Benefits January 30, 2007

Companies Can Encourage Employee HSA Involvement

January 30, 2007 (PLANSPONSOR.com) - A Minneapolis-based Health Savings Account (HSA) provider asserted that there are ways for employers to generate more worker interest in the account by, among other things, offering online enrollment.
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A UnitedHealth Group news release said this “greater engagement” in HSA plans is also encouraged by a company contribution to the HSA and “thorough” communications about the benefit design.

An analysis by UnitedHealth Group of 25,000 HSA enrollees whose employers use the comprehensive plan design approach United advocates, found that a majority of those individuals open the bank account, contribute their own funds and carry balances over from year to year.

According to the press release, the analysis also found that:

  • Integrating the health plan and bank account increases the rate of account openings.The greatest single influence on the account opening rate is whether employer funding is provided; 91% of consumers open the account when their employer makes a contribution.
  • Individuals and their employers are contributing to the accountsAbout 70% of UnitedHealth Group’s employer clients contribute to their employees’ HSA with average employer contribution of $895.
  • Consumers are using the accounts as a savings tool. Some86% of individuals carried an HSA balance into 2006 with an average account balance of $815 at the end of 2005.
  • Lower income consumers show just as much interest in opening and funding their HSA.

More information about the company is at www.unitedhealthgroup.com .

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