HSA and Canopy Financial
- Thread starter Clarion
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- 1,459
HSAs are a niche product in the group market, at least from what I have seen. The employer raises the deductible, generates savings, but gives all/most of it back to the employees to help with their deductible funding. The employer doesn't save much money and has more administrative responsabilities. I love HSAs for the self employed owner with a family policy, but I've found for group coverage it rarely fits. Others may disagree.
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- #4
Why does the employer HSA have more administrative responsibilities?
From the stats I have been reading the largest growing market for HSA's are in the small group market. It sure seems as if there is a bunch of savings to be had if a company would switch over.
How much push back would there be if a company would just give everyone raises (plus deposits in to an HSA) and had them buy insurance on the open market? Especially with the new health care bill that seems to be coming that would seemingly cap rates, and not allow denial of coverage based on pre-existing conditions.
From the stats I have been reading the largest growing market for HSA's are in the small group market. It sure seems as if there is a bunch of savings to be had if a company would switch over.
How much push back would there be if a company would just give everyone raises (plus deposits in to an HSA) and had them buy insurance on the open market? Especially with the new health care bill that seems to be coming that would seemingly cap rates, and not allow denial of coverage based on pre-existing conditions.
- 4,096
I have had great success with putting group HSA's in place.
Long term the client can save significant premium. What has to be looked at over time is the contributions to the HSA accounts.
For example a group of 25 lives I have saved about $200,000 in 4 years in premium. The employer has reduced the HSA contribution each year. The employees are not that happy but the rate increase have been close to single digit.
The problem that I see right now with the carriers is I think the HSA plans should be about 20% cheaper than what they are espically when you start looking at co insurance.
My sources are tellling me that if a group runs well the insurance carrier is making about 30% more on an HSA than what they would on a traditional plan.
So other issues with the carriers are they are grouping their HSA business with thier tarditional block which results in higher rate increases. There is no reason they should be group those two blocks espically under 50 lives.
So the big problem is that you can design a high deductible plan with co pays, co insurance and a high OOP can be cheaper than an HSA. The employees like having a co pay and not having to think about anything.
Long term the client can save significant premium. What has to be looked at over time is the contributions to the HSA accounts.
For example a group of 25 lives I have saved about $200,000 in 4 years in premium. The employer has reduced the HSA contribution each year. The employees are not that happy but the rate increase have been close to single digit.
The problem that I see right now with the carriers is I think the HSA plans should be about 20% cheaper than what they are espically when you start looking at co insurance.
My sources are tellling me that if a group runs well the insurance carrier is making about 30% more on an HSA than what they would on a traditional plan.
So other issues with the carriers are they are grouping their HSA business with thier tarditional block which results in higher rate increases. There is no reason they should be group those two blocks espically under 50 lives.
So the big problem is that you can design a high deductible plan with co pays, co insurance and a high OOP can be cheaper than an HSA. The employees like having a co pay and not having to think about anything.
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- #6
My colleague was kinda successful. I'll let him join in this forum to tell his experience.
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