J.P. Morgan has reported that its Health Savings Account business has grown by 60 percent in account volume over the last year.
The firm reports seeing a 97 percent adoption rate among eligible employees in HSA programs sold by J.P. Morgan directly to employers. Officials say much of the success of these new plans is attributed to senior level commitment and employee training and education.
"Employers that have embraced the HSA as a major part of their healthcare strategy are seeing high levels of adoption," said David Josephs, head of J.P. Morgan's Consumer-Directed Healthcare business. "Keys to success are a strong plan design with employer contributions and an aggressive education program."
J.P. Morgan saw early adoption of its program from medium and small businesses that found the HSA as a way to preserve affordable health coverage.
As the HSA is offered along with a high-deductible health plan, employers are generally able to offer their employees lower premiums and put employees in control of how their dollars are spent. The additional tax savings of these plans can also make offering the program much less expensive for the employer than traditional insurance coverage.
"HSAs enable employers and consumers to balance more effectively short- and long-term needs around healthcare expenses," said Josephs. "With the rising cost of healthcare coverage, health insurance plans that include an HSA help individuals plan for current and future expenses while helping employers and individuals manage healthcare costs."
Similarly, many large organizations have adopted J.P. Morgan's HSA program. These organizations come from industries such as manufacturing, retail and financial services, with participation across all salary levels including low- to-moderate income employees as well as managers and executives. According to J.P. Morgan these larger organizations can save up to 30 percent to 40 percent annually using HSAs.