Mellon & Great-West Health to offer HSAs

November 11, 2004 ( - Great-West Healthcare has teamed up with Mellon Financial's Resources & Investor Solutions to offer a health savings account (HSA) for employer-sponsored health plans.

The plan will be available January 1, when the new plans are allowed to be offered to employers, according to a press release. People can access HSA funds through debit cards or checkbooks, and can invest HSA funds over an account minimum threshold in mutual funds offered by The Dreyfus Corporation. Participants can check account balances online, according to the release.

HSAs are tax-favored savings accounts that must be used in conjunction with a high-deductible health plan. The funds can be used tax free for medical expenses. The minimum deductible for qualified plans in 2004 was $1,000 for individuals and $2,000 for families; deductibles for 2005 have yet to be set for HSAs.

Great-West Healthcare ( ) is an employee benefits provider that covers almost two million people. Mellon’s Resource & Investor Solutions is part of Mellon Financial ( ), a global financial services company.