LifeWise of Washington offers new tax-saving health insurance option for individuals
EVERETT, WA (December 17, 2003) — Starting Jan. 1, 2004, LifeWise Health Plan of Washington’s Medical Savings Account (MSA) Share health plan, previously available only to qualified self-employed individuals, will become available to all individuals and will be fully compatible with the newly authorized Health Savings Accounts (HSAs).
Under federal legislation signed into law last week week, consumers will be able to open HSAs – tax-exempt savings accounts that can be used to cover medical expenses. Previously, federal law allowed only small groups and self-employed individuals to take advantage of what were called Medical Savings Accounts, which were created on a pilot basis during the 1990s. The new HSAs have a variety of improvements over their older MSA counterparts, including higher contribution limits and greater availability. Consumers who currently have MSAs will be able to easily convert their existing accounts at no cost into new HSAs.
LifeWise’s existing MSA Share plans are HSA-qualified and offer $1,700 and $2,500 deductible plans for individuals as well as $3,400 and $5,000 deductible plans for families.
HSAs work hand-in-hand with the high-deductible and less expensive health plans. By taking advantage of new tax laws, individuals can use the new coverage to reduce their total health-care outlays compared with conventional coverage.
For instance, by purchasing a $3,400 deductible LifeWise HSA-qualified health plan, a 40-year-old husband, wife and two children with annual medical expenses of $1,000 could save $3,051 annually in out of pocket expenses over a $1,000 deductible Preferred Provider plan. It would also leave them with $2,400 in their interest-bearing HSA account to roll over to the next year for future expenses.
“Basically, this design lets people keep their money in their own pockets for as long as possible,” said Jeff Roe, President and CEO of LifeWise Health Plan of Washington. “What they don’t spend on medical care grows tax-free in their own savings account.
“Consumers are demanding increased options in their health-care. This combination of a high-deductible LifeWise medical plan and an HSA gives them more control over their health care dollars, putting them in the driver’s seat,” said Roe. “We have been a leader in providing this option to members and now, more people than ever before will enjoy significant tax benefits and peace of mind.”
In order to streamline the process for members, LifeWise partners with MSA Bank, an FDIC insured financial institution. MSA Bank maintains existing MSAs and will offer new the HSAs, which become available Jan. 1, 2004. The bank will assist members who want to roll over their existing MSAs into the new HSA savings accounts.
LifeWise Health Plan of Washington is a member of a family of companies headquartered in Washington state, with operations in Mountlake Terrace and Spokane; Portland and Bend, Oregon; Anchorage, Alaska; and Scottsdale, Arizona. LifeWise and its affiliates employ about 3,000 people and provide health-care coverage and related services to 1.5 million subscribers and their families.
CONTACT:
Scott Forslund
Communications Director
(425) 918-5070 office
(425) 280-1653 cell
Chris Jarvis
Communications Manager
(425) 918-3368 office
(206) 714-4010 cell