In tonight’s State of the Union Address, President George W. Bush is expected to tout Health Savings Accounts (HSAs) as a key element of his ongoing healthcare reform agenda, including provisions that may include raising the annual HSA contribution amount. The President may also discuss providing tax credits to individuals who purchase Individual Medical insurance coverage.
“The President’s strong support of HSAs reflects the many benefits they are providing to millions of Americans. They are reducing healthcare costs, making healthcare more accessible and putting consumers in charge of their own healthcare decision making and financing,” said Don Hamm, President and CEO of Assurant Health. Assurant Health offered the first HSA and is a leading driver of their growth.
Hamm also believes the new provisions will encourage many more consumers to purchase their own healthcare coverage. “HSAs have already given consumers powerful new healthcare options. The new proposals will make HSAs even more flexible and affordable—and therefore more attractive to Americans with or without coverage. We also strongly support tax equity for individuals purchasing their own health insurance.”
A recent survey by America’s Health Insurance Plans (AHIP), "Individual Health Insurance: A Comprehensive Survey of Affordability, Access, and Benefits," reinforces the many benefits of HSAs. Recent findings show that:
• HSAs are gaining momentum. Preliminary results from a January 2006 survey by AHIP revealed that enrollment in HSA plans has tripled over the last twelve months. More than three million lives now covered by an HSA-qualified high-deductible health plan.
• HSAs have broad appeal. HSAs are taking hold across all segments of the population. Seventy percent of Assurant Health’s HSA policyholders have been families with children. 61 percent are over the age of 40. 29 percent have household incomes of less than $50,000. And importantly, 44 percent of applicants did not indicate they had prior health insurance coverage. This suggests that HSAs have powerful appeal to those who live without health insurance coverage of any kind.
• HSAs are a valuable financial tool. HSAs are already providing millions of Americans with a valuable tax-free savings and retirement planning vehicle. The next generation of HSAs will look more like 401(k) retirement accounts. For example, Assurant Health provides online tools that help HSA owners manage account transactions with an integrated, secure website, as well as through a debit card and checkbook. It has recently expanded its offering to allow HSA owners to invest account assets in mutual funds.
About Assurant Health
Assurant Health has been in business since 1892. Assurant Health's underwriting companies provide health insurance coverage for more than one million people nationwide. The companies’ primary products include individual medical, small group, short-term and student health insurance products, as well as non-insurance products and consumer-choice products such as Health Savings Accounts and Health Reimbursement Arrangements. With almost 3,000 employees, Assurant Health is headquartered in Milwaukee, Wis., and has operations offices in Minnesota, Idaho and Florida, as well as sales offices across the country. Assurant Health is the brand name for products underwritten and issued by one or more of Assurant Health’s underwriting companies – Time Insurance Company, John Alden Life Insurance Company and Union Security Insurance Company. The Assurant Health Web site is www.assuranthealth.com.
Assurant Health is part of Assurant, which offers specialized insurance products and related services in North America and selected other markets. Its five key business units – Assurant Employee Benefits, Assurant Health, Assurant Preneed, Assurant Solutions and Assurant Specialty Property – have partnered with clients who are leaders in their industries and have built leadership positions in a number of specialty market segments in the U.S. and selected international markets. Assurant is traded on the New York Stock Exchange under the symbol AIZ. The Assurant Web site is www.assurant.com.
Editor’s Notes:
To schedule an interview with Don Hamm, Assurant Health’s President and CEO, please contact Peter Duckler at HLB Communications, Inc. at 312/423-4930; pduckler@hlbcomm.com.
The AHIP report, "Individual Health Insurance: A Comprehensive Survey of Affordability, Access, and Benefits," can be found at www.ahipresearch.org.