RIDGEFIELD PARK, N.J., Dec. 9 /PRNewswire-FirstCall/ -- Mellon Financial Corporation today announced that its Human Resources & Investor Solutions (HR&IS) business has entered into an agreement with WellChoice, Inc., to provide administrative and investment services in support of WellChoice's new high deductible health plans. WellChoice, Inc. is the parent company of Empire Blue Cross Blue Shield, which is offering its new high deductible products effective January 1, 2005, to employer groups with 51 or more employees.
Employers in the northeast overwhelmingly view the rising cost of healthcare as the most pressing benefits issue they face. In fact, Mellon's recent "National Health Care Trends Survey" found that health care costs will continue to increase at a double-digit pace through 2005, so the need for innovative solutions continues to grow.
By creating this alliance with WellChoice, Mellon will be working with New York State's largest health insurer (based on HMO and PPO membership) to assist Empire's members invest the funds they set aside for health care, reduce taxes, accumulate portable accounts that roll over from year to year, pay for health care services with debit cards and checks, and manage their accounts online. WellChoice is a leading health insurance provider in the New York metropolitan area, covering more than 21% of the population there, with nearly five million enrolled nationwide.
"HSAs represent a powerful new approach for addressing spiraling health care costs," said James D. Aramanda, Mellon vice chairman and head of its HR&IS business. "Creating alliances with leaders such as WellChoice fits our strategy of becoming the premier provider of HSA services."
Mellon manages the entire HSA for both the employer and the participant. Mellon establishes the account with the employee, provides recordkeeping, and delivers customer service support through call centers and Web access. Mellon's HSA services feature a selection of mutual funds available through The Dreyfus Corporation, checkbooks and debit cards to pay for services, employee education and enrollment.
HSAs, which were authorized by the Medicare Prescription Drug, Improvement and Modernization Act of 2003, are portable health savings accounts consumers can use to pay for qualified medical expenses (or other expenses with tax consequences and penalties). The accounts are offered in conjunction with a high deductible health plan that provides security against catastrophic medical costs. Both employers and employees can contribute to HSAs -- up to $5,250 for a family and $2,650 for individuals in 2005. 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. 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.
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 more than $3.7 trillion in assets under management, administration or custody, including $670 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 CorporationCONTACT: Ed Gadowski of Mellon Financial Corporation, +1-201-373-7336, orgadowski.e@mellon.com
Web site: http://www.mellon.com/