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Golden Rule Customers Exceed $110 Million Saved in Health Savings Accounts

HSA sales reflect growing popularity of lower-cost health insurance

September 29, 2004 - Golden Rule Insurance Company today announced that its customers have exceeded more than $110 million saved in tax-advantaged Health Savings Accounts (HSAs).

Golden Rule also said that monthly sales volumes have nearly tripled since this time last year with the number of HSA applications up 133 percent since January. Golden Rule pioneered the Medical Savings Account, predecessor to the HSA, ten years ago and began offering Health Savings Accounts as soon as the law allowed on January 1, 2004.

Nationally, the U.S. Congress Joint Committee on Taxation estimates that one million HSAs will be sold this year and a top-ranking IRS official recently predicted three times that many. With more than 16.5 million Americans faced with buying their own health insurance, Health Savings Accounts provide a new, lower-cost alternative to traditional co-pay plans while still offering quality coverage.

Health Savings Accounts have two components: a generally lower-cost, high deductible insurance plan to cover larger medical expenses and a tax-favored savings account. Money saved on lower insurance premiums can be put into the savings account and then withdrawn tax-free to pay the insurance deductible as well as medical expenses not covered, such as vision and dental care.

Unspent savings can accumulate year after year for future health care or even retirement expenses. Golden Rule customers also earn 4 percent annual interest on their savings, well above rates currently paid on most savings accounts.

“On average, we find Golden Rule’s customers saving 45-55 percent on annual insurance premiums alone,” Andy Grim, Golden Rule vice president of marketing, said. “Our customers are getting the coverage they need without paying for coverage they don’t.”

Janet and Ted Lippzer understand just how expensive health insurance can be – and how important quality coverage is. Several years ago, Ted experienced significant health problems but today he’s doing fine. The couple, who own an ice cream shop, live in Elizabeth, Pennsylvania, with their teenage daughter.

The Lippzers switched from traditional insurance to an HSA when their premium skyrocketed to over $900 a month. Today, the Lippzers have cut their premium to under $200 a month and they’re building savings for future medical expenses, tax deferred.

“Health insurance shouldn’t require a compromise that you either take care of yourself or you live your life,” Janet Lippzer said. “An HSA makes it affordable so you can take care of yourself.”

In addition to premium savings and four percent annual interest earned on savings, Golden Rule HSA customers benefit from coverage under UnitedHealthcare’s national network. UnitedHealthcare negotiates rates on behalf of its members, resulting in substantially discounted health care costs. Golden Rule HSA customers can pay their portion of the bill with tax-free dollars accumulated in their Health Savings Account.

Russ Griffith, a self-employed engineering consultant in Granville, Ohio, also knows how costly traditional health insurance can be. Prior to establishing an HSA with Golden Rule, Griffith says he and his wife Kathy, who works part-time in retail, were spending $1,111 a month for health insurance.

“To me, our Health Savings Account is true insurance, the kind of insurance I think I’ve always wanted,” Griffith explained. “Every time you go to the doctor’s office, you don’t have to submit a claim and have them pay part of it and you pay part of it. It reduces the paperwork. It makes a whole lot more sense.”

The Griffiths are now spending less than a third of what they were previously on their monthly premium alone. “When you count the insurance premium, as well as our out-of-pocket medical expenses, we’ll be spending less than half of what we spent with our previous medical insurance,” he said.

Golden Rule has led the way in bringing innovative, lower-cost health insurance solutions to individuals and families for nearly 60 years. Golden Rule is a subsidiary of UnitedHealth Group, one of the largest providers of consumer-driven health plans in the country.

For more information on Health Savings Accounts, visit www.goldenrule.com or call 1-800-974-4472.

About Golden Rule

Golden Rule Insurance Company, a leading provider of health insurance for individuals and families for 60 years, is a UnitedHealthcare company. UnitedHealthcare (www.unitedhealthcare.com) provides a comprehensive array of consumer-oriented health benefit plans and services to small and mid-sized employers and individuals nationwide. UnitedHealthcare is an operating business of UnitedHealth Group, a diversified Fortune 50 company that provides a full spectrum of products, resources and services designed to make health care work better. Through its family of businesses, UnitedHealth Group serves approximately 55 million people.