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.

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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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