OVERLAND PARK, Kan., Jan. 25, 2008 (PRIME NEWSWIRE) -- First Horizon Msaver, a leader in the convergence of health care and financial services, announced that the number of Health Savings Accounts (HSAs) it administers grew by 180 percent during 2007. Furthermore, the company thus far in 2008 has opened eight times as many accounts as it opened in January of last year. January is the time of year when most employers renew their health insurance plans.
HSA-qualified health plans are becoming increasing popular with employers of all sizes as well as with individuals because they provide more control over health care expenses by combining a lower-premium, higher-deductible health plan with a Health Savings Account. The HSA is an account that an individual uses to set aside funds on a pre-tax or tax-deductible basis to pay for routine health care such as office visits, prescription drugs or lab tests. Money that isn't spent during the year rolls over to cover future health care expenses.
While the increased popularity of HSA-qualified health plans can account for some of Msaver's growth -- industry experts are estimating the market will expand by 40 to 50 percent a year -- the company attributes its above average growth rate to a number of other factors.
"We attribute this dramatic growth to the fact that we think we have recruited and refined the best operations and sales team in the industry," said E. Craig Keohan, president of First Horizon Msaver. "We have also focused on building a superior product over the last 11 years, one we believe consistently exceeds the expectations of all those in the HSA value chain."
"Going forward Msaver will continue to invest in providing educational tools to our multi-faceted distribution channel and will lend our support to legislative proposals that make low-premium HSA plans attractive to more people, such as expanding the definition of 'preventive' drugs to include medications for chronic conditions."
In addition to Health Savings Accounts, First Horizon Msaver is now supplying the tools that make other forms of account-based, consumer-driven health care plans work. By teaming up with TSYS, one of the world's largest payment-solutions providers, First Horizon Msaver offers a multi-purse health care and benefits payment card program.
Legal and regulatory changes are providing increased opportunities for consumers to utilize tax-free dollars to pay for medical expenses through a variety of tax-advantaged (or pre-taxed) accounts, such as Health Savings Accounts, Health Reimbursement Arrangements, and Flexible Spending Accounts. That functionality and flexibility is offered by the First Horizon Msaver/TSYS Healthcare card.
About First Horizon Msaver
First Horizon Msaver Inc. is a leader in the servicing of Health Savings Accounts (HSAs) and is a member of the First Horizon National Corp. (NYSE:FHN) family of companies that provides financial services to business customers and individuals nationwide. With first-to-market technology like electronic enrollment, banking online, online bill pay, investment options and a dedicated HSA customer care center, First Horizon Msaver is helping thousands of Americans get the most out of their tax-favored HSAs.
First Horizon companies have been recognized as some of the nation's best employers by AARP and Working Mother. First Horizon also was named one of the nation's 100 best corporate citizens by CRO magazine. More information can be found at www.firsthorizonmsaver.com.