MINNEAPOLIS--(BUSINESS WIRE)--Oct. 17, 2005--U.S. Bank, a leader
in providing health savings account (HSA) services to institutions,
has now made it easier for individuals and small businesses to receive
the same tax-free savings benefit if they have a high deductible
health insurance plan.
U.S. Bank began offering the U.S. Bank Health Savings Account
(HSA) for individuals and small businesses on Oct. 3, 2005 through its
branches, 24-hour call center and online at usbank.com. HSAs allow
consumers to direct pre-tax money to the account either directly or
through their employer. Additionally, the benefits are portable, owned
and controlled by the individual regardless of changes in employer or
health plan. The funds in the account also roll over from year to year
as accumulated tax-free savings.
Funds may be withdrawn at any time, before or after retirement, to
pay for qualified medical expenses of that individual and his or her
dependents. After age 65, funds may be withdrawn as supplemental
income and used for other things besides health care, taxed at the
normal tax rate. The U.S. Bank HSA also benefits employers (typically
small businesses) that offer high deductible health plans to their
employees by making high deductible plans more appealing when combined
with an HSA.
One of the highlights of the U.S. Bank HSA is the Coverage
Advisor(TM) provided by Subimo. This tool allows a person to compare
health coverage plans based on usage and the costs of care in a
particular region. Subimo licenses a suite of decision tools which
provide a unique combination of data, content and personalized,
interactive models so consumers can easily select insurance coverage,
fund their tax preferred accounts, determine costs for medical
services, and select hospitals, drugs and physicians.
"HSAs have become a valuable tool for individuals who choose a
low-cost, high deductible plan as their health insurance option, and
want the ability to carry over contributions from year to year if not
used," said Steve SaLoutos, senior vice president of consumer products
and services at U.S. Bank. "The U.S. Bank HSA demonstrates our
commitment to not only understanding our customers' needs but also
giving them a thoughtful, valuable solution to what may otherwise be a
HSAs were created by Congress and became effective Jan. 1, 2004 to
address the issues of cost and affordability of healthcare by offering
individuals the ability to save for current and future health care
expenses, on a tax-advantaged basis. HSAs are expected to encourage a
culture of personal accountability so individuals become better health
care consumers. More than 1.3 million people have opened an HSA since
its inception and industry analysts estimate that there will be more
than 6.3 million accountholders by the end of 2008.
U.S. Bank was one of the early entrants into the institutional HSA
product market. Dan Kelly, manager of HSA Services for U.S. Bank
Institutional Trust & Custody, said, "The retail HSA products nicely
complement what U.S. Bank has successfully offered institutional
clients for nearly a year. U.S. Bank Health Savings Solution combines
competitive HSA product features with the national presence of the
U.S. Bank brand, and is designed to be flexible to support the needs
of our clients and their employees."
Visit usbank.com/hsa for more information about the U.S. Bank
Health Savings Account.
For more information on the institutional HSA offering visit U.S.
Bank Institutional Trust & Custody at healthsavings.usbank.com. U.S.
Bank Institutional Trust & Custody is a division of U.S. Bank N.A.
that focuses on retirement, investment, trust and custody services for
institutional clients. Its product offerings include retirement plans
(401(k), profit sharing or money purchase pension plans, and defined
benefit), institutional trust and custody services, master trust
services and health savings accounts.
U.S. Bancorp (NYSE:USB), with $204 billion in assets, is the 6th
largest financial holding company in the United States. The company
operates 2,383 banking offices and 4,877 ATMs in 24 states, and
provides a comprehensive line of banking, brokerage, insurance,
investment, mortgage, trust and payment services products to
consumers, businesses and institutions. U.S. Bancorp is home of the
Five Star Service Guarantee in which the company pays customers if
certain key banking benefits and services are not met. U.S. Bancorp is
the parent company of U.S. Bank. Visit U.S. Bancorp on the web at
CONTACT: U.S. Bank Media Relations
Teri Charest, 612-303-0732
SOURCE: U.S. Bank