MINNETONKA, Minn.—Enrollment in its health insurance plans linked to
health savings accounts for the first time surpasses enrollment in
plans linked to health reimbursement arrangements, one of the nation’s
biggest health insurers said Wednesday.

Minnetonka, Minn.-based UnitedHealth Group Inc. said that as of
March 31, 1.38 million people were covered in a health plan offered
through its health insurance units and linked to an HSA, just slightly
more than the 1.34 million in HRA-linked plans.

While HRAs predate HSAs by several years, employers—as the
UnitedHealth figures indicate—are increasingly using the HSA as the
link to a high-deductible health insurance plan. The chief difference
between HSAs and HRAs is that while employers and employees can
contribute to HSAs, only employers can fund HRAs.

Additionally, while employees immediately vest in HSA contributions,
accumulated HRA balances typically are forfeited when employees leave a
company.

Also, HRA-linked coverage only can
be offered through an employer, while high-deductible health insurance
plans linked to HSAs are available in both the group and individual
markets.

UnitedHealth said about 25 million people are covered through the
health plans it offers, making it second only to Indianapolis-based
WellPoint Inc., which has 34 million enrollees in its health care plans.

Topics: Section 105 (HRA's), Health Reimbursement Arrangements (Section 105) |

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