Wells Fargo Health Savings Accounts Achieve Record Results; Businesses, Employees Capitalize on Benefits
As health care costs soar, businesses respond with HSA-compatible health plans
SAN FRANCISCO--(BUSINESS WIRE)-- American workers saved more than $100 million in taxes in 2012 through their Wells Fargo & Company (NYSE: WFC) Health Savings Accounts (HSA). By helping their customers, the bank achieved record results for its Health Savings Accounts business in 2012, as U.S. companies continued to recognize opportunities to reduce health care premiums and taxes. Wells Fargos HSA program assets grew by 31 percent, reaching more than $809 million by the end of 2012, while accounts grew to a record 365,000 at 2012 year-end.
Wells Fargo helps business clients meet their objectives by maximizing enrollment in HSA-compatible health plans, which enable them to reduce overall health care expenses, said Elizabeth Ryan, head of Wells Fargos Health Benefit Services. Our business clients appreciate the active role we take in educating their employees. Were empowering their employees through two key benefits tax savings up to $25 or more on each $100 in HSA contributions, and the ability to build a safety net for potential retirement medical expenses. Ryan noted Wells Fargo HSA accounts carry an average balance of $2,736 20 percent more than the industry average of $2,283.*
Wells Fargos best practices for program design and communications for business clients help them to successfully transition to an HSA program and engage their employees to be more actively involved in their health care. Wells Fargos Employer Resource Guide provides guidance on how a client can drive program success. Last year, employers saved $25 million in payroll taxes through Wells Fargos HSA program.
Health Savings Accounts Triple Tax Benefits
The HSA is a powerful, long-term benefit that acts like a health care 401(k)** for retirement medical costs. An HSA provides triple tax benefits. First, contributions are tax deductible, or can be made pretax through payroll deduction. Second, account earnings and interest accumulate tax-free. And third, withdrawals are tax-free when used for qualified medical expenses. Unused HSA funds do not expire at year-end. They carry forward year after year, helping build tax-free savings that can be used to pay for medical expenses in retirement.
Wells Fargo (WFC) is a national leader in providing comprehensive HSA programs, according to a Consumer-Driven Health Care (CDHC) report. Its dedicated sales and service teams help businesses with as few as five employees and as many as 250,000 meet their company needs. For more information on Wells Fargo HSAs, visit https://www.wellsfargo.com/hsa.
About Wells Fargo
Wells Fargo & Company (NYSE: WFC) is a nationwide, diversified, community-based financial services company with $1.4 trillion in assets. Founded in 1852 and headquartered in San Francisco, Wells Fargo provides banking, insurance, investments, mortgage, and consumer and commercial finance through more than 9,000 stores, 12,000 ATMs, the Internet (wellsfargo.com), and has offices in more than 35 countries to support the banks customers who conduct business in the global economy. With more than 265,000 team members, Wells Fargo serves one in three households in the United States. Wells Fargo & Company was ranked No. 26 on Fortunes 2012 rankings of Americas largest corporations. Wells Fargos vision is to satisfy all our customers financial needs and help them succeed financially.
*source: Devenir, a leading independent investment advisor and consultant in the health savings account industry. Based on 12/31/12 report.
**HSAs have different eligibility criteria and contribution limits than 401(k)s. Unlike 401(k)s, HSAs are typically structured so that they are not subject to ERISA.
Wells Fargo & Company
Andrea Mahoney, 415-222-4722
Source: Wells Fargo & CompanyCopyright Business Wire 2013