Infinisource announces reduced-cost HSA solution

COLDWATER, MI – A great deal of interest in Health Savings Accounts (HSAs) has hit the benefit market since the Medicare reform law established the accounts in late 2003. As health care premiums continue to rise as much as eight percent for 2006, employers are looking for ways to reduce costs for group health coverage and many are considering offering a High Deductible Health Plan (HDHP) along with an HSA.

Infinisource is introducing a new, lower-cost solution specifically designed with the investor in mind. The program provides four reimbursements per year, free, along with the current investment features of The Charles Schwab Trust Company, which is used to house the accounts, making it possible for participants to select from mutual fund options. In addition, the Infinisource HSA may be offered under a cafeteria plan to save tax dollars for both the employer and employees. The newest lower-cost HSA does not carry a debit card option.

“By using The Charles Schwab Trust Company to house these HSA accounts, it makes it possible for a participant to get market driven earnings, something many HSA participants desire anyway,” said Infinisource Vice President of Business Development Charles Koser. Employees are also offered a fixed rate of return option.

An HSA provides employees with a powerful financial incentive to use health care services more carefully. In the case of HSAs linked to HDHPs, funds remaining in the account that are not used to pay for uncovered health care expenses, such as those falling under the deductible, can be rolled over year to year to pay for health care expenses in succeeding years. Additionally, when an employee retires, funds can be withdrawn tax-free to pay for retiree health care expenses.

A survey released by Mellon’s Human Resources & Investor Solutions revealed more employers are planning to offer HSAs in 2006. Seven percent currently offer the plans while the survey found 32 percent are looking at offering the option for 2006. Many employers, as much as 66 percent of employers surveyed, are expected to contribute to the accounts, as well as offering them at open enrollment.

As health benefit costs continue to rise, more employers are seeking consumer driven health care (CDHC) programs to control costs. An HSA is an excellent vehicle for accomplishing that goal. Participants are now experiencing first hand the benefits of choosing a HDHP. HSAs are gaining momentum and now is the time to provide groups with an alternative tool to lower healthcare costs with an HSA coupled with a HDHP.

For more information on individual or group HSAs, call our office at 800-779-6384 or email solutions@infinisource.net.

Infinisource is a leading provider of employee benefits administration solutions in the United States. Services include COBRA, HIPAA, FSA, Health Reimbursement Arrangements, Premium Billing and Enrollment and Eligibility. Founded in 1986 to ease the administrative complexity of COBRA compliance for employers, Infinisource serves more than 1 million insured in 48 states, and has educated over 250,000 people in employee benefits administration compliance. For more information, please visit the Infinisource web site at www.benefitsolved.com, call 800-779-6384 or email solutions@infinisource.net.

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