Trustees—Launching an HSA Program? 5 Key areas to consider…
1. How much revenue will I be able to make?
It's still early days in terms of potential market size but Inside Consumer-Directed Care (a bi-weekly newsletter) estimates that, as of Jan. 1, 2006, about 8 million people will be covered by a High Deductible Health Plan (HDHP) that is compatible with an HSA. Enrollment in HSA-based plans continues to increase rapidly.
2. How much will it cost to deliver?
This is a new market opportunity with future volumes and balances difficult to predict. If you are thinking of implementing an in-house system, the cost of modifying your internal systems and procedures could be upwards of $500k.
3. How much will it cost not to deliver?
HSAs represent a new opportunity to add value to services already offered to your corporate clients. Many of them are likely to be looking closely at the possibility of offering HSAs to their employees/participants. If you don't offer HSAs will your clients stay with you or move to a bank that does offer a competitive solution?
4. Are there other benefits to implementing an HSA program?
Your bank will be able to accumulate assets—not an easy task in today's competitive environment.
Over time you will be able to earn spreads on balances and interchange fees.
You will be able to increase your fee income.
5. Do you have the resources to keep up-to-date with corporate governance regulations?
Your HSA solution needs to have the flexibility to meet current and future regulatory requirements and will require comprehensive recordkeeping and account monitoring.
