LAKE GENEVA, Wis. — Southern Lakes Credit Union says it stepped into the future of health care when it began offering Health Savings Accounts last year.
HSAs are tax-free portable savings accounts that can be used to pay for medical expenses including prescription and over-the-counter drugs incurred by individuals, spouses or dependents. These accounts are accompanied by high-deductible comprehensive insurance policies that cover preventive care and larger medical bills. Unused HSA money rolls over from year to year and can then be used to pay for medical care up to the plan's deductible.
SLCU President/CEO Georgine Levine had been following HSAs since the bill was signed in 2003 and thought that it was something the credit union needed to step forward providing to members.
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"As our members look into High Deductible Health Plans to save on their health care costs, offering HSAs at Southern Lakes helps them to keep all their assets under one roof," said Levine.
Heading the over $57 million credit union's HSA effort is SLCU Business Development Coordinator Brian Bozek who says the response has been overwhelmingly positive.
"It been great. The first four months were very slow which we expected since it is a new product and not too many people knew much about HSAs," said Bozek. "So we initially focused more on education and delivering the information to area
businesses and since January of this year individuals and businesses have been opening accounts."
Bozek says they haven't really advertised the product beyond cold calling and meeting with local business owners and companies explaining the health care premium cost savings HSAs can provide. Tapping HSA Clearing Corporation for help administering the product, the credit union's HSA benefits range from a 5% interest rate and no minimum balance requirements, to providing free checks and a debit card for convenience and no fees. Looking ahead Bozek has teamed with Loan Servicing Specialist Cyndi Sather to develop a postcard mailer touting the CU's HSA program to be sent out later this year.
According to HSAs Clearing Corp surveys, consumers prefer settling up their HSA using local credit unions or banks rather than using a provider the insurance company chooses for them.
SLCU's HSAs now number 70 with some $120,000 in deposits. Bozek says the credit union has five business HSA relationships and two more are joining later this month.
"Every pay period those employees are direct depositing funds into the credit union," says Bozek. "Just like anything you build from the ground up it takes time but as residents and businesses here become more healthcare savvy it starts to pick up speed and get even better. Right now a lot of businesses have been contacting us sending out feelers trying to find out if the rate is just an introductory one when I tell them that's the rate they are amazed."
He expects that during open enrollment later in the year, SLCU's HSAs may triple.
"My advice to other credit unions is if you want to build your portfolio or deposit base and develop more relationships with business owners then HSAs are definitely the way to go," said Bozek. "It is a win-win for everyone and getting started is rather straightforward and not very time consuming. It is not only a wonderful product but really a great way to deepen relationships within the community."
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