ObamaCare + HSAs = Opportunity

Transcription

1 Titian 2301 Thursday, July 24, :00 2:00 p.m.; 2:15 3:15 p.m. ObamaCare + HSAs = Opportunity Kevin Boyles, CISP, CIP, Vice President, Business Development, Ascensus ObamaCare + HSAs = Opportunity Presented by Kevin Boyles, CISP, CIP Ascensus 1

2 Today s Topics HSA overview History Related terminology and definitions The current state of HSAs The impact of ObamaCare The opportunities for your credit union HSA-Related Terminology Health Savings Account (HSA) Health Reimbursement Account (HRA) High Deductible Health Plan (HDHP) Consumer Directed Health Plan (CDHP) Healthcare Exchange ObamaCare The Affordable Care Act (ACA) 2

3 Health Savings Account HSAs first available Jan. 1, 2004 Defined eligibility requirements Originally intended for small employers 100% Small Employers Offering Health Care 90% 80% 70% 60% 50% 65% 65% 62% 59% 60% 59% 62% 59% 68% 59% 61% 57% 40% 30% 20% 10% 0% SOURCE: Kaiser/HRET Survey of Employer-Sponsored Health Benefits,

4 Health Savings Account HSAs first available Jan. 1, 2004 Tightly-defined eligibility requirements Originally intended for small employers Mostly adopted by large employers Growth of HSA-Eligible Plans % 20% % 19% % 17% % 13% % 92% 95% 8% 8% 5% Other Plans HSA-Eligible % 4% % 1% % 1% % 0% % 0% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% SOURCE: Kaiser/HRET Survey of Employer-Sponsored Health Benefits,

5 Health Savings Account HSAs first available Jan. 1, 2004 Tightly-defined eligibility requirements Originally intended for small employers Mostly adopted by large employers Reminiscent of IRAs Health Reimbursement Account (HRA) Employer-funded Predates the HSA In severe decline Employer has control of funds 5

6 HDHP & CDHP HDHP = High Deductible Health Plan Generally eligible to pair with HSAs Rapidly growing prior to ObamaCare CDHP = Consumer Directed Health Plan Insurer term Generally interchangeable with HDHP Healthcare Exchange Also referred to as Health Insurance Marketplaces (HealthCare.gov) Federal Exchange State-Run Exchanges Partnership Exchanges 6

7 Exchange Types By State Federal State Partnership SOURCE: Kaiser Family Foundation ObamaCare & The ACA ObamaCare Affordable Care Act ACA The Patient Protection and Affordable Care Act of 2010 (PPACA) 7

8 The Current State of HSAs 10.7 million HSAs (1/1/14) Surpassed $20 billion in 2014 Average balance in 2013 was $2,311 2,200 banks and credit unions offered HSAs as of January 1, 2014 The Rise of the HSA 70% of all HSAs have been opened since % of HSAs with contributions also had a qualified distribution in 2013 HSA growth is in both the Individual and the Employer spaces Investments on the rise as average balances grow 8

9 HSA Asset Growth $25 $20 National HSA Assets (in billions) $19.3 $15 $15.5 $10 $9.9 $12.2 $5 $0 $7.2 $5.5 $3.4 $ SOURCE: Year End 2013 Devenir HSA Research Report (2/14) Account Growth HSA Accounts in Millions SOURCE: EBRI Health Savings Accounts and Health Reimbursement Arrangements: Assets, Account Balances, and Rollovers, (1/14) 9

10 The Impact of ObamaCare Employer mandate for companies with 50+ employees The individual marketplace HSAs will survive ObamaCare (for now) HDHP Enrollment Number of Covered Lives in Millions SOURCE: America s Health Insurance Plans, Center for Policy & Research: January 2013 Census 10

11 HDHP Growth by Type Number of Covered Lives in Millions 6 Individual Small Group Large Group SOURCE: America s Health Insurance Plans, Center for Policy & Research: January 2013 Census HSA Opportunities for Your Credit Union HSAs expand your wallet share and increase member retention Non-interest revenue streams HSA leveraged by younger people I just turned 27 Transfer opportunities 11

12 Debit Card Revenue 75% of HSAs in a DDA account had debit card swipes in 2013 Average swipe was $ Accounts averaged 8 swipes in 2013 SOURCE: Year End 2013 Devenir HSA Research Report (2/14) $3 Investment Growth in HSAs $2 $2.3 $2 Dollars in Billions $1.7 $1 $1.1 $0.9 $1 $0.4 $0 $0.1 $0.2 $ SOURCE: Year End 2013 Devenir HSA Research Report (2/14) 12

13 HDHP Youth Movement 21% 18% 10% 13% 27% 12% 0-19 Years Years Years Years Years 60+ Years SOURCE: America s Health Insurance Plans, Center for Policy & Research: January 2013 Census Questions to ask Offering HSAs Can your systems handle it? Tax and government reporting Debit card capability Low cost to enter the game Business and employer relationships 13

14 Questions? Kevin Boyles, CISP, CIP Vice President, Business Development Ascensus Thank you for attending today! 14