Humana, JPMorgan Chase Bank Agreement Offers One-Step, One-Application Easy
Enrollment for Members
LOUISVILLE, Ky., Nov. 22 /PRNewswire/ -- To meet the ongoing need for
affordable individual health care coverage, Humana Inc. (NYSE: HUM) has
launched HumanaOne(TM) HSA, a high-deductible health insurance plan (HDHP),
coupled with a tax-deductible health savings account (HSA) that allows
participants to set aside money that can be used tax free to pay for qualified
medical expenses. The HumanaOne HSA can save consumers money over traditional
low-deductible health insurance options, while offering consumers a way to
efficiently save for out-of-pocket health care expenses.
According to a recent Kaiser Family Foundation Health Poll Report,
71 percent of adults believe the most important reason to have insurance is to
protect against high medical bills rather than pay for everyday health care
expenses. Many consumers also understand that low-deductible health plans,
which can be more expensive, often provide more coverage than they need, while
plans with higher deductibles can help consumers lower monthly premiums in
return for paying more out-of-pocket if medical care is needed. The HumanaOne
HSA fills a need for uninsured individuals and families seeking affordable
coverage.
"Humana believes that engaging consumers in both the selection and use of
their health plan is the best -- and perhaps the only -- way to address the
challenge of rising health care cost," said Tod Zacharias, vice president of
Humana's small group and individual products segment. "Humana is committed to
providing people with the knowledge, tools and guidance they need to be
successful, savvy health care consumers. We're offering people the
opportunity to make wise decisions and ultimately use their health care
dollars to their best advantage."
Designed for effortless enrollment
While many HSAs appear similar, Humana has gone to great lengths to ease
the administration of and enrollment in the HumanaOne HSA. Humana has
eliminated the typical multi-step application process associated with most
other HSA products and has developed a simple one-step, one-application
process that enables consumers to enroll in both the Humana HDHP as well as an
HSA administered by JPMorgan Chase Bank, N.A., a global leader in the
development of electronic payment solutions. JPMorgan Chase also will provide
customers with transaction services and a HumanaAccess(SM) VISA(R) debit card
so they can access contributed funds. The HumanaAccess VISA debit card can be
used at any participating doctor's office, hospital, pharmacy or urgent care
facility.
"While it's important to educate consumers, we believe that's only the
first step in making the health insurance process more affordable and
accessible," said Zacharias. "We know how complex health insurance and health
savings accounts can seem, particularly if you're self-employed and don't have
a broker or human resources department to assist you. That's why we've worked
so hard to make this as effortless as possible for consumers."
Humana also understands that some consumers want additional flexibility in
how their funds are invested and where their HSA is administered. For this
reason, Humana also gives consumers the option to pair Humana's individual
HDHP with an HSA administered by other banks or financial institutions.
Humana believes its HumanaOne HSA, which incorporates many of the concepts
and features found in its "Smart" insurance products for large and small
businesses, will appeal to a range of people who don't have health care
coverage -- often either because they are self-employed or opt for early
retirement -- and have been historically challenged when it comes to
purchasing affordable health insurance. Humana expects participants to include
those looking to control health care costs, who want to use pre-tax money to
pay for health care, or who are looking for additional tax-saving options.
The company expects HSAs to be initially most popular in the individual
coverage market. For that reason, Humana chose to offer an individual HSA
first, but plans to introduce an HSA for employer groups in 2005.
About HumanaOne HSA
The HumanaOne HSA is a high-deductible health insurance plan (HDHP),
coupled with a tax-deductible health savings account that enables participants
to pay for medical expenses and accumulate savings to cover future health care
needs. Since there is no "use it or lose it" rule, unused funds can be rolled
over from year to year, enabling consumers to build a tax-free nest egg for
their health care needs. Contributions to the HSA are tax-deductible, earnings
are tax-deferred and qualified distributions are tax-free.
To qualify for the HumanaOne HSA, consumers must be under the age of 65,
not be claimed as a dependent on anyone else's tax return and not be enrolled
for Medicare benefits. HSA participants are required to purchase an HDHP with
annual deductibles of at least $1,000 for an individual and $2,000 for a
family. Consumers can dip into their HSA at any age -- tax free -- to pay for
medical expenses, which include deductibles and co-payments, as well as many
charges that typically aren't covered by health insurance, such as over-the-
counter drugs, vision and dental care, and long-term care insurance premiums.
About JPMorgan Chase & Co.
JPMorgan Treasury Services is a unit of JPMorgan Chase Bank, N.A., a
subsidiary of JPMorgan Chase & Co. JPMorgan Chase & Co. (NYSE: JPM) is a
leading global financial services firm with assets of $1.1 trillion and
operations in more than 50 countries. The firm is a leader in investment
banking, financial services for consumers and businesses, financial
transaction processing, asset and wealth management, and private equity. A
component of the Dow Jones Industrial Average, JPMorgan Chase & Co. has its
corporate headquarters in New York and its U.S. retail financial services and
commercial banking headquarters in Chicago. Under the JPMorgan, Chase and Bank
One brands, the firm serves millions of consumers in the United States and
many of the world's most prominent corporate, institutional and government
clients. Information about the firm is available on the Internet
at http://www.jpmorganchase.com .
About Humana
Humana Inc., headquartered in Louisville, Kentucky, is one of the nation's
largest publicly traded health benefits companies, with approximately
7 million medical members located primarily in 15 states and Puerto Rico.
Humana offers a diversified portfolio of health insurance products and related
services -- through traditional and consumer-choice plans -- to employer
groups, government-sponsored plans, and individuals.
Over its 43-year history, Humana has consistently seized opportunities to
meet changing customer needs. Today, the company is a leader in consumer
engagement, providing guidance that leads to lower costs and a better health
plan experience throughout its diversified customer portfolio.
More information regarding Humana is available to investors via the
Investor Relations page of the company's web site at http://www.humana.com ,
including copies of:
-- Annual report to stockholders;
-- Securities and Exchange Commission filings;
-- Most recent investor conference presentation;
-- Quarterly earnings press releases (including detailed description of
unusual items, where applicable);
-- Audio archive of most recent earnings release conference call;
-- Calendar of events (includes upcoming earnings conference call dates,
times, and access number, as well as planned interaction with
institutional investors);
-- Corporate Governance Information.
SOURCE Humana Inc.
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Related links:
http://www.humana.com
http://www.jpmorganchase.com
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NewsCom:
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AP Archive: http://photoarchive.ap.org
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Company News On-Call:
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CONTACT:
Mark Mathis of Humana Corporate
Communications, +1-920-337-5354, or mmathis@humana.com ; or John
Johmann of JPMorgan Chase & Co., +1-212-552-9377,
john.johmann@chase.com
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