Integrating a credit card with a high deductible insurance program is becoming almost an everyday occurrence as HSAs move towards the one million-unit mark before year-end.
At the same time, Information Strategies Inc.’s beginning of the year prediction of more than one million accounts by the end of 2005 is proving prophetic.
For 2006, Information Strategies, Inc. is predicting more than 4 million new accounts by the end of the year as the pace of new offerings and approaches to consumer directed healthcare and other announcements are expected soon.
With the announcement by Empire Blue Shield/Blue Cross of its affiliated offering with American Express barely digested, US Health and Life Insurance Company has announced its own version.
The Empire Blue Cross BS announced the debut a groundbreaking new health care debit card from American Express, and not the VISA card that was announced just one week ago by Blue Cross Blue Shield Association.
According Consumer Driven Market Report, moreover, the two announcements combined are a major shift in the debit card market—for the past three years only branded cards and banks have captured large market share in this space. Health insurers are apparently going to go directly to VISA and Amex in many cases, not large national banks or financial institutions.
New Direction For HSAs
In effect, the decision represents a new realization by some carriers that they can leverage their legal authorization as an HSA custodian to co-brand their HSAs with nationally-recognized card companies—the same thing many banks are offering. Insurers are the same as banks under the HSA law.
At the same time, many community banks are jumping into the HSA market, predicted to reach more than 23.7 million accounts and $94 billion in assets by 2010 according to Information Strategies Inc.
More than 100 banks have added their listing to free tracking service offered by www.hsafinder.com since September 1, 2005.
Also highlighted by Consumer Driven Market Report is a plan by physicians in several states to test online fees and appointments in exchange for guaranteed payment using a card or line of credit. The publication also reports that this new development makes the Empire card a perfect product to replace PPO fee schedules over time, and may mean a new era of 'hybrid' CDH products that supplement spending accounts and revolutionize payments to physicians.
US Health and Life Insurance Company is offering a High Deductible Health Plan (HDHP) with a Health Savings Account (HSA) program featuring a debit card, integrated prescription card, and a simple banking solution. The program, designed to make the transition from a traditional health insurance plan to an HDHP with an HSA easier for consumers features a variety of benefits not offered by many other HSAs offered in the insurance industry.
"When we designed our HSA program we looked at the new legislation as an opportunity and a challenge to create a product that not only met the mandate intended by Congress and the President, but also to integrate every benefit we could for our members right out of the gate," said Christopher Cobb, HSA Project Manager for US Health and Life.
Some Differences, But Thrust The Same
While many companies offer High Deductible Health Plans with HSAs, the US Health and Life HSA plan features benefits many companies have not yet implemented including:
- An HSA Debit Card that will allow members to access their HSA funds directly without the need for cumbersome checks or reimbursements at a later date. The Debit Card works just like a checking account, complete with monthly statements, toll-free support, and on-line tools where members can access their HSA account, view transactions, transfer funds, invest, and more 24 hours a day.
- An integrated Rx card, insuring compliance with current laws to relieve any unnecessary worry on the part of the consumer. Additionally, unlike many "discount cards" offered in the marketplace, US Health and Life's Rx card helps consumers obtain favorable pharmacy network pricing at set rates. No hassles. No haggling.
- A simple banking solution. US Health and Life has taken the fear out of HSA savings by partnering with MSAver a company that specializes in assisting consumers who enroll in HSA's to invest and maintain their HSA accounts.
"We believe the President and Congress have provided health insurance consumers with a great opportunity in the new legislation," said Cobb, "by offering a variety of plans with a range of deductibles as well as the debit and prescription cards, and simple banking, we believe we've made it easy for our customers to choose an HSA plan."
American Express Offering
American Express and WellChoice, Inc., the parent company of Empire Blue Cross Blue Shield, also have announced an agreement to offer a new healthcare payment solution that includes the Empire Total Blue consumer-directed health plan, a Health Savings Account (HSA) from American Express Bank, FSB, and the new American Express HealthPay Plussm Card that provides easy access to the HSA funds.
“Empire Total Blue has been a very successful addition to our product portfolio, meeting the needs of large and small employers alike,” said Jason Gorevic, chief sales and marketing officer of WellChoice. “The addition of the American Express HealthPay Plus Card brings an innovative new dimension to this market leading product. We’re excited to be collaborating with American Express to deliver this unique healthcare payment solution to the market.”
“The healthcare payments industry is growing rapidly as more and more companies turn to consumer-directed healthcare programs for their employees,” said David Bonalle, vice president of Advanced Payments at American Express. “We are delighted to bring together WellChoice’s expertise as the largest health insurer in New York and American Express’ experience as a leading payments provider to offer customers unique and valuable healthcare payment solutions.”
WellChoice will offer its consumer-directed health plan in conjunction with the new healthcare payment solution from American Express to provide employees, employers and healthcare providers an easy, secure way to manage healthcare costs and payments. Empire Total Blue gives consumers the tools and resources to help manage their healthcare decisions and finances more effectively than traditional managed healthcare plans. The new healthcare payment solution from American Express is integrated with WellChoice’s claims process to simplify the payment process, giving consumers more control over their healthcare dollars and enabling physicians and hospitals to save on billing and collections costs.
More Details
The HSA, which will be offered in conjunction with Empire Total Blue and is a product of American Express Bank, FSB, will enable employees to contribute pre-tax dollars to the HSA, including through payroll deductions at an employer’s election. Employees will own and control the funds and may use them for medical needs, including prescription drugs, medical office visits, deductibles, co-insurance payments and other qualified expenses. Employers also can contribute funds to employees’ HSA.
The new HealthPay Plus Card from American Express will enable employees to pay for qualified medical expenses from the funds in their HSA. The Card will provide cardmembers with greater control of their healthcare finances and help them maximize the tax savings advantages of the HSA. Cardmembers may also apply for a credit line, which may be accessed with the Card. Those who are approved for the credit line can choose to pay their qualified medical expenses with funds from the credit line and save their HSA funds for future medical expenses or use credit line funds to help cover costs that may exceed the balance in their HSA.
American Express and WellChoice plan to offer the healthcare payment solution to corporations beginning in early 2006.
American Express Company (www.americanexpress.com) is a diversified worldwide travel, financial and network services company founded in 1850. It is a world leader in charge and credit cards, Travelers Cheques, travel, business services and international banking.
WellChoice, Inc. is the parent company of the largest health insurer in the State of New York based on PPO and HMO membership. WellChoice, through its Empire Blue Cross Blue Shield subsidiaries, has the exclusive right to use the Blue Cross and Blue Shield names and marks in 10 downstate New York counties and one or both of these names and marks in selected counties in upstate New York. WellChoice offers a broad portfolio of products, including managed care and traditional indemnity products, and has a broad customer base including large group, middle-market and small group, individual, and national accounts. Additional information on WellChoice can be found at www.wellchoice.com.
