RIDGEFIELD PARK, N.J. and ALEXANDRIA, Va., May 6 /PRNewswire-FirstCall/ -- Mellon Financial Corporation today announced that its Human Resources & Investor Solutions (HR&IS) business has entered into an alliance with Lumenos, a pioneer in the growing consumer-driven health care industry, to offer the nation's first fully integrated Health Savings Account (HSA) product. The new product is the first to combine administration of both the health coverage and financial components of an HSA program.
The new Mellon-Lumenos product combines the financial and human resources strength of Mellon with Lumenos' expertise in consumer-driven health care, creating a single program that results in a seamless experience for employees and employers. The integrated HSA product includes financial services such as checking and debit cards to pay for qualified medical expenses out of the HSA, an investment account and IRS-required tax reporting, along with health plan services such as claims administration, customer service, online health tools, employee education and enrollment.
"We're excited to be joining our financial and human resources expertise with the health plan management proficiency of Lumenos," said James D. Aramanda, Mellon vice chairman and head of its HR&IS business. "HSAs represent a powerful new approach for addressing spiraling health care costs, and both employers and employees as consumers have demonstrated a desire for additional information on this product. Employees are most interested in the many tax advantages, especially since contributions to and earnings on HSA balances are not taxed, and the use of account funds is tax-free for qualified medical expenses."
"Lumenos has achieved many 'firsts' in the health care industry, such as linking financial incentives with consumer behaviors that improve health outcomes and offering a service that coaches consumers with certain ongoing health conditions. And now, with this business alliance with Mellon, we're the first to offer a single-source solution for the new generation of HSA plans," said Chip Tooke, Lumenos chief executive officer. "This is a huge step forward for both employers and employees. Employers will get one-stop shopping for the most innovative health benefits approach available, and their employees will get more control of their health care, health improvement support and professional management of their health care savings. Most important, instead of spending most of their health care dollars on premiums, consumers will have the opportunity to save and invest a portion of their health care dollars. When they do have routine expenses, they'll have the convenience of a debit card to pay for them."
HSAs, which were authorized by the Medicare Prescription Drug, Improvement and Modernization Act of 2003, are portable health savings accounts that consumers can use to pay for qualified medical expenses. The accounts are offered in conjunction with a traditional health plan that provides security against catastrophic medical costs. Both employers and employees can contribute to HSAs -- currently up to $5,150 for a family and $2,600 for individuals. For employees, the pre-tax contributions will reduce their income taxes while allowing them to set aside additional money for their health expenses. The money in the accounts can also be invested, allowing employees to increase their health care security. Accounts are portable and flexible, and unused HSA balances can be carried forward from year-to-year, rolled over if the individual changes jobs or even used for post-retirement health expenses.
Lumenos(R), based in Alexandria, Va., is an award-winning, industry leader in the field of consumer-driven health care. The Company's mission is to engage consumers in their health care by giving them control of routine health decisions and dollars and the tools to make wise and informed decisions about their care. For self-funded companies, Lumenos offers a Health Reimbursement Account (HRA) program. A growing number of Fortune 500 companies representing the retail, pharmaceutical, technology and manufacturing industries offer the Lumenos HRA program to employees. And the Company has been awarded the prestigious Make a Difference Best of Show Award, the E-Healthbeat Award for Outstanding Web Site and a TETHIE Award for Most Innovative Use of Technology Promoting Wellness. In addition to the Lumenos-Mellon HSA program, Lumenos also offers HSA products through its wholly-owned subsidiary, MSAver. For more information on MSAver, please visit http://www.msaver.com/ . For more information on Lumenos, please visit http://www.lumenos.com/ .
Human Resources & Investor Solutions is the worldwide human resources and shareholder services business of Mellon Financial Corporation, a global financial services company. Headquartered in Pittsburgh, Mellon is one of the world's leading providers of financial services for institutions, corporations and high net worth individuals, providing institutional asset management, mutual funds, private wealth management, asset servicing, human resources and investor solutions, and treasury services. Mellon has approximately $3.6 trillion in assets under management, administration or custody, including more than $675 billion under management. Its asset management companies include The Dreyfus Corporation and U.K.-based Newton Investment Management Limited. News and other information about Mellon is available at http://www.mellon.com/ .
Mellon Financial Corporation; Lumenos