RIDGEFIELD PARK, N.J. and BUFFALO, N.Y., July 19 /PRNewswire-FirstCall/ -- Mellon Financial Corporation today announced that its Human Resources & Investor Solutions (HR&IS) business has entered into an alliance with North American Health Plans, Inc., a leader in the self-insured administration and consumer driven healthcare industry, to offer a fully integrated Health Savings Account (HSA) product. The new product combines administration of both the health coverage and financial components of an HSA program.
The new Mellon-North American Health Plans product combines the financial and human resources strength of Mellon with North American Health Plans’ 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 establishing this important alliance with North American Health Plans,” 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.”
“As a leader in providing administrative services in the area of consumer- driven health products, we are pleased to partner on such an innovative product as the HSA with Mellon, a worldwide leader of financial services,” said Ron Zoeller, NAHP’s CEO. “The HSA will be a catalyst in the continued development and success of consumer-driven health initiatives.”
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.
About North American Health Plans, Inc.
North American Health Plans (NAHP), founded in 1983, began as a third party administrator specializing in the administration of self-funded healthcare plans. North American Health Plans has grown to become one of the largest TPAs in the country. In addition to traditional TPA services, NAHP offers claims administration services to HMOs/MCOs and CDHPs.
NAHP also offers managed care services such as Utilization Management (UM) and Preferred Provider Organization (PPO) programs. NAHP employs over 400 people, with regional offices in Boston, Massachusetts; Houston, Texas; Atlanta, Georgia; St. Louis, Missouri; Indianapolis, Indiana; New Orleans, Louisiana; Tampa, Florida; Memphis, Tennessee; as well as the company headquarters in Buffalo, New York.
About Mellon
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
CONTACT: Ed Gadowski of Mellon Financial, +1-201-994-2126, orgadowski.e@mellon.com; or Art Wingerter of North American Health Plans, Inc.,+1-716-319-5108, or awingerter@nahp.com
Web site: http://www.mellon.com/
