abundance of new Health Savings Account offerings is triggering competition that is helping to push fees lower and expanding the options for consumers to invest their savings." Health Savings Accounts typically accrue interest, but banks increasingly are offering other investment options.

Bank of America this week is expected to announce plans to introduce a new credit card in partnership with major health plans that will allow holders to earn rewards points that convert to cash for their Health Savings Accounts. In January 2007, customers will be able to invest their HSA balances in mutual funds offered by the Bank of America's Columbia Management arm.

In addition, JP Morgan Chase later this month will begin allowing individuals to enroll in Health Savings Accounts online, rather than solely through their employers. The bank also offers mutual fund investments to its Health Savings Account holders.

Experts say the "presence of big banks in the industry is expected to quickly spread awareness and hasten the adoption of Health Savings Accounts," the Journal reports. The total number of Health Savings Accounts by the end of 2006 is expected to grow to about 3.6 million with $5 billion in combined deposits, compared with 1.1 million accounts with deposits totaling $1.2 billion at the end of 2005, according to Information Strategies (Carrns, Wall Street Journal, 11/14).

At HSA for America, you can find more banks offering Health Savings Accounts: http://www.health--savings--accounts.com/admins.htm

Posted by Wiley Long at 11:58 AM | Comments (0)

November 11, 2006

Health Savings Accounts Propel Medical Debit Cards

Could the wave of the future be medical debit cards? How far fetched is it to believe that one swipe of a debit card can reveal your identity, your health record, and your health plan coverage and eligibility information? Not as far fetched as you think. And Health Savings Accounts are helping to propel this type of innovation.

According to HealthLeaders-InterStudy, a provider of managed care and healthcare market intelligence, insurers and payment processors are building technology systems to link banks, payors, providers and consumers together.

The ultimate goal is a smart debit card that will carry all the information needed to make a healthcare purchasing transaction transparent, efficient and seamless.

The majority of health accounts do have debit cards tied to flexible spending accounts and health reimbursement arrangements, which are set up and controlled by employers to pay for employees’ qualified medical expenses. Industry observers say the more recent adoption of Health Savings Accounts, which are tied to high-deductible health insurance plans, will further propel debit card use.

However, most systems do not feature instant processing and approval of a health insurance claim... and without that “real-time claims adjudication” feature, most health purchases cannot be as simple as a department-store purchase.

A few large insurers are making progress. Humana Health Insurance has launched a successful real time claims adjudication system in six medical practice sites so that physicians’ offices can be paid in a matter of seconds. This four-month pilot project enabled the clinic staff at MacGregor Medical Center in San Antonio, Texas, to get a claim back from the insurer so the bill could be presented to the patient on the spot.

United Healthcare is unveiling an integrated ID and debit card that will store members’ identification, eligibility status and health records. Using a card reader connected to the provider’s computer via a standard USB port, the provider can then call up the patient’s information on the UnitedHealth-CareOnline provider portal. This system would enable a claim to be submitted, and within 10 seconds the provider would know the reimbursement and how much the patient would owe.

All this innovation will further help Health Savings Account owners now and in the future. Learn more about Health Savings Accounts at: http://www.health--savings--accounts.com

Posted by Wiley Long at 10:15 AM | Comments (0)

November 05, 2006

Health Savings Accounts Becoming A Paradox for Administrators

Javelin Strategy & Research has published a new report concluding that Health Savings Accounts (HSAs) represent a paradox for HSA Administrators and payment leaders. HSA Administrators cannot overlook the long-term opportunities for asset growth, yet they must plan to address problematic consumer awareness and interest along with other thorny healthcare industry issues.

Here is what the HSA report found:

“HSAs are an important strategic priority for HSA Administrators and financial services executives,” said Bruce Cundiff, Senior Analyst at Javelin Strategy& Research. “But financial institutions must navigate unclear and complicated business-to-business relationships to ensure profitability and customer relationships. The banking industry cannot afford to fumble this opportunity away to the investment sector, as happened with 401(k)s, nor can it take on the mess of the healthcare industry. But consumers must be targeted carefully. Despite their greater use of healthcare services, more than half of all seniors have no interest in Health Savings Accounts, and detailed data-analysis shows seniors may be a much less appealing target than young adults. Financial providers must plan accordingly, as the initial benefits are related to transactions while assets are the long-term play.”

“Consumer-driven healthcare is still years from fruition, and financial executives must enter this new market with keen insight,” said James Van Dyke, President & Founder of Javelin Strategy & Research. “Industry leaders must plan the right steps now to reap long-term rewards. Success depends on thorough market analysis and HSA vendor selection to enable efficient transactions and simultaneous access to a multitude of financial and medical information, all to provide strengthened consumer assets and relationships”.

Learn more about HSAs at: http://www.health--savings--accounts.com

Posted by Wiley Long at 03:39 PM | Comments (0)

October 30, 2006

Health Savings Account Opportunities for Financial Institutions

Thousands of companies nationwide will be offering health insurance plans that qualify for Health Savings Accounts to their employees this fall. Many of these employers are funding all or part of their employees’ HSAs. For banks and credit unions, this provides a great new opportunity to offer a Health Savings Account (HSA) program to their clients.

“Financial institutions that wish to offer HSAs in 2007 must get set up to offer HSAs now,” said Roy Ramthun, Senior Vice President for HSA Clearing. “They need to start marketing now, informing their business clients that the HSA can be set up and held locally at their bank or credit union. Banks and credit unions may not need to open an account until 2007, but they must begin contacting their customers to let them know they will be able to accept the accounts. Once these group HSAs are set up elsewhere, it is difficult to get the employer to change, so it is vital that financial institutions begin educating their customers now during the open enrollment period if they are to capture these HSA accounts. Each HSA is different, as no two people spend or save the same on their health care needs, but from the financial institution’s point of view it’s almost like opening another savings or checking account. It couldn’t be any easier.”

HSA Clearing’s turn-key HSA set up program for banks and credit unions can have them offering HSAs in a matter of days. The HSA monies can now be deposited locally to better benefit the community and their customers. Financial institutions that take advantage of their HSA set up program receive HSA website, HSA forms, Section 125 plans for employer payroll deductions, and the exclusive HSA Rx Card program with real time pricing, which can also be included for all the financial institution’s customers.

You can view a list of current HSA Administrators to see the potential.

Posted by Wiley Long at 08:35 AM | Comments (0)

October 11, 2006

Msaver Offering Comparison and Pricing Tools to Health Savings Account Clients

Health savings account (HSA) customers of First Horizon Msaver will soon be able to compare brand-name drugs and generic alternatives using the company's DestinationRx's proprietary online pharmacy shopping and Rxaminer drug therapy comparison tools. Customers also will be able to get information on the best prices for those drugs at online pharmacies, local pharmacies and retail outlets.

HSA programs give all types of employees more control over their healthcare expenses by combining a lower-premium, high-deductible health plan with a Health Savings Account.

The HSA is an account that an employee uses to set aside funds on a pre-tax or tax-deductible basis to pay for routine healthcare such as office visits, prescription drugs or lab tests. Money that isn't spent during the year rolls over to cover future healthcare expenses. First Horizon Msaver works with employers and employees to set up HSA programs with leading insurance carriers.

"HSA-qualified health plans expose patients to the real costs of prescription drugs. We wanted to be the first HSA company to offer price transparency to pharmaceutical purchases made under consumer-directed health plans," said E. Craig Keohan, president of First Horizon Msaver. "This program not only has the potential to save HSA customers money on their prescription drugs through discounts, but also places them in the position to make more informed decisions about their choice of medications."

The program is expected to become operational next month. The DestinationRx tools allow consumers to find the least expensive drug regimen based on switching to lower-cost branded or generic alternatives. Last year the average savings per search for Rxaminer users was $730 per search for a one-year supply of drugs. DestinationRx's shopping tools allow further savings by identifying the local pharmacy with the best price for those drugs. Consumers can shop for the best price for the drug regimen they need by comparing pharmacies near their homes in addition to on-line and mail order pharmacies.

"The goal of health savings accounts is to encourage consumerism in healthcare," said Toby Rogers, executive vice president, DestinationRx and founder of Rxaminer. "First Horizon is a leading player in the consumerism movement by providing one place for HSA accountholders to learn about their healthcare while also having access to the best tools for managing their pharmacy costs."

Posted by Wiley Long at 09:18 AM | Comments (0)

September 10, 2006

Health Savings Accounts See Surge in Sign-ups

Health savings accounts aren't just for the "healthy and wealthy".

More than 50,000 HSA accounts are opened every month in the United States, according to account administrators, showing the dramatic effect of a relatively new insurance alternative.

"This is the best thing I've seen in health care — and I've been doing this for 31 years", said Tom Voake, a partner in Effective Choices, a group benefit specialist team that is part of Strategic Financial Partners.

“The HSA concept is a strategy, one that allows people to plan for the future by putting the money aside today. In my opinion, this option is perfect for people who have chronic illness.”

Health savings accounts are generally combined with a high-deductible health insurance plan. Once the deductible is met, the insurance companies pay 100 percent of covered medical costs.

In the two and a half years since HSAs were created as part of the Medicare Prescription Drug, Improvement and Modernization Act, consumers and employers have embraced the insurance alternative. In Colorado, more than 26,000 people have health savings accounts, according to the Department of Insurance.

“These plans are unique, they offer no up-front co-pays, but all the money comes out of pocket until the deductible is met,” Voake said. “That’s where the savings accounts come in. They’re portable — like a medical IRA — and have a great tax advantage.”

But the idea is still new, and can be confusing. Voake said the biggest issue is getting employers to realize that the plans have separate parts: the high-deductible insurance plan and the savings accounts.

The high-deductible creates lower premiums, but people must also pay into a savings account to cover health-care costs, he said. That’s where the tax advantage comes in.

Money that is put into a health savings account is not taxed, Voake said, and it isn’t taxed when it’s taken out to pay for medical costs. The federal government limits the amount of money put into a plan, but the lower premiums make saving money for the HSA easier, he said.

“With escalating premium costs for traditional preferred provider or health maintenance plans, employers and consumers can actually save money using a HSA,” Voake said. “You put the money in on a monthly basis, and depending on the employer, there will be some contributions on that end as well.”

Employers can save millions on health insurance costs using the HSA plans — particularly those that pay an employee’s entire premium, he said. But switching to the plans requires a shift in thinking.

“People have to realize how much it really costs to go to the doctor,” Voake said. “Not just their $20 co-pay, but what it actually costs. For some people, it’s too much trouble. But this plan allows people to become educated about what it costs and how controlling that cost benefits them — it’s their money. The biggest hurdle is giving up the prescription cards and taking control of where their money goes. It definitely requires a different thought process. It requires a strategy to pay those up-front costs. But they don’t have a strategy to pay the out-of-pocket costs from a traditional plan.”

Voake said that everyone — regardless of income — can benefit from the health savings accounts. It’s a belief echoed by major insurance companies.

Rocky Mountain Health Plans offers two health savings account plans. Vice President Jim Swayze said the company has seen substantial growth this year in inquiries about the plans.

“There’s a lot of confusion surrounding the plan,” he said. “And so a lot of what we do is communication and education. HSAs can serve a great purpose, but there’s a lot to understand. We expect that people will be signing up as they find out more about the plans and how they work. It can be complex; a lot of it depends on employer contributions and out of pocket alternatives.”

Rocky Mountain Health Plans caters to small companies in Colorado, and Swayze said that most applicants are not from the upper tier income level. He believes that average employees could benefit from the plans — and small businesses that don’t offer health insurance could start, thanks to the lower premiums that come from high deductible health insurance.

Interest in HSAs is growing so quickly that some benefits specialists are predicting the end of traditional insurance. The trends certainly support that outlook: forecasts are that the number of employers offering HSAs will quadruple this year, according to Mellon Financial Group.

And Voake believes the consumer-oriented plans will catch on. Their tax benefits, portability and roll-over status make them attractive to businesses and employees, he said.

“HSAs have long-range benefits,” Voake said. “By the time you’re 65, most of us can’t afford a qualified plan. But you’ve created a pot of money that they can take out to pay Medicare premiums, they can pay for medicine. And they’re not taxed for it. It’s a way to fund retiree medical costs that we haven’t had before.”

The plan also allows people to withdraw money from an HSA for non-medical reasons, he said. That money is taxed the same way a 401(k) withdrawal is taxed.

But some insurance companies believe traditional plans still have a place for employers. At Aetna, Jeff Miller said interest in the plans is rising, but the number of people enrolling in the plans is steady.

“We see far more interest in the plans than we do people signing up for them,” he said. “We have about half a million nationally covered under these consumer-driven plans. So the adoption rates are much less than the interest levels. Basically, it boils down to each customer’s specific needs.”

Voake believes it’s only a matter of education — and of getting people involved in making their own health care decisions.

“I personally think everyone should have one,” he said. “Some people don’t want to be involved, they find it’s easier to deal with a drug card and not worry about the dollars and cents. But this gets people involved in the real costs — medicines don’t cost $10.”

Learn more about Health Savings Accounts at HSA for America - http://www.health--savings--accounts.com

Posted by Wiley Long at 09:18 AM | Comments (0)

August 29, 2006

Health Savings Accounts Growing at a Rapid Pace

Defying critics and demonstrating resilient expansion, Health Savings Accounts (HSAs) continued their strong growth trajectory with indications that this fall's sign-ups will blow passed estimates.

Information Strategies, Inc. quarterly survey of more than 150 HSA custodial advisors indicates that total accounts will pass 3.6 million by January 2, 2007 managing $5.2 billion.

In its latest survey, ISI found substantial growth in deposits, particularly from industry leaders such as HSA Bank reporting 7,000 new accounts in this quarter raising its total accounts to 157,814.

Other custodians report similar increases. It is the new custodians reporting for the first time that indicate growth in HSAs has not slowed but rather deepened.

Based on its collecting of data from more than 150 custodians and reflecting some changes in HSA purchaser patterns first reported in May, ISI is estimating that 1.7 million total accounts will have put away $2.4 Billion in deposits by the end of the second quarter.

From the end of April to the beginning of July, almost all providers reported an increase in the total number of HSA accounts with average deposits growing to $1,940 for those accounts opened more than a year and $1,090 for those opened less than a year, on average.. All banks reported an increase in deposits with $1,200 being the average deposit for each account, though deposits ranged from $450 to $2,316.

Much of the deposited money is staying in the account. The majority of banks surveyed said at least 40% of deposited funds are staying put. Blackhawk Bank, for example, estimates that less than 10% of the money deposited into its HSAs is actually being spent.

Of the providers tracking such information, the majority report more family than individual HSAs. Several reported an even division between family and individual account while many said a majority of accounts were held for individuals. Some banks reported they were heavily focused on individual accounts. American Bank, for example, reported 100% of its accounts are individuals.

Another bank seeing the benefit of individual accounts is Preferred One. Eugene Sako said his bank just started offering individual groups in July 2006 and feels that growth will come through the individual and smaller business markets.

In that vein, surveys by ISI of its business readers surfaced a large swell for HSAs by smaller organizations. Of 1,100 small businesses contacted, less than 10% said they were reducing healthcare expenditures but 55% said they were poised to offer HSAs either as a single option or as part of a suite of healthcare insurance options.

Employers and companies continue to be the source of HSAs for the majority of providers. American Bank, though, reported only 10% of its accounts come from companies or employers, as did Thrivent Financial Bank.

HSA providers are also noticing anecdotal trends within the industry. Many report that education on HSAs has increased so they are opening more accounts for people seeing the benefits of HSAs.

Another anecdotal trend that Blackhawk Bank and Resource Bank reported was a slight increase in HSA fund usage that occurred at the same time gas prices increased. Paula Colling at Blackhawk Bank also pointed out that her bank sees more accounts from states offering a state tax deductibility, like Tennessee, Kentucky and Georgia. States that without such tax deductibility, like Wisconsin, where her bank is located, tend to lag behind, she said.

Visit http://www.health--savings--accounts.com to purchase a high deductible health insurance plan to go with your health savings account.

Posted by Wiley Long at 09:02 AM | Comments (0)

August 23, 2006

United Healthcare Introduces Integrated Health Savings Account Card

To simplify how Health Savings Account owners manage and pay for their health care, and to help medical professionals reduce their administrative burden, United Healthcare is enhancing its health benefit card technology. The Company's new technology will provide the information needed to promptly administer benefits and facilitate health transactions and payments, thus simplifying the process for patients and providing health care professionals with an administrative resource.

The card will also convey essential health records that support care interventions. From a Health Savings Account perspective, these services transcend benefit plan boundaries and traditional geographic limits, enabling HSA owners to have their information and financial resources follow them across products or across the country.

The United Healthcare health card benefits:

-- Fully integrated card will offer access to portable health record, financial accounts and line of credit

-- Electronic eligibility and debit capabilities help simplify the health care experience for consumers

-- Capabilities transcend geographies and product types

Nearly 20 million people already have unique magnetic strip ID cards in their wallets. That card, which was first introduced by United Healthcare three years ago to replace traditional paper ID cards, can verify eligibility and copay amounts with a simple swipe of the card. United Healthcare, through its Exante Financial Services business, is now enhancing its card technology by combining both health care and financial information on a single card in order to support more informed health care consumers.

"By combining health and financial information, we have greatly simplified a series of fragmented and time-consuming experiences for health care consumers," said John M. Prince, CEO of Exante Financial Services. "People are being asked to exercise much more control over how they spend their health care dollars, so it is imperative that we give them the necessary tools to do that in a simple and efficient way."

Eligibility

The integrated card will feature enhanced eligibility verification over the original ID card, providing real-time confirmation of a patient's benefits coverage via the UnitedHealthcareOnline(R) provider portal with a single swipe of the card through a standard card reader. The enhanced eligibility verification will include more extensive benefit plan information than previously available when swiped, thus helping to speed the submission and processing of claims.

"Multi-Purse" Debit Card

Today, even advanced types of benefit ID cards typically contain only health benefit information. Consumers who have a health financial account must carry a separate debit card to access it. Exante's new integrated card will combine these two capacities into one card, while also expanding account access to multiple health accounts, known as a "multi-purse" capability. Combining these onto a single card will not only improve ease of use, but will also enable consumer access for the first time to multiple health accounts (i.e. Health Savings Account, Flexible Spending Account) using the same card. This feature will enhance the patient's ability to pay at point of service in the doctor's office or other care facility.

As United Healthcare prepares to launch a real-time claims adjudication capability, which will enable care providers to process a claim and immediately determine the amount owed by the patient, the ability to pay from any eligible health account at the point of service will become critical. This card will respond to that emerging need.

Portable Personal Health Record

In addition to multiple account access, United Healthcare's new cards will also provide access to an individual's Personal Health Record, making critical health information highly portable. This will allow patients to provide their physicians with secure access to an online medical history summary (currently available via the myuhc.com(R) website). A swipe of the card will give a physician access to the Personal Health Record. That Personal Health Record uses claims data and other data elements to automatically compile a comprehensive summary of medical conditions, medication history, significant medical interventions and laboratory results. In addition, it can be augmented by patients who choose to provide details such as allergies, immunizations and family history.

Line of Credit

Consumers will also soon be able to apply for a line of credit attached to their existing health account debit card to cover eligible health care expenses when funds are not available. This is a common concern for individuals with Health Savings Accounts (HSAs) who may incur medical expenses early in the year, in part because HSAs are funded incrementally over the course of the year. The line of credit will help bridge those early expenses while providing an affordable alternative to putting those charges on a standard personal credit card account.

While many elements of the new card are currently being utilized by United Healthcare-affiliated customers through their existing health benefit cards today, the new fully-integrated card will be made broadly available by United Healthcare beginning in the first quarter 2007.

Visit HSA for America at http://www.health--savings--accounts.com for more information on this new card.

Posted by Wiley Long at 10:23 AM | Comments (0)

August 18, 2006

Golden Rule Uses Exante Bank to Introduce New Health Savings Account Features

United Healthcare's Golden Rule Insurance Company, pioneer of health savings accounts (HSAs) in the individual market, announced that it has begun offering its HSA customers a broad selection of high-quality mutual fund investment options as well as an innovative debit card and online account management and bill paying services through Exante Bank.

Golden Rule Health Insurance helped pave the way for HSAs when it introduced the first medical savings account more than a decade ago. More than 41 percent of Golden Rule's customers currently are covered by health insurance plans that include health savings accounts. As of June 30, 2006, these customers had accumulated more than $170 million in their health savings accounts; the average account balance exceeded $2,400.

With Exante Bank serving as custodian, Golden Rule HSA customers earn 4 percent to 5 percent interest on their FDIC-insured accounts. Once the balance in their health savings account reaches $2,000, customers now have the option to invest any amount in excess of $2,000 in a choice of eight no-load mutual funds, all of which have a Morningstar rating of 4-Stars or higher.

New online account management tools mean that Golden Rule HSA customers also can monitor and change their investments at any time, check balances, pay bills and withdraw funds. The customer, at no charge, can set up automated recurring mutual fund purchases to occur whenever the account balance exceeds $2,000.

Moreover, the Exante MasterCard(R) Prepaid Debit Card provides Golden Rule customers with multiple ways to access their HSA funds, including use at participating pharmacies and doctors' offices or through ATM withdrawals. In addition to the debit card and online bill paying features, customers can use wire transfers as well as a more traditional checkbook if they choose.

"The mutual fund options greatly enhance the long-term savings potential for our HSA customers, while other new consumer-friendly capabilities expand consumers' choices and the ease of using their HSA," Golden Rule CEO Rich Collins said.

Collins said that the application process is a seamless one for consumers, and that HSA deposits are set up on the same payment plan as premiums for the Golden Rule health insurance coverage.

"Our experience shows that customers are saving for current and future health care needs as Congress intended when it passed enabling legislation for HSAs," Collins added. "Today's announcement is the next step in giving consumers additional tools and resources to manage their own health care spending."

Health savings accounts pair a high-deductible health insurance plan with a tax-advantaged savings account. Because HSA plan premiums typically cost significantly less than more traditional health insurance plans, consumers can place some or all of the money saved on premiums into the savings account that can be invested and withdrawn to pay the insurance deductible and other qualified medical expenses. Unspent dollars in a health savings account accumulate year over year, and earn interest like an IRA. The consumer owns the HSA account and decides when to save and when to spend.

Importantly, HSAs offer triple tax advantages: Contributions to health savings accounts go in tax-deductible, grow tax-deferred and can be withdrawn tax-free as long as they are used for qualified medical expenses including vision and dental services.

For more information about United Healthcare and Golden Rule plans, please visit us at http://www.health--savings--accounts.com

Posted by Wiley Long at 10:41 AM | Comments (0)

August 16, 2006

HSA Bank Reports Health Savings Account Balance Growth in 2006

HSA Bank announced its accountholders' average balances have increased by more than $350 to nearly $1,940 during the first six months of 2006. HSA Bank attributes the increase in balances to both a greater number of accountholders saving their HSA funds and an increased level of contributions to individual accounts.

In the first six months of 2006, nearly 52 percent of accountholders saved at least half of their Health Savings Account contributions. The average contribution surpassed the average distribution in 2006 by more than $100 per month, an increase of more than $40 during all of 2005.

"These statistics demonstrate that HSA Bank accountholders are learning how to manage their accounts and in many cases are able build savings for future health care costs," said Kirk Hoewisch, president of HSA Bank.

HSA Bank serves customers in every state in the nation and is one of the first financial institutions nationwide to offer health savings accounts. HSA Bank combines convenience, service and savings with low account maintenance fees, high interest rates for investments, 24-hour account access online or through an automated telephone system and outstanding personal service. For more information about HSA Bank, visit our HSA Bank webpage at http://www.health--savings--accounts.com/admin-hsa-bank.htm.

HSA Bank is a division of Webster Financial Corporation which is a holding company for Webster Bank, National Association and Webster Insurance. With $18.0 billion in assets, Webster provides business and consumer banking, mortgage, insurance, financial planning, trust and investment services through 160 banking offices, 308 ATMs, telephone banking and the Internet. Webster Bank owns the asset-based lending firm Webster Business Credit Corporation, the insurance premium finance company Budget Installment Corp., Center Capital Corporation, an equipment finance company headquartered in Farmington, Connecticut and provides health savings account trustee and administrative services through HSA Bank, a division of Webster Bank, Member FDIC and equal housing lender.

Find more HSA Administrators on our website: http://www.health--savings--accounts.com/

Posted by Wiley Long at 10:46 AM | Comments (2)

July 22, 2006

Health Savings Accounts Will Make Affordable Health Care Possible

There have been outcries in the U.S. for a health care system that is government administered and regulated. Such systems in the rest of the industrialized world have inevitably led to long, sometimes fatal, delays in elective specialty referral and treatment. Primary care and emergency care are usually adequate, because failure in these more common areas of care would have political consequences.

Consumer-driven health care, best represented by Health Savings Accounts, controls cost while preserving choice and availability of quality health care.

Health Savings Accounts provide funds to pay medical expenses, tax free, up to the deductible and are owned by the individual for life. HSA funds cannot be used to purchase general medical insurance, and HSAs are not available to Medicare or Medicaid participants.

Unused HSA funds earn tax-free, compound annual interest and can be used to purchase insurance between jobs. At retirement, the HSA can be converted to an IRA or used to pay for Medicare premiums and deductibles, but not Medigap insurance. At death, the HSA passes to the spouse or to the estate if the spouse is deceased. Patients regain choice in all aspects of their medical care but must assume more responsibility, thereby reducing waste.

As of March, 6.3 million HSA plans and health reimbursement arrangements (similar to HSAs) had been sold with $6.9 billion deposited in the tax-free accounts. The U.S.Treasury Department estimates there will be 20 million to 25 million people covered by HSAs by 2010, under present law, and 40 million to 45 million if Congress expands HSAs, as President Bush has proposed.

Early concerns, that HSAs only favored the wealthy, healthy and young, appear unfounded. Of HSA participants, 37 percent previously had no health insurance; 40 percent earned less than $50,000 per year; 50 percent were over age 40; 19 percent were over age 50; 73 percent are families with children. Premiums ranged from $100 to $460 per month. Patients with chronic conditions are more compliant, and there is increased use of wellness and preventive medicine programs.

Deloitte Consulting, in a new study of large employers, found the cost of health benefits increased 2.8 percent in 2004 and 2.6 percent in 2005 in companies with HSA-type plans. HMOs, PPOs, point of service, and fee for service plans increased by 21/2 to 3 times as much.

The private sector, with governmental support, is engaged in solving the following problems: hospital and physician price transparency; the association of HSAs with comparatively inefficient PPOs; the lack of availability of HSAs to Medicare, Medicaid, and state high risk pool participants; and the danger that an aggressively promoted socialized system will pre-empt the development of HSAs.

Innovative plans are being developed and, in some cases implemented, to allow many Medicare, Medicaid and high risk pool patients to enjoy the choices and responsibilities of the mainstream of health care. Fewer patients will be totally dependent on government-run programs, which could then be funded and administered more effectively.

Learn more about Health Savings Accounts at HSA for America.

Posted by Wiley Long at 10:14 AM | Comments (0)

May 03, 2006

Custodial Health Savings Account Funding Nearly Doubled In 1st Quarter 2006

Not only are the number of Health Savings Accounts going up but the amounts deposited with custodial institutions are also soaring, according to preliminary quarterly reports from more than 100 banks.

In conducting its quarterly survey of HSA custodial banks, Information Strategies, Inc. is finding that average dollar deposits have gone beyond the $2,000 mark.

HSA banks report the number of accounts are moving upward in a trend that will result in more 3.6 million by the end of the year. At the same time, banks report seeing significant indications that depositors are funding their accounts to the maximum allowed by regulators.

In several cases, banks are reporting that average deposits nearly doubled from year-end totals.

The bank survey is in the process of being completed and will appear later in May.

This report is in line with results from ISI’s latest user poll which indicated that a majority of health savings account owners planned to keep funds in their HSA accounts for either emergencies or retirement.

Posted by Wiley Long at 08:29 AM | Comments (0)

March 23, 2006

United Healthcare leading the way in Health Savings Account Plans

United Healthcare underwritten by Golden Rule Insurance company reports 40% of all insurance plans they sell are Health Savings Accounts. As UnitedHealthcare's individual insurance provider, Golden Rule offers health savings account plans, other high deductible plans and traditional copay plans in addition to Short Term Medical. "Saver" options within many of the plans feature Golden Rule's lowest premiums for consumers who previously thought they couldn't afford health insurance.

United Healthcare Golden Rule HSA helped pioneer health savings accounts. United Healthcare customers typically save 45 to 55 percent or more in premiums by choosing a health savings account plan over a more traditional plan.

Today, 40 percent of health plans purchased from Golden Rule throughout the country are HSAs and its customers have accumulated more than $155 million in their tax-advantaged savings accounts.

United Healthcare currently does health insurance business in 28 states and is rated "A" (Excellent) by A.M. Best, and "A+" (Strong) by Standard & Poor's, independent rankings that indicate financial strength and stability. In addition, for eight consecutive years, Golden Rule has been ranked by Ward Group as one of the 50 Life-Health top-performing companies that have done the best job of balancing financial safety, consistency, and performance over the past five years.

For more information on United Healthcare and Golden Rule and the many other companies that sell Health Savings Account plans, please visit: http://www.health--savings--accounts.com

Posted by Wiley Long at 10:58 AM | Comments (2)

March 10, 2006

Consumer HSA Money Creates Competition

Within the last two years, Americans have deposited nearly $1 billion in tax-advantaged health savings accounts. The estimates are based on financial data provided by more than 60 financial firms.

In 2003, a provision in the Medicare Drug, Improvement and Modernization Act of 2003 gave birth to Health Savings Accounts. The accounts are similar to 401(k) retirement plans in their portability, and can be opened by anyone who has a high-deductible health insurance plan.

HSA administrators and custodians have collectively opened more than 820,000 accounts and say they are adding about 60,000 new accounts each month. The average balance is $1,181. The number of accounts have quadrupled over the past year from 20,000 to about 80,000. A listing of prefered HSA Administrators can be found at: www.health--savings--accounts.com/admins.htm

Now that HSA assets are pushing $1 billion, we should start to see competition really heat up as more national firms, small community banks and local credit unions join the competition.

We are already starting to see some large health insurance companies launch their own financial firms to seize an even bigger slice of this emerging market. Last December, the Blue Cross Blue Shield Association said it would open its own Blue Healthcare Bank in early 2007.

Health Savings Accounts are continuing to grow. Please get the word out to your friends. For more infomration on Health Savings Accounts, please vist our HSA Information page.

Posted by Wiley Long at 11:11 PM | Comments (0)

January 24, 2006

Have You Opened Your Health Savings Account for 2005 Yet?

There are thousands of people who have purchased a High Deductible Health Insurance Plan (HDHP) in 2005 and, for one reason or another, have yet to open a Health Savings Account (HSA) for tax year 2005.

HSA for America wants to remind you that April 15, 2006, which falls on a Saturday this year, is the last day that you can open and contribute to an HSA for the tax year 2005.

You must have had a qualified high deductible health insurance plan for at least one full month in 2005 to open an HSA and claim an HSA deduction for 2005. You must pro-rate your contributions by the number of full months you had the Health Savings Plan.

• You are not allowed to reimburse yourself for qualified health care expenses until you open a Health Savings Account, so whether you purchased your HDHP last year or it took effect 01/01/06 the most important thing to do next is to establish an HSA somewhere, so you can reimburse yourself going forward.

• Shop for the HSA that fits you. Make sure you compare the different HSA administrator fees. Some providers charge monthly or annual fees. Some even charge to use the debit card. These costs can add up.

• Always keep your receipts for your HSA qualified health care expenses.

• You can use your HSA a forced savings account, and continue to pay your health care costs out of pocket. There is no time limit for when you can reimburse yourself for your health care expenses; you just need to keep legible receipts and records in case you do reimburse yourself at a later date, or in case you are audited.

• You decide whether to spend from the account for your health care expenses and how much to spend, or whether to spend out-of-pocket and to save the HSA money for the future.

Visit HSA for America to find out all you need to know about Health Savings Accounts.

Posted by Wiley Long at 09:24 AM | Comments (0)

January 11, 2006

Banks to pursue Health Savings Account business

Banks increasingly are viewing health savings accounts as a lucrative source of potential income and are promoting themselves as naturals for managing them, according to industry insiders.

Last month, The Health Savings Account Council, a Washington-based trade organization, was launched to promote the use of Health Savings Accounts and the interests of banks that administer the accounts.

The council, with 12 initial member companies - nine of which are banks - is an offshoot of the American Bankers Association, also based in Washington.

Banks will provide to non-bank financial advisers a reliable local source for administering HSAs, said Kevin McKechnie, staff director at The HSA Council. "And clients have the option of directing the bank to allow their adviser to choose the investments for the accounts."

In addition to establishing a new trade group, banks recently have taken several other initiatives to drum up more Health Savings Account business.

Wells Fargo & Co. in San Francisco began administering HSAs for select Blue Cross Blue Shield plans.

U.S. Bancorp in Minneapolis started offering HSAs to individuals and small businesses through its branches, website and call center.

And JPMorgan Chase & Co. in New York partnered with Louisville, Ky.-based health insurer Humana Inc. so that clients can sign up for services from both companies at the same time. "For bank advisers, this will be one more product to sell - and a very big one," Mr. McKechnie said.

Too small for brokers

"Brokers will start sniffing around HSAs when they smell higher-balance accounts with a minimum of $50,000," said Alenka Grealish, manager of the banking group for Celent Communications LLC, a Boston-based consulting firm for financial institutions. Banks, on the other hand, have the ability to efficiently manage accounts as small as $500, added Ms. Grealish, who works in Celent's Portland, Ore., office.

"When an account grows to over $5,000, the banks with broker-dealer subsidiaries can transfer the amount in excess of $5,000 to their broker-dealer," Mr. McKechnie said.

"The banks with broker-dealers are building integrated platforms so they won't lose these accounts in the same way they lost much of their individual retirement account business to outside broker-dealers and mutual funds," Ms. Grealish said.

"Banks have been paying a lot more attention to HSAs but have been slow to understand what the opportunities are," said Eric Remjeske, partner at Devenir LLC, a Minneapolis firm that developed an investment platform for HSAs. "Many banks are in the early adapter phase, using their proprietary, in-house money market and mutual funds to invest HSA assets," he said.

Banks will have to offer a greater variety of investments, such as brokerage accounts, if they want to attract HSA customers, Ms. Grealish added.

"They can't treat HSAs like savings accounts," she said.

Insurers start banks

Some health insurance companies have been forming banks to handle the financial aspects of HSAs, which are written in conjunction with high deductible health insurance plans, Mr. McKechnie noted. "That's competition for our banks, and there might be some conflicts in that model," he added.

"Federal law says that the HSA is the property of the individual who can choose the institution that will manage the account," Mr. McKechnie said. He pointed out that many people do business with the same bank for decades but change health insurers every few years.

America's Health Insurance Plans, based in Washington, is the major trade association representing insurers that provide the high-deductible health plans written in conjunction with HSAs.

Nevertheless, health insurers will be welcomed into the HSA Council, according to Mr. McKechnie, and one of the initial members is Assurant Health in Milwaukee.

"You can't have an HSA without an insurer," Ms. Grealish said.

Diversity needed

"In time, it would be good to broaden the organization's membership to include other participants in the HSA market. It's important to unify the independent efforts of these participants," Mr. Remjeske said.

"The council appears to be heavily bank dominated," Ms. Grealish said.

"Insurers may be worried that money will flow out and go on the banks' books instead of theirs," she said. "This is the banks' way of pushing back to secure their position."

But the organization is needed and is an important step in ensuring the integrity of the product and consistent policies, Ms. Grealish added.

One of the vexing problems that banks will have to confront is the proper use of the debit cards that clients use to pay health-related expenses, as people could conceivably use the cards to buy anything.

"The card can't distinguish between asthma medication and a case of beer," Mr. McKechnie said. He noted that it is the client's responsibility to obey the tax laws controlling the use of HSA funds and that the banks try to help by providing educational materials on appropriate card usage.

Please visit our HSA Administrators page for a complete listing of banks offering Health Savings Accounts.

Posted by Wiley Long at 09:46 AM | Comments (0)

December 31, 2005

More banks offering Health Savings Accounts to pay bills

A growing number of banks are beginning to offer health savings accounts, which are paired with high-deductible health insurance plans and poised to become the hottest thing in health coverage since HMOs.

Consumers like the convenience because a Health Savings Account can be linked to a checking account, allowing them to use debit cards to pay medical bills.

Banks benefit because HSAs attract customers and deposits can be used for everything from mortgages to car loans.

LaSalle Bank, for instance, introduced its Health Savings Account a week ago and plans to launch an advertising campaign in January.

"Although the high deductible health insurance plans are not the most prevalent offering today, the research we did indicates that is the direction they will be moving," said Diane Berner, senior vice president in charge of the bank's consumer deposit product management.

Created in 2003, an HSA allows individuals and employers to set aside money before it's taxed to pay for doctor, hospital and other medical bills. Unlike flexible spending accounts, the money in HSAs can be rolled over year after year. The money earns interest or can even be invested in mutual funds and remains with the holder through job changes and retirement.

Having the money available allows individuals and employers to buy a less-costly, high-deductible health insurance policy to cover expenses once they exceed at least $1,000 for a single person and $2,000 for families.

It can be a way for individuals to find more affordable health plans for themselves and their families and can be an alternative for employers who want workers to share more of the ever-growing costs of health coverage.

Berner anticipates LaSalle will see some interest from individuals and small-business customers in the first part of the year with a flurry of interest toward the end of the year when companies go through open enrollment for 2007 coverage.

"We have had quite a bit of interest, especially recently," she said. "Definitely there is some pent-up demand."

Blue Cross Blue Shield of California partners with Wells Fargo Bank on its Flexible Blue HSA product.

Employers and employees can work with any bank they want to, but there are advantages to using Wells Fargo, explained Don Whitford, director of product development at BCBS.

BCBS members have access to Wells Fargo investment and lending products, for one.

Employers make pretax payroll deductions directly to Wells Fargo. If an employee chooses to use a different account, the money is not automatically deducted and individuals have to reconcile it on their taxes at the end of the year.

A big attraction to BCBS in deciding to team with Wells Fargo is that the bank requires customers keep only $100 in cash in their accounts and everything above that is invested. Other banks require much higher cash balances -- typically $1,000 or more -- before they will invest it.

"That can take years to build up," Whitford said. "If you think about it, as a member, you're two concerns are 'How much do I have to have in this cash account before I can invest and what are my investment options?' Wells Fargo has six options from conservative to risky."

Blue Cross Blue Shield Association earlier this month announced plans to start its own bank to manage members' health savings accounts. Only one health insurer -- United Health Group Inc. -- has formed its own bank, called Exante.

Whitford said Blue Cross Blue Shield is working with the association in creating the bank, but has not committed to joining it.

"We have to wait and see how it fits into the market and evaluate it," he said.

To set up an HSA, a customer must have a qualified high deductible health insurance plan. It is the bank's responsibility to make sure customers understand that requirement but not to enforce it.

"The burden is on the customer to know what kind of insurance they have," Berner said. "We don't require that potential customers prove they have a high-deductible plan. Banks are not required to be the HDHP police."

Because of the extra reporting requirements, LaSalle charges a $25 fee to customers to maintain an HSA.

The number of banks offering HSAs appears to be relatively small, but it is expected to grow considerably over the next year or two, as more and more employers adopt consumer-directed health plans that typically include health savings accounts.

Posted by Wiley Long at 08:51 AM | Comments (1)

December 21, 2005

American Express Enters the Health Savings Account Market

Some in Washington, D.C. consider the entry of American Express into the Health Savings Account market to be one of the most important events in the Health Savings Account industry this year.

American Express branding, and there debit card offering certainly is another example of the U.S. financial industry entering the U.S. health care market with new products.

Allowing a credit line to be utilized first, to keep the Health Savings Account funds growing in size as an investment fund, has significant long-term implications for the number of assets in HSAs, should this model be adopted nationally.

Empire Blue's American Express Card for HSA Offers Credit Options.

Under an innovative feature, employees could apply for a credit line so the card could be used to pay for expenses that exceed their HSA balances.

More details on American Express soon.

Posted by Wiley Long at 12:47 PM | Comments (0)

December 16, 2005

Blue Cross rolls out new Health Savings Account Bank

Blue Cross announced they will start their own bank, Blue Healthcare Bank, to manage the rollout of health savings accounts (HSAs) and other so-called consumer-driven health plans.

Blue Cross is following in the footsteps of UnitedHealth Group Inc., which launched Exante Bank in 2002. Both health insurers say the banks will help lower costs by allowing consumers to manage their health savings account money the same way they pay bills with their savings and checking accounts. Blue Healthcare Bank, which will be based in Salt Lake City, will debut in late 2006.

"Once we activate consumers, things will never be the same," said Mark Banks, chief executive of Blue Cross of California.

Both Blue Cross and UnitedHealth face stiff competition from bank behemoths such as U.S. Bancorp, Wells Fargo & Co. and Bank of America Corp.

They all are enrolling consumers in HSAs, tax-free savings accounts in which consumers can pay medical expenses and/or invest their money in mutual funds.

The number of HSAs will jump from 1 million this year to 15 million to 25 million by 2010, according to a report by DiamondCluster International Inc., a management consulting firm in Chicago. Those HSAs, in turn, will hold about $75 billion in assets.

Starting a bank, though, is not easy because of the sheer volume of regulations that governs the industry. That's why only major health care providers like UnitedHealth and Blue Cross can do so, said Karen Garrett, a banking attorney with Bryan Cave LLP in Kansas City, Mo.

"It takes a lot of time and resources to start a bank," she said. "It also takes a long time to gain approval."

Created by Congress in 1993, HSAs can help reduce health care costs for employers by shifting to workers more responsibility for how their health care dollars are spent, experts say.

Participants enroll in a low-premium but high-deductible ($2,600 for individuals, $5,250 for families) plan. The money accumulates in the HSA tax-free, carries over to the next year, and stays with employees even if they switch jobs.

For Blue Cross CEO Mark Banks, Blue Healthcare Bank can help lower administrative costs by bundling the 70 million potential HSA customers from 39 Blue Cross plans across the country.

More important, he said, the bank will help consumers make better decisions about health care by providing them with information like monthly account statements and services like debit cards and Internet banking.

For instance, a consumer could pay for a doctor visit by swiping an HSA-linked debit card. As with any savings and checking account, the user could deposit and transfer funds into an HSA and pay medical bills over the Internet.

In the past, "consumers were insulated from the cost of health care," Banks said. "They never saw the bill. Now they can see the cost of health care, which will make them more accountable."

Blue Cross consumers will have the opportunity to invest their money through the bank and let the funds accumulate in the HSA tax-free. UnitedHealth's Exante, for instance, recently announced that HSA customers can invest their money in well-known mutual funds such as Vanguard Global Equity and John Hancock Classic Value.

But significant obstacles remain. It will take time for consumers to comprehend HSAs, said Jon Christianson, professor of health policy and management at the University of Minnesota's School of Public Health.

For consumers to assume greater control over their health care dollars, insurance companies like Blue Cross must find a way to present complicated information like prices in a way consumers can understand, Christianson said.

Banks agreed.

"We have to make it simple for people to use," he said. "We have to reaffirm the trust" people have with their bank and insurance provider.

Posted by Wiley Long at 09:58 AM | Comments (0)