Los Angeles-Long Beach, CA (1888PressRelease)
February 26, 2008 - Companies with small employee groups have been the early adopters of health savings accounts (HSAs). But HSAs are continuing to gain ground with all employee groups, according to a survey by California Broker Magazine. The survey is available online at http://www.calbrokermag.com/Surveys/hsasurvey.htm. All survey respondents cited agents and brokers as their main distribution channel for HSAs.
The magazine surveyed the state’s top consumer directed health plans about the HSA market. In addition to providing a market analysis, companies answered detailed questions about their plans, giving brokers an opportunity to compare HSAs and choose the best products for their clients.
According to a representative from Ben-e-lect, “The two to 50 market has the most aggressive offerings. We expect the 51 to 199 market to develop in 2007. But, if I were a broker, I would focus on the two to 50 market.”
According to Sterling HSA, individuals and small groups have been early adopters because they make changes easily and they are most affected by double-digit increases to their health plan premiums. We have seen steady growth in mid-market accounts and the large and national employers since January of 2005.” According to Sterling HSA, customers who feel that their yearly double-digit healthcare cost increases are unsustainable are rapidly moving to the HSA market. Areas with high PPO penetration move quickly as well.
Those most receptive to HSAs in California are individual plans and small groups, according to Health Net of California. But, nationwide, the most receptive are professionals and self-employed business owners ages 35 to 50.
