SeeChange Health Insurance to offer value-based HSA products to California employers

SeeChange Health Insurance Company, a provider of value-based health insurance plans to employers, will offer a variety of Health Savings Account (HSA) products in parts of California beginning August 1, 2010. The product launch will make SeeChange Health the first insurance company to offer value-based HSA products to California employers.

“We reward individuals for seeing their doctor because we recognize proactive health management and early detection of chronic conditions will save employers money”

The SeeChange HSA products will be available first in the Monterey and Fresno areas, before expanding to the Los Angeles area later this year. As with the overall SeeChange Health plan, the value-based HSA products are designed to reward patients for taking an active role in managing their health.

"We reward individuals for seeing their doctor because we recognize proactive health management and early detection of chronic conditions will save employers money," said Martin Watson, CEO of SeeChange Health. "Health Savings Accounts enable employees to have more control and flexibility on how they spend their health care dollars. With our new HSA products, we provide individuals with financial incentives to encourage them to foster a relationship with their physician and continually engage in their health management."

With SeeChange Health's HSA accounts, employees may continue to contribute pre-tax dollars into their existing Health Savings Account. There are no "use it or lose it" annual requirements. Contribution limits for HSAs currently are $3,050 for individuals, $6,150 for families and $7,150 for people who are 55 or older and signing up for a family plan. Money contributed to the account is tax deductible, earnings on the invested funds are tax deferred, and withdrawals are tax-free if they are used to pay for qualified medical expenses.

"This is a highly anticipated product line," said Chuck Trogdon, CEO of health insurance brokerage firm Renberg, Trogdon, & Cavale Insurance Services. "Since the passage of health care reform, employers are asking for innovative solutions to lower health care premium costs. The SeeChange Health value-based HSA products offer low cost premiums and incentives to employees who visit their doctor annually for preventive care. We are delighted to work with an innovative insurance company that recognizes the importance of annual wellness examinations and rewards individuals for going to the doctor."

Health Savings Accounts (HSA's) are tax-preferred savings accounts managed and owned by individual employees enrolled in HSA-eligible health plans. Like individual retirement accounts (IRA), contributions are not subject to federal income tax at the time of deposit. Both employers and employees may contribute to the employees' HSA account providing the flexibility to use their HSA funds for current or future medical expenses. Employees may choose to spend their HSA money on medical deductibles and expenses incurred before the annual deductible has been met. These out-of-pocket medical expenses include services such as dental, vision, over-the-counter drugs, and long-term care.

California leads the country in HSA enrollments. For example, more than 50 percent of small businesses in Fresno offer HSA products to their employees. Business owners determine the company's contribution amount to the employees' HSAs and the company is able to choose the frequency from which they make such contributions.

Last spring, SeeChange Health successfully launched its value-based insurance plans in California, beginning with the Fresno area. The company recently expanded its offerings into other Monterey, Santa Clara and San Benito counties. Over the upcoming months, SeeChange Health plans to have healthcare insurance plans available in Los Angeles, San Diego, Bakersfield, Sacramento and other parts of the San Francisco Bay Area.

Unlike typical health insurance companies, SeeChange Health has designed its value-based benefit plans to encourage individuals to see their doctor and be active participants in managing their health. SeeChange Health's proactive approach to health management identifies chronic health problems before they become serious - and expensive. Individuals who complete personalized health actions consisting of an annual visit to their doctor, a simple health questionnaire and a biometric screening consisting of basic lab tests receive richer health care benefits at no additional cost. SeeChange members who select the HSA product and complete their personalized Health Actions receive 100 percent coverage for their eligible medical expenses after the annual deductible is satisfied.