A quick scan of recent press releases from health savings account custodians indicates that HSAs are continuing to grow at a vigorous rate.
For example, in March, Kansas City-based UMB Healthcare Services, a division of UMB Financial Corporation, announced that account balances for its HSAs grew 36.1 percent surpassing $400 million dollars following 2011 open enrollment. UMB said that the number of HSAs in their care stood at nearly 220,000 at year-end.
The Cadillac Tax is still a few years away. It does not kick in until 2018, so in the meantime, Ramthun said he expects that self-funded employers will continue to shift their employees to lower-cost CDH plans as a strategy to avoid the tax, among other reasons.
However, said Ramthun, CDH options soon may not continue to be available to smaller employer insured groups and individuals – which could end up being the majority of the health insurance market, depending on how the state insurance exchanges develop. The problem is with two provisions of PPACA intended to provide new “consumer protections” for health insurance.