Humana adds Health Savings Account option to its Smart Products

Humana adds Health Savings Account option to its Smart Products

Humana members to access funds with special HumanaAccess Visa® debit card

LOUISVILLE, KY - Jul 29, 2005 - Humana Inc. is expanding its Smart family of consumer-focused products to include a health savings account (HSA) option for all commercial groups. Last November, Humana began making HSAs available to its individual HumanaOne members as well as to select commercial customers.

Beginning this month, HSA members will be able to access their funds by using a special HumanaAccessSM HSA Visa® debit card when paying for qualified medical services at their physician’s office or pharmacy.

“Humana continues to offer innovative health benefits and our HSA plan, coupled with our HumanaAccess HSA card, is a testament to our ongoing emphasis on putting the consumer first,” said Beth Bierbower, vice president of product innovation for Humana. “We developed our HSA product to ensure that it would meet the needs of employers as well as the diverse, individual needs of employees.”

An HSA is a tax-free savings account coupled with a high deductible health plan (HDHP) used to pay for health care expenses. The member and the employer can contribute to the interest-bearing account and any unused funds roll over to the next year. Since an HSA is portable, employees can take it with them when they leave a company.

To remain compliant with Internal Revenue Service regulations that govern HSA accounts, Humana members electing an HSA will have an HSA calculator available to them through Humana’s Enrollment Center to plan expenses and to guide them in preventing excess contributions.

Humana is offering several HDHP options with HSAs. Members with single coverage can choose deductibles ranging from $1,500 up to $5,000. Deductibles for those selecting family coverage range from $3,000 to $10,000. Typically, the lower the deductible, the higher the premium. Coinsurance percentages associated with these plans are 100 percent in-network coverage and 70 percent out-of-network coverage, as well as 90/60 and 80/50 respectively. Plans are available to employers with 2 or more employees.

Several groups of mutual funds will be available for the investment portion of HSA accounts. Humana will provide HSA members with electronic and telephonic access to check HSA account balances, request reimbursements and other related services. These services will be available in high- or low-tech formats depending on the customer’s Internet and technical capabilities. Humana’s HSA plans will be administered by UMB Bank based in Kansas City, Mo.

“Humana’s HSA product is an option for small and large businesses so they can continue offering affordable health benefits that will make accessing health care services convenient for their employees,” Bierbower said.

The HSA option was offered to Humana employees during open enrollment for their 2005-2006 health benefits. Nearly 50 percent of Humana’s more than 13,000 employees chose a high deductible health plan with an HSA.