With the growth in consumer-directed plans, banks are seeing an increase usage of health savings accounts (HSAs).
Bank of America recorded a 34% growth in HSAs in 2011, adding more than 50,000 accounts!
HSAs are used to work with a high deductible health plan. The account is owned and managed by the employee and earns tax-free interest. It can be carried over from year-to-year and moves with the employee wherever the employee goes – new job, changing health plans or retirement.
Kevin Crain, head of Institutional Retirement and Benefit Services for Bank of America Merrill Lynch explains some of the benefits of HAS accounts.
“In addition to the tax benefits, these accounts offer individuals more control over their health care spending and the option to accumulate longer-term health savings,” says Kevin Crain, head of Institutional Retirement and Benefit Services for Bank of America Merrill Lynch. “They also encourage more responsible use of health services and lifestyle decisions.”
Contact CPI-HR for more information about the HSA administration services we offer.
