Wednesday, January 3, 2007

Low Corporate Contributions to Health Savings Accounts Threaten Consumer-Driven Health Model, Vimo Report Warns

MOUNTAIN VIEW, Calif. – January 3, 2007 – Vimo.com, the Internet’s leading comparison-shopping site for healthcare, released a research report today that assesses the health of the nation’s Health Savings Accounts (HSAs). The report reveals a significant gap between the number of people enrolled in high deductible health plans and the number of people that hold a Health Savings Account. The report also shows that funds on deposit in the average HSA are roughly half of what is required to cover the typical health plan deductible for these consumers. Both findings hint at disturbing trends that may jeopardize the “Consumer-Driven Health” movement.

This newest report from the Vimo Research Group is free, and available for immediate download at www.vimo.com/reports/hsafunding.pdf.

“HSA market penetration and funding levels are considered by many to be key indicators of the progress of the consumer directed health care movement,” says Tom Cochrane, CFA and Vimo’s Vice President of Partner Relations. “Unfortunately, the Vimo report shows that fewer than one out of every three consumers eligible to open an HSA has done so – a shocking statistic because the accounts are such clear winners for consumers and financial planning experts agree that those eligible to open HSAs should do so immediately. HSAs are triple tax-advantaged, and funds in HSAs can even be used to save for retirement.”

The Vimo Report also states that while normal spending on medical expenses can explain away some of the low HSA balances observed, the low average balance nationwide would seem to point towards a general trend of low (or no) HSA contributions from employers – behavior which could stunt the nascent CDH movement. “The Consumer Driven Health Care movement represents a golden opportunity for consumers to assert substantially increased levels of control over their health care,” Continues Cochrane. “But as employers switch over to high-deductible health plans and the health savings accounts that accompany them, consumers should be especially aware of any resulting changes to their total compensation. If a company makes the switch, but doesn’t fund or under funds an employee’s HSA, this can represent a windfall for the company – but also a dramatic reduction in total compensation for the employee.” Vimo’s research team gathered data from published materials, phone interviews and the Internet. While the Vimo Web site presents a broad range of comparative information on HSA companies and products, this new report focuses on enrollment in and funding of the accounts themselves.

Vimo collates and publishes a free, comprehensive list of HSA offerings and custodians from across the United States at http://www.vimo.com/hsa. HSA custodians wishing to post new or updated product information for consumers can do so by filling out a simple form and sending it back to Vimo. HSA custodians can access the form at http://www.vimo.com/hsa/HSATemplate.xls.

About Vimo

Founded by industry veterans from WebMD and Valicert, Vimo believes consumers deserve more power in the healthcare equation. Vimo makes buying healthcare and insurance easier, cheaper and much more transparent. Vimo is the only Internet destination where users can gain objective, authoritative, and comprehensive shopping-comparison data about insurance, Health Savings Accounts (HSAs), medical procedures, doctors and dentists. Insurance brokers interested in partnering with Vimo can visit http://www.vimo.com/brokercenter. For other partnership opportunities, e-mail partners@vimo.com, call Vimo at 650-230-0065 or visit http://www.vimo.com.

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