J.P. Morgan Shares Best Practices for Implementing a Health Savings Account Program
Report provides companies a framework to effectively build and manage an HSA program
New York, NY - J.P. Morgan today issued a report titled “Best Practices for Implementing a Health Savings Account (HSA) Program” providing a step-by-step guide for employers who want to offer an HSA program to employees.
Many companies are finding that the addition of an HSA option to their healthcare benefits menu presents a practical solution to the health insurance challenges they face. The adoption of HSAs has seen significant growth since they were created in 2004. By year-end 2008, there were an estimated three million HSAs with deposits of over $3 billion - and the number of HSA accounts is expected to quadruple by 2012, according to Celent.
“HSAs provide an affordable health insurance option and continue to grow in popularity,” said David Josephs, head of consumer-directed healthcare at J.P. Morgan. "This report shares the lessons learned in areas that have resulted in successful programs for many of our clients and provides a framework to ensure that a company’s benefit offering is competitive in the marketplace and offers the best value for both the employees and the company.
J.P. Morgan was one of the first banks to offer HSAs and has extensive experience in the consumer-directed healthcare industry. The bank administers HSA programs for nearly 10,000 companies and provides HSA cash and investment services for hundreds of thousands of individuals nationwide.
The best practices presented in this report reflect J.P. Morgan’s experience meeting the needs of companies representing the full spectrum of American employers - ranging from small companies with two employees to large firms with more than 100,000 employees.
Some of the best practices highlighted in the report include the following:
* Designing an HSA program to meet short and long-term enrollment goals. Companies that are successful at introducing an HSA plan do so by designing a plan that is simple to understand and easy to use; usually provides 100% coverage for preventive care services; offers a line of credit to cover any unexpected medical expenses; generally contributes to employee HSAs; and promotes employee education on healthcare costs.
* Selecting an HSA administrator with requisite expertise and core capabilities to meet a firm’s and its employees’ needs. Companies should choose an HSA administrator that offers a simple enrollment process with customizable employee communication and enrollment materials; provides comprehensive reporting with a dedicated support team; and has a strong reputation and balance sheet to depend on during difficult times.
* Effectively communicating the benefits of an HSA to employees. Companies have learned that a well thought-out, staged employee communications plan rolled out over several months in advance of the actual enrollment period allows employees time to fully understand the new benefits - and reduces confusion during the busy enrollment season. Professionally developed, extensive communication tools can answer questions and address concerns about HSAs.
About J.P. Morgan Healthcare Solutions
J.P. Morgan Healthcare Solutions provides a comprehensive suite of products, services and financial settlement tools for consumers, insurers, physicians, hospitals and other healthcare providers through two core businesses, Consumer Directed Healthcare and Business-to-Business Solutions. J.P. Morgan Healthcare Solutions is part of the firm’s Treasury Services business.
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