Federal Employees In Pennsylvania To Have Consumer Choice Options From HealthAmerica
HARRISBURG, Pa., Nov. 30 /PRNewswire/ -- HealthAmerica announced today that the Office of Personnel Management (OPM) has agreed to make the insurer's new High Deductible Health Plan options available to federal employees living in Pennsylvania in 2005. These new offerings combine a personal health account with first-dollar coverage for preventive care, and protection from large medical bills through a qualified high deductible health plan.
The key to both plans is their personal health accounts. Federal employees may withdraw money from their accounts, tax-deferred, to pay for any qualifying health care expenses. They only purchase health care services when they need them and they save their money when they don't. At the end of the year, all unspent contributions roll over for the member's use the next year or at any point in the future.
HealthAmerica is offering federal employees a choice of two different personal health accounts: a health savings account (HSA) and a health reimbursement arrangement (HRA). An HSA is a tax-favored account into which both employees and employers can make contributions. Employees also have the option to maintain their HSA balances in one of six available investment plans. There are no minimum balance requirements. And if members leave their jobs, their HSAs follow them to their next employer.
An HRA is an employer-funded account. OPM has established that unused HRA credits carryover, without limit, from year to year. If a federal employee retires and remains in the health plan, he or she may continue to use and accumulate credits in the HRA. If they end their employment or change health plans, only eligible expenses incurred while covered under that health plan will be eligible for reimbursement, subject to timely filing requirements. Unused credits are forfeited.
"Empowering consumers to make their own medical financing choices is an effective way to help mitigate the rising cost of health care," said Francis S. Soistman, Jr., president and CEO of HealthAmerica and HealthAssurance. "With their personal health account funds, members can set their priorities, budget their money and spend as little or as much as they want. Along with the coverage for preventive care and the qualified high deductible health plan in case of a serious illness, members enjoy unprecedented control over their health care dollars combined with the peace of mind of a traditional health plan."
To help federal employees make informed choices for their care, HealthAmerica offers a variety of information resources to help them compare health care costs and quality, plus access to information on numerous health conditions and chronic diseases. These resources will include an employee budgeting and facility comparison tool, a nurse advisor line, and access to a wide range of health care information.
"We wouldn't offer this plan without providing members the information they need to make informed decisions," said Soistman. "With these user friendly tools, members can take responsibility for their own care and how they want to spend their health care dollars."
According to Soistman, these plans, commonly called "consumer choice" plans, give members more responsibility for their health care and their health care expenses. In return, members and employers will likely get lower premiums and, through astute management of expenses, a member's account can potentially grow over time.
The HSAs combined with the HealthAmerica FEHBP high deductible health plan are offered and managed by Wells Fargo Bank, N.A., a diversified financial services company headquartered in San Francisco, Calif., and serving more than 23 million customers. FEHBP members establishing an HSA with Wells Fargo can pick from the several investment options offered by the fiduciary.
About HealthAmerica and HealthAssurance
HealthAmerica Pennsylvania, Inc., has a 29-year record in managed care. HealthAmerica, HealthAssurance Pennsylvania, Inc., and affiliate companies cover over 735,000 members in Pennsylvania and Ohio through HMO, POS, PPO, Medicaid, and Medicare Advantage plans. In addition, HealthAmerica earned an "Excellent" Accreditation for its HMO plan and HealthAssurance earned an "Excellent" Accreditation for the HealthAssurance POS by the National Committee for Quality Assurance, an independent, non-profit organization dedicated to measuring the quality of America's health care. With corporate offices in Pittsburgh and Harrisburg, Pennsylvania, HealthAmerica and HealthAssurance provide managed health care products and services to over 11,000 employers in Pennsylvania and Ohio. HealthAmerica and its affiliates employ over 1,500 people in Pennsylvania. For more information, visit HealthAmerica's website at http://www.healthamerica.cvty.com/ .
HealthAmerica and HealthAssuranceCONTACT: Kendall Marcocci, Director of Communications of HealthAmericaand HealthAssurance, +1-717-540-6746, or kmarcocci@cvty.com
Web site: http://www.healthamerica.cvty.com/