Health Savings Accounts January 1st, 2008
HSAs a golden opportunity
President Bush’s push for portable Health Savings Accounts could make such plans more attractive in multiple industries, according to a recent report.
Health care executives, insurance executives and financial executives should take note of the cross-industry benefits of the President’s agenda, notes “Winners and Losers at Healthcare’s Last Frontier”, presented by management consulting firm DiamondCluster International.
An analysis conducted by DiamondCluster notes the cumulative revenue impact of HSAs over the next 5 years and anticipates that these accounts will account for more than 10 percent of insured lives by 2010.
The report predicts that the 15 to 25 million individual HSAs will account for more than $75 billion in assets within 5 years. Financial institutions have the potential to capture $3.5 billion in revenues driven by account and asset management fees.
“The President’s proposal further opens the door for financial services firms, particularly in serving the largest and most sophisticated employers.” said Aamer Baig, a partner in DiamondCluster’s financial services practice. “These employers will expect best-of-breed benefits, including superior service, real-time claims adjudication, high-quality information and tools for employees to manage their health expenses and medical decisions and a range of funds and services for managing the assets they hold in their HSA accounts.” Baig said.
“Owning the customer experience offers greater long-term profit potential, and puts the financial services firm in a stronger position to provide such issues as health care financing, provider bad debt and claims adjudication.”
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