PORTLAND, Maine — Even in Maine, where folks resist change, health savings accounts are emerging as the plan of choice for employers, said Jennifer McCurry, account manager with Insurance Innovations, a wholly-owned subsidiary of the Maine Credit Union League Insurance Trust. This not only allows credit unions to save money by offering HSAs to their employees, it also means more customers for credit unions that offer the accounts.
Thanks to another year of premium price hikes…McCurry's July renewal clients are seeing increases from 22 to 32% over last year…HSAs have emerged as a popular tool to help both credit unions and their employee groups control benefit costs.
"This seems to be the year that everyone is really taking a serious look at HSAs for their employees," McCurry said. "We already know quite a few of our credit unions will be switching over this month, and when January rolls around, we anticipate a big increase in the switch to high deductible plans, especially HSAs."
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However, switching to a high deductible HSA plan isn't an automatic end-all for budget woes, because many Maine credit unions are contributing to the account to help employees absorb the financial burden of deductibles, lost co-pay environments and reduced prescription benefits.
"In Maine, employers have historically offered very rich health care plans," said David Baird, president/CEO. "Employers have to negotiate between two competing interests. You've got the employee who doesn't want to give up the low cost HMO or PPO plan, and on the other side, you have the employer who is trying to control costs yet provide good, competitive benefits for employees."
Interestingly, HSAs are more popular with younger employees, particularly because employer contributions to HSA accounts are mobile–when the employee leaves the credit union, they can take the funds with them or use them for COBRA costs. Baird said the appeal of mobile HSA dollars is similar to an employee choosing a portable 401K plan over traditional pension plans.
As more for-profit companies seek out HSAs, credit unions not only have an opportunity to increase deposits, the entire industry is in a position to reinforce the movement's market position as a champion of the working class.
Credit union HSAs are more attractive than those offered by banks, McCurry said, because they hold true to basic credit unions philosophies: low or no fees, better service, and dedication to the financial well-being of the member.
"It seems like credit unions are really beginning to take full advantage of the opportunities loyal members provide," Baird said.
"Whether it's financial education, savings on employee benefits or personal insurance products, all those things build upon this incredibly supportive foundation that exists between the member, the credit union and their shared community. Oftentimes, in the benefits and advisory worlds, Middle America gets overlooked. Credit unions can fill that gap, and be the champion for that group of people," said Baird.
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