Health Savings Accounts: A Review of Three Distinct HSA Go-to-Market StrategiesSherry K. Lawton, Senior Healthcare Strategic Sales ExecutiveFIS Government, Education and Healthcare Division

The Crazy Lady in Front of You!

• Sherry K. Lawton– Sr. Healthcare Strategic Sales Executive– FIS Government, Education and Healthcare Division

• Worked with HSAs since their inception in 2004• Consult with financial institutions to understand and implement successful HSA

programs and solutionsprograms and solutions• ABA’s HSA Council• Prior life worked with financial institutions to understand and implement online

banking and bill payment solutions, including social media marketing

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Our HSA Discussion

Why do HSAs sizzle?• Show me the money• Healthcare Bill• Market statistics

Ten best practices1. Do your homework2. Understand the basic HSA product3. Establish realistic goals

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3. Establish realistic goals4. Turnkey marketing and education5. Flexible enrollment options6. Online account management7. Integrated investment options8. Entry into CDH market9. Health and wealth10. Customer empowerment

Next steps

The Sizzle of Health Savings AccountsThe Sizzle of Health Savings Accounts

Why HSAs?

• Single biggest opportunity since the 401k – Introduced in 1978………Over 30 years ago!

• Deposits, Deposits, Deposits• Fee income and interchange revenue• New commercial and small business customers• Expand/strengthen current customer relationships• Expand/strengthen current customer relationships• Cross selling opportunities – Average of four services per HSA account holder

• New Healthcare financial planners / advisers• Healthcare “Reconciliation” Bill

Healthcare “Reconciliation” Bill Impacts

• You in the audience– As an employer– As an employee– As a financial institution

• Your customers– Large commercial clients– Large commercial clients– Mid to small clients– Individuals

• Consumer driven health care• Health Savings Account market

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HSA Market Estimates for 2012

$325 Billion in Assets

30,000,000 Accounts

Source: Bearing Point, February 29, 2008

CDHP / HSA Adoption

Sources: Leading Research Firm, US Census Bureau, Kaiser Family Foundation, Aetna, eHealthInsurance, Employers Council on Flexible Compensation, Mercer, CFO.com, Benefitnews.com, 100 Best MerchantAccounts.com, Federal Reserve, ISI, Forrester, US government reports/agencies BearingPoint SME, others

NOTE: CDH includes: HSA, HRA, FSACDHP includes: HSA, HRA

10 Best Practices for HSA Program Success It’s All About the Customer

10 Best Practices for HSA Program Success

1. Do Your Homework

Who is your target market? • Commercial clients• Retail / Branch /

Online customers• Trust / Wealth managers,

Investment brokers and agents

What division will own the HSA product?• Treasury• Wealth Management• Commercial • @ Work/Small

BusinessInvestment brokers and agents• Health plans, TPAs, Insurance

and Benefit agents / brokers• Payroll providers, Others

Business• Retail• Trust• Healthcare Division• Insurance Division

2. Understand the Basic HSA Product

• DDA on Steroids– Acts like a checking account• Debit Card• Checks• Recommend No ATM

– Tiered interest rates similar to a Money Market account– Tax reporting like an IRA

• Regulatory reporting– 5498SA and 1099SA

• Separate BIN – Merchant code restrictions– VISA and MasterCard requirements

• HSA Portfolio of Accounts

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3. Establish Realistic Objectives

CRAWL

Establish

WALK

Promote

RUN

Enhance

SPRINT

Surpass

PROGRAM MEASUREMENT

• Establish an HSA program

• Begin promoting your HSA program in the marketplace

• Add advanced HSA capabilities such as integrated investments

• Full suite of consumer driven healthcare solutions (FSA, HRA, dependant care and transit accounts)

4. Turnkey Marketing and Education

• Health Savings Accounts 101– Web sites / Portals– Glossary of terms– Training tools– Brochures

• Empowering employers and brokers• Empowering employers and brokers– PowerPoint presentations– Collateral– Program overviews– Help wizards

• Employee / Consumer Enrollment Decision Support– Flash movies– Tutorials– Calculators – Frequently asked questions

FIS Wealthcare Portal

Bulk/Batch Enrollment

5. Flexible Enrollment Options

• Automated Account Opening (AAC)– Accepts employee data from online application and / or

eligibility file– Manages data scrubbing– CIP / OFAC screening– CIP exception management

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Paper Enrollment

Online Enrollment

Bulk/Batch Enrollment– CIP exception management– Opens DDA and Investment Accounts– Sends file to preferred print vendor for Welcome Kits– Sends file to create and mail Debit card

6. Online Account Management

• Integrated HSA depository and trust account processing• Web- based and brandable• Single online access to all HSA accounts– DDA, MM, COD and Investments

• Account balances• Transaction history• Transaction history• Contribution history• Integrated, self-directed investments• Thresholds and automated sweeps• Bill payment• Consolidated statements• Regulatory reporting

FIS Personal Cash Manager

7. Integrated Investment Options

• Integrated HSA DDA and Investment Solution• Should have:– Consolidated statements (much like a 401k) – Single Participant Login– Self-directed – Sweeps and Thresholds– Sweeps and Thresholds– Asset allocation to support the 401K-like model

8. Entry into CDH Market (Sprint)

9. Health and Wealth

• Wealth– Smart and Informed saving and spending

• Health– Proactively manage their health

• Personal health records– Patient-owned, patient-managed medical records FIS HealthManager

WealthCareMobile

– Patient-owned, patient-managed medical records– Track medical details for family members and dependents– Comprehensive record of conditions, medications, – allergies, diagnostic statistics, etc.– Messaging, reminders and alerts– Links to clinical information– Health risk assessment– Wellness

FIS HealthManager

Integrated CDH Vision

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10. Customer Empowerment is Key

• Education, Education, Education• Easy

HSA Program Success: It’s all about the customer.

• Easy• Management of their healthcare $$• Management of their wellness, health and medical

Review the HSA SizzleReview the HSA Sizzle

Our HSA Discussion

Why do HSAs sizzle?• Show me the money• Healthcare Bill• Market statistics

Ten best practices1. Do your homework2. Understand the basic HSA product3. Establish realistic goals

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3. Establish realistic goals4. Turnkey marketing and education5. Flexible enrollment options6. Online account management7. Integrated investment options8. Entry into CDH market9. Health and wealth10. Customer empowerment

Next steps

Want the Sizzle…Next steps

• Get moving • Review the 10 steps discussed today– Focus on Steps 1, 2 and 3

• Talk to your customers• Evaluate your technology• Contact your Strategic Account Manager• Contact your Strategic Account Manager• Contact me

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Thank You Sherry K. Lawton, Sr. Healthcare Strategic Sales ExecutiveFIS Government, Education and Healthcare Solutions402.730.3317sherry.lawton@fisglobal.com

Thank You