HSA Press Release -PR Web
Bankers Predict Blockbuster Year for Health Savings Accounts in 2006
Initial results from Information Strategies Inc.’s 2005 year-end survey shows a significant jump in HSA accounts with more than 1.1 million reported from the 100+ banks surveyed. Total funds under management at the end of 2005 were projected by ISI at $1.2 billion.
(PRWEB) January 30, 2006 -- With 2005 ending on a high note in terms of new accounts in December, many bankers who currently offer HSAs expect 2006 to be a blockbuster. Initial results from Information Strategies Inc.’s (ISI) 2005 year-end survey shows a significant jump in HSA accounts with more than 1.1 million reported from the 100+ banks surveyed. Total funds under management at the end of 2005 were projected by ISI at $1.2 billion. HSAs are made up of two parts -- a high deductible healthcare insurance policy coupled with a tax-deferred custodial account. What’s more, except for one bank, all expected enrollments to double or triple in 2006. The one reluctant bank said it was in the field only for a short time and had no track record to draw upon in predicting 2006 Predictions. JoAnn Laing, President of ISI, said the company’s forward projections put the number of HSA insured at the end of 2006 at 8.7 million with custodial accounts totaling 3.6 million and assets under management tripling to $5.1 billion.At the same time, two emerging trends in fees and costs were also surfaced in the study. In the first, average set-up fees slipped below $25 per account from a year-ago figure of $48.The second trend was that average balances reported by banks soared to more than $1,500 above the estimated $1,100 projected just last November. The ratio of family versus individual accounts rose to 3-1 by banker estimates. The number of individuals covered under these accounts were put more than 2.4 million while it is estimated that another 10% of covered HSA insured individuals had not opened an account.Small Business, Individuals Driving HSAs. The number of community banks and credit unions reporting results tripled from December 2004. Further, all banks indicated strong demand from individual account holders were driving the program. Many banks indicated they hope to drive sales by obtaining one or two large corporations as clients and adding large numbers in a single event. At the same time, they were getting accounts from smaller companies and from individuals choosing them over the custodian being suggested by insurers.
About Information Strategies, Inc. Information Strategies, Inc. (ISI) is a Media and Marketing Company serving small and medium businesses as an information center and large corporations as an advisor and utilized one or more of the firm’s marketing channels to purchase or evaluate product in 2005. Editorially, the company has been ahead of the curve on such issues as “voice over internet,” health savings accounts, and marketing and branding issues that affect small firms. Because it regularly surveys its audience, ISI was able to identify Health Savings Accounts as an important initiative. ISI’s surveys and editorial content have appeared in The Wall Street Journal and The New York Times and are noted for their prescient identification of issues.
Initial results from Information Strategies Inc.’s 2005 year-end survey shows a significant jump in HSA accounts with more than 1.1 million reported from the 100+ banks surveyed. Total funds under management at the end of 2005 were projected by ISI at $1.2 billion.
(PRWEB) January 30, 2006 -- With 2005 ending on a high note in terms of new accounts in December, many bankers who currently offer HSAs expect 2006 to be a blockbuster. Initial results from Information Strategies Inc.’s (ISI) 2005 year-end survey shows a significant jump in HSA accounts with more than 1.1 million reported from the 100+ banks surveyed. Total funds under management at the end of 2005 were projected by ISI at $1.2 billion. HSAs are made up of two parts -- a high deductible healthcare insurance policy coupled with a tax-deferred custodial account. What’s more, except for one bank, all expected enrollments to double or triple in 2006. The one reluctant bank said it was in the field only for a short time and had no track record to draw upon in predicting 2006 Predictions. JoAnn Laing, President of ISI, said the company’s forward projections put the number of HSA insured at the end of 2006 at 8.7 million with custodial accounts totaling 3.6 million and assets under management tripling to $5.1 billion.At the same time, two emerging trends in fees and costs were also surfaced in the study. In the first, average set-up fees slipped below $25 per account from a year-ago figure of $48.The second trend was that average balances reported by banks soared to more than $1,500 above the estimated $1,100 projected just last November. The ratio of family versus individual accounts rose to 3-1 by banker estimates. The number of individuals covered under these accounts were put more than 2.4 million while it is estimated that another 10% of covered HSA insured individuals had not opened an account.Small Business, Individuals Driving HSAs. The number of community banks and credit unions reporting results tripled from December 2004. Further, all banks indicated strong demand from individual account holders were driving the program. Many banks indicated they hope to drive sales by obtaining one or two large corporations as clients and adding large numbers in a single event. At the same time, they were getting accounts from smaller companies and from individuals choosing them over the custodian being suggested by insurers.
About Information Strategies, Inc. Information Strategies, Inc. (ISI) is a Media and Marketing Company serving small and medium businesses as an information center and large corporations as an advisor and utilized one or more of the firm’s marketing channels to purchase or evaluate product in 2005. Editorially, the company has been ahead of the curve on such issues as “voice over internet,” health savings accounts, and marketing and branding issues that affect small firms. Because it regularly surveys its audience, ISI was able to identify Health Savings Accounts as an important initiative. ISI’s surveys and editorial content have appeared in The Wall Street Journal and The New York Times and are noted for their prescient identification of issues.
posted by Kirby P at 6:59 PM
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