HSA Ed off Accountholders off Employers on Agents Brokers off

Webster Bank Case Study

HSA Program History


Webster Bank introduced an HSA-compatible health plan in 2005 as an alternative option for their two traditional preferred provider option (PPO) health plans. In 2006, Webster expanded its HSA-compatible health plan choices to offer employees two different deductible level plans amongst its three health plan options. Webster offered the same health plan options in 2007. Webster has actively tied its wellness program to the HSA program since its initial offering by linking employer HSA contributions to wellness participation.

Enrollment in Webster HSA-compatible health plan has grown to 45% of total health plan enrollment in 2007. The keys to growth were plan design, including lower employee premiums, company HSA contributions, and extensive communication that created a compelling case for participation.


HSA Program Design Features


Incentives

  • Promoted and linked health and wellness program by contributing additional HSA funds for completing an initial health assessment survey and the fitness incentive program.
  • Preventive health services (physicals, immunizations and vaccinations, mammography, OB/GYN exams, and colonoscopies) have first dollar coverage.

    • Communication

  • Overcoming misconceptions about HSA-compatible health plans by employees (and as importantly, their spouses) was a major communications challenge.
  • An extensive communication campaign was conducted in the months leading up to open enrollment for 2005, and each year thereafter.
  • Employee meetings & webcast.
  • Home mailings (to reach the spouse) provided examples of how employees can save money and “worst case cost scenarios” in the event of catastrophic medical expenses.
  • Online access to health & wellness information, claims & cost data, benefit plan information, WebMD, fitness incentive program.
  • After the first year, testimonials by employees enrolled in HSA-compatible health plans helped dispel many concerns about these plans.

    • change in healthcare expenses chart
    health plan enrollment experience chart

    Who is Webster Bank?

    Headquarters: Waterbury, CT

    Employees: 3,400

    Initial HDHP/HSA Offering: 2005

    Additional Information: Webster is one of the 50 largest banks in the U.S. and self-insures medical expenses.

     

    Results

    HSA Bank's recommended plan design lowered employee costs and exposure, even for employees that had high medical expenses.

    • The maximum employee cost exposure was reduced 28.6% for single coverage and 37.5% for family coverage when selecting the HSA-compatible health plan over the traditional plan.

    In a 2004-2007 Retrospective Experience Review by Aquarius Capital, Webster Bank had several positive results from offering an HSA-compatible health plan, including:

    • Cost increased about 1% per year compared to a norm of 9%-10% for like benefits.
    • Overall cost per employee decreased an average of 1.1% per year.
    • Net expenses per employee for the HSA-compatible health plan with an employer contribution was nearly 18% less than the traditional plan in 2007.