When Are HSAs Going To Hit The Big-Time?

The Health Savings Account initiative has been getting a lot of press. Both the mainstream media and insurance trade journals have been covering and criticizing this new insurance trend.

A lot has been said on both sides of the debate. But regardless of whether you love or hate them, HSAs are starting to take off. They still have a way to go before they become truly widespread. But their popularity is growing – between 2005 and 2006 the number of people enrolled in an HSA tripled to almost 3 million.

Who’s Buying Into The HSA Market?

Critics suggest that HSAs are only designed to appeal to people who are young, healthy, and wealthy. But the numbers behind HSA enrollment don’t back up those claims. Among people who enrolled in HSAs:

• 57% were more than 40 years old
• 29% made less than $50,000 a year
• 40% did not have health insurance before enrolling

Contrary to critics’ expectations, HSAs are attractive to people from a variety of backgrounds. So you should think about marketing HSA-compatible insurance, no matter what the make-up of your client base is.

How HSAs Benefit Consumers – And The Industry

Consumers benefit from HSAs in two ways – they save money on premiums and they get to play a larger role in directing their own healthcare. Aetna conducted a study of people enrolled in its health reimbursement plans – arrangements very similar to HSAs but 100% employer-funded, and not always portable from job to job.  The Aetna study found two important things:

• 50% had money left in their account at the end of the year
• Use of preventative care increased 23%

That second statistic is important. Not only does preventative care increase the health and wellness of the consumer, but it also reduces the need for expensive care further down the road. This means fewer large payouts for carriers, fewer premium hikes for consumers, and happier clients for you.

How To Work This Emerging Market

If you want to cash in on in the HSA trend, make sure your prospects know you’ve got their needs covered. They can’t enroll in an HSA without a High Deductible Health Plan (HDHP) – and they need to know you can get them that plan.

You also have to target the right prospects. This is where using the internet can give you an edge. People are online right now looking for information about their health insurance options. When you purchase internet leads, you get those people – interested and active prospects – brought directly to you.

HSAs and HDHPs aren’t right for everyone. Though they’ve proven more popular than critics expected, there are people for whom the High Deductible plan just doesn’t make sense. That’s where you come in. As a health insurance professional, you can help your prospects determine what kind of coverage they need. They end up with better coverage to help them lead healthier lives. And you end up with increased commissions.