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HSA Market Report

November 2007

HSA Market News, November 2007; Volume 4, Number 11
HSA bank deposits top $2BB…BCBS-FL to double CDHP lives…Aetna, Empire agree to new model for physician rankings…Optima offers HSA plan…ACMI adds WI HSA plan…HealthPartners eyes CDHP gains…Avalon adds Tenet to network…CDHPs hit 5% share…HSA plans cover preventive…Chart: HSA deposits, 22 banks…Tower rolls out eHSA…and more…

BANKS TOP $2 BILLION IN HSA DEPOSITS
Twenty-one leading banks had 1.479 million health savings accounts with an estimated $2.078 billion in total deposits as of Sept. 30, 2007, according to a tally by HMN.

BCBS-FL TO DOUBLE HSA, HRA LIVES IN 2008
Blue Cross Blue Shield of Florida (Jacksonville, FL) expects membership in its HSA and HRA-compatible high-deductible health plans to double in 2008 to about 160,000 lives, up from 80,000 in 2007, according to John Kaegi, senior vice president of marketing. The company’s preferred HSA bank is Mellon. HSA and HRA enrollment will make up close to 4% of BCBS-FL membership in 2008.

AETNA, EMPIRE SIGN ONTO NEW MODEL FOR PHYSICIAN RANKINGS
Aetna Inc. (Hartford, CT) and WellPoint’s Empire Blue Cross Blue Shield unit have separately agreed to adopt physician ranking methodology developed by the New York State Attorney General’s office.

OPTIMA HEALTH OFFERS HSA PLAN THROUGH HEALTHEQUITY
Optima Health Plans (Virginia Beach, VA) announced that it would offer an HSA-compatible high-deductible health plan administered by HealthEquity (American Fork, UT). Optima, with 34,000 members, offers group, Medicare and Medicaid health plans.

TOWER BANK OFFERS HSA FOR HIGH UTILIZERS
Tower Bank (Ft. Wayne, IN) rolled out in October a new HSA product called eHSA targeted at “transactional” HSA customers who utilize healthcare and frequently access the funds in their account, said Wendell Bontrager, senior vice president and chief deposit officer.

AVALON ADDS TENET TO NETWORK
Avalon Healthcare (Tampa, FL), a consumer-directed health plan founded by former Oxford Health Plans executives, has added 11 Tenet Healthcare Corp. hospitals to its southern Florida network. The contract also includes Tenet ambulatory and imaging centers in southern Florida. Avalon offers HSA and HRA-compatible high deductible health plans.

CDHPs HIT 5% SHARE, MERCER SAYS
About 5% of employees among companies surveyed by Mercer, a unit of Marsh & McLennan Companies (New York), were enrolled in a consumer-directed health plans in 2007, compared to 3% in 2006.

MOST HSA PLANS COVER PREVENTIVE CARE, AHIP SAYS
A study of 36 HSA-compatible high-deductible health plans shows that 84% offer first-dollar coverage of preventive care.

AMERICAN COMMUNITY ADDS HSA PLAN IN WISCONSIN
American Community Mutual Insurance Co. (Livonia, MI) announced that it will offer HSA-compatible high-deductible health plans in Wisconsin. The HSA plans will be offered along side several health plan options being launched by ACMI in the state. Others include a variety of PPO and tiered plan offerings.

HEALTHPARTNERS EYES 25% GAIN IN HSA, HRA LIVES
HealthPartners (Bloomington, MN) said it expects to add 10,000 HRA and HSA-compatible high-deductible health plan lives in 2008, bringing consumer-directed lives to 50,000, up from 40,000 in 2007.


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