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A summary of the articles included in the July 2022 edition:
- UMB Healthcare Services Announces Agreement to Acquire HSA Business from Old National Bank
- Millennials and Gen Z Want More Financial Advice From Employers. Boomers? Not so Much
- Soaring Health Care Costs Squeezing Consumer Spending in Other Areas
- Education Empowers Employees to Better Leverage Benefits: A Look at the HSA
- Study Contends That HSAs Have Failed to Deliver. Is This Accusation Accurate?
UMB Healthcare Services Announces Agreement to Acquire HSA Business from Old National Bank
UMB Bank announced the execution of a definitive agreement to acquire the HSA business of Old National Bank. The transaction contemplates the transfer of approximately $500 million in client assets of which approximately $400 million are held in deposit accounts (based on numbers as of March 31, 2022). The assets, which are comprised of approximately 157,000 accounts across more than 3,000 employer groups, will significantly expand UMB’s direct-to-employer accounts.
Millennials and Gen Z Want More Financial Advice From Employers. Boomers? Not so Much
Our behavior is shaped by the times we live in and the life stage we’re in, and this includes our attitudes about personal finances.
A new study by business research firm Logica Research delved into the financial profiles of baby boomers, Gen X, millennials and Gen Z. The study, which surveys over 1,000 Americans, has been ongoing since 2017, with the most recent wave of data collected in April 2022. It found key behavioral differences in the financial patterns of each generation.
Soaring Health Care Costs Squeezing Consumer Spending in Other Areas
Rising health care costs mean less savings, less care and less leisure spending for the majority of Americans. Benefits and the Great Resignation, a new report from Lively, offers insights into the impact of health care costs on other areas of consumers’ financial lives.
Education Empowers Employees to Better Leverage Benefits: A Look at the HSA
Even with the majority of today’s workforce actively saving money to pay for healthcare costs, the underlying pain persists: Employees aren’t saving enough money to cover out-of-pocket costs.
A recent survey reported that 50% of participants are anxious about healthcare costs not covered by their insurance. An alarming 46% stated they would be unable to cover $1,000 in unexpected health expenses. Lastly, 15% of individuals surveyed declared that they would have to cut their spending on essential household items to pay their medical bills. Employees feel generally stuck, anxious, and overwhelmed by benefits choices, which yields inaction.
As employers prepare for the 2023 benefits enrollment period, they have the opportunity to provide their employees with tools to help mitigate financial stress and improve the financial well-being of the modern workforce; particularly when facing precipitous economic inflation and a predicted recession.
Study Contends That HSAs Have Failed to Deliver. Is This Accusation Accurate?
A recent article in Health Affairs criticizes HSAs for failing to live up to their promise. This isn’t the first such article, nor will it be the last.
It’s important to examine such articles critically. Too often, critiques of any effort – a program to help patients manage medical costs, a plan for low-cost housing, an agenda to reduce the use of fossil fuel – are inaccurate or grossly distorted. Sometimes, they move readers away from a more balanced analysis by confusing causes and effects, or applying general observations or actions to specific programs as though the programs themselves are deficient.
Let’s examine the criticisms of Health Savings Accounts contained in this article and provide some perspective.