May 23, 2008
Does anyone have a statistic on how many people with HDQPs actually go ahead and open an HSA?
I don't about the statistic, but my guess would be not many. If you care about the client, you will make it very easy for them to do and strongly suggest it. Most clients when they understand the concept will contribute at least something.
I call it an "IRA on steriods": You get the usual deduction, but if you use it for medical expenses when you retire (and there will be expenses), that money will never be subject to income taxes. Not too many programs provide that (I can't think of one).
Forgot where I read it but I believe it was between 5 and 10 percent.
Its hard to convince people in a country with a 0% savings rate to contribute "in addition" to their premiums.
I guess it depends on your market. The affluent small business owner is more likely to open than the Internet customer that was on Medicaid two months ago.
I am also dissapointed in the street rates from the carriers and renewal increases sometimes 20 to 40% , largely due to blocking - but most customers (and agents) do not understand the dirty secret of Individual business (blocking).
If the HSA account open rate is that low - HSA BANK USA is knocking them dead with $300 million + in deposits?
Unless they are all group clients.
When I had HDHP, I opened HSA. Employer's $1k contribution helped a lot. HDHP/HSA combo's super!
I've also found that most don't open it up unless they do it with the application.
When I follow up later they just haven't had time, etc.
I've also found people with current HDQPs that didn't know you had to have the HSA open before the date of the claim. They thought they could just do it all at the end of the year. Don't know whether to blame agents or clients.
Blame the agents, not the people. The customer needs all the help they can get from the agent. HSA's account for about 5% of my business, but 100% open and fund accounts. I'm sure that if I were doing alot more of them, then that 100% would fall considerably, however, if the participation rate is 5-10%, Nationally, as indicated above, then that's pathetic. The agents or the carriers, whoever is writing the application is doing a poor job of screening and placing applicants in these policies.
I beg your pardon.
I show them how to save $300 - $600 per month in premiums. If they can't take at least part of that and put it away that is not my problem.
why tie up your money in a low return account that can not be accessed unless a medical need may or may not arise.... but if you open the account and do a minimal fund and keep it open or even if you get cancer then open an account and run your deposits thru it when you do hit a really big bill then the clients are ahead of the game....
I agree. I always recommend but most don't open the HSA.
Even if the HSA account was not available, wouldn't the health plan still be better for most people? Obviously it is otherwise 75-80% of my clients would opt for something else.
A high deductible plan stands on it's own "feet." The HSA account is a bonus - and one that I took.
Separate names with a comma.