The establishment of health savings accounts (HSAs) as part of the Medicare Prescription Drug Improvement and Modernization Act of 2003 has presented opportunities for credit unions to build deposits, increase membership and cross-sell additional products and services. HSA programs are still in their infancy in the CU sector. One of this industry's earliest and most successful HSA pioneers is $4.2 billion Patelco Credit Union, San Francisco, which serves 260,000 members. Patelco CU implemented its HSA program two and a half years ago, and already has more than $25 million in close to 18,000 accounts. Patelco CU's target market for HSAs is typically small companies with fewer than 50 employees. These groups typically find high-cost health insurance premiums a burden and contributions to employees' HSAs more economical. Many times, Patelco CU business development people will go out with the broker on employee group calls.
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