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HSA Market Report

September 2007

HSA Market News, September 2007; Volume 4, Number 9
Retail clinics post big losses….Health Net taps BOA….UniCare launches CDHPs…Humana expands “no worry”…Fontis offers HSA web site…CDHP members take charge…Study projects CDHP gains…WellPoint makes P4P payments…Chart: Retail clinics…Retail clinic volume tiny…Chart: MCOs, retail clinics…and more…

HEALTH NET TAPS BANK OF AMERICA
Health Net (Woodland Hills, CA), which has been slow to fully embrace HSA plans, announced that it has partnered with Bank of America (Charlotte, NC) to provide HSAs to its consumer-directed plan members.

WELLPOINT’S UNICARE OFFERS CDHPs
UniCare (Chicago), a unit of WellPoint Inc. that markets health plans outside the company’s Blue Cross Blue Shield markets, has launched a new line of consumer-directed health plans called Solaura for small and large groups and individuals.

RETAIL CLINIC LOSS RUN-RATE IS $87 MM
The burgeoning retail clinic industry is losing money at an annual run-rate of $87 million on annualized revenues of about $130 million, according to the newly released study, Retail and Onsite Clinics: Fad or Future?

RETAIL CLINICS GENERATE TINY VOLUME OF MCO CLAIMS
Given the tiny volume of patients going through retail clinics—and the fact that retail clinics are just beginning to enter into provider contracts with health plans—it’s not surprising that the number of retail clinic claims being processed by managed care organizations is tiny.

HUMANA EXPANDS “NO WORRY” PLAN
Humana (Louisville, KY) said it is now offering its “No Worry” plan in 17 states. The plan offers small employers (51-99 employees) rate guarantees if they commit to moving to a consumer-directed health plan over three years.

FONTIS LAUNCHES ONLINE HSA EDUCATION, INCENTIVES
Fontis Healthcare Services (Franklin, TN) has announced the launch of an online education and enrollment platform for employers offering HSAs.

BCBS SAYS CDHP MEMBERS TAKE CHARGE OF HEALTH
A new study from the Blue Cross Blue Shield Assn. (Washington) says that members of consumer-directed health plans are “more engaged in wellness programs and are more likely to plan and save for healthcare expenses than those in traditional healthcare coverage.”

EMPLOYERS EXPECTS CDHP GAINS, HEWITT STUDY SAYS
Employers said they expect 20% of employees to enroll in consumer-directed health plans within five years, up from just 3% currently, according to a study by Hewitt Associates (Lincolnshire, IL). More than 20% of employers offer or plans to offer a high-deductible health plan with an HSA by the end of 2008 and almost half are considering offering an HSA plan at a future date.

AETNA OFFERS PERSONAL HEALTH RECORD TO FEHBP
Aetna Inc. (Harford, CT) announced that every member of the Federal Employees Health Benefits Program who chooses the Aetna consumer-directed health plan option will now have access to an online, password-protected personal health record. As of Sept. 1, Aetna had 26,000 FEHBP enrollees.

WELLPOINT’S BLUE CROSS-CA PAYS $69 MM IN P4P
Blue Cross Blue Shield of California, a unit of WellPoint Inc. (Indianapolis), announced that it had paid out $69 million in bonuses to 176 physicians participating in the company’s 2006 pay-for-performance program. Blue Cross-CA has been involved in pay-for-performance programs since 2001.


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