NEW YORK, May 17 /PRNewswire/ -- The Guardian Life Insurance Company of America (Guardian) and Destiny Health are now offering a Health Savings Account (HSA) option in conjunction with The Destiny Health Plan(TM). The addition of the HSA option to this fully integrated consumer-driven healthcare plan gives employers and consumers another way to achieve maximum value with their healthcare dollars. This innovative consumer-driven plan is currently available through the Guardian Destiny alliance to employers in Illinois, Virginia and Washington D.C.
Destiny pioneered an HSA-like product in the U.S. more than three years ago. HSAs were formally established as part of the Medicare Modernization and Prescription Drug Act of 2003, but Destiny Health CEO Scott Spiker says the company's long experience in balancing comprehensive protection with personal health incentives has allowed it to design an HSA that goes above and beyond what is offered in the marketplace
"This is not simply an add-on product," Spiker said. "The plan design is fully integrated administratively and supported with the tools to make informed healthcare decisions. What's more, we have added even more benefits through our Vitality Program that reduce out of pocket expenses associated with hospitalization and serious illness."
"We see HSAs as a very important piece of legislation," said Rich White, Senior VP for the Guardian. "As was the case in June of 2002, when the IRS clarified the tax status of Health Reimbursement Arrangement (HRA) contributions, the Federal Government has once again provided endorsement for the consumer-driven concept with the creation of Health Savings Accounts."
Guardian and Destiny Health's official launch of the HSA product coincides with a well-reported groundswell of interest among employers in the concept of consumer-driven healthcare and its potential to:
-- Offset escalating health insurance premiums;
-- Give employees greater control and personal choice in the healthcare
they receive; and
-- Provide value to employees, whether they are sick or well in a given
year.
"We are delivering on the promise of motivating employees to change their behaviors in ways that lower costs and make possible premium increases that are well below the industry average," Spiker said. "For example, one survey (conducted by Chicago-based Analytical Directions in 2003) showed that 79% of our members started an exercise or nutrition program within the preceding 12 months, compared to 32% of members of other plans. In other studies, 47% of new members report asking their pharmacist for lower-cost prescriptions; 41% say they are taking better care of themselves; and 37% cited improvements in their preventive healthcare regimen."
Spiker said that numbers leave no doubt that while spiraling healthcare costs are a continuing problem, the American people are up to the challenge of providing the solution.
Employers and employees can contribute pre-tax dollars into the accounts (up to $2,600 for an individual and $5,150 for a family in 2004), and the money can be used to pay for any qualified medical expense, including over-the-counter medicines. Interest on HSAs is tax-free and unused funds roll over from year to year. Most important, the accounts are owned by the employee and move with that individual should he or she change jobs or retire.
About The Guardian Life Insurance Company of America
Founded in 1860, The Guardian Life Insurance Company of America, New York, NY (Guardian) is the fourth largest mutual life insurance company in the United States. As of December 31, 2003, Guardian and its subsidiaries had $37.2 billion in assets. With more than 5,000 employees, over 2,800 financial representatives and nearly 100 agencies nationwide, Guardian and its subsidiaries protect individuals, businesses and their employees with life, disability, health and dental insurance products, and offer 401(k), financial products and trust services. More information on Guardian can be obtained at http://www.guardianlife.com/ .
About Destiny Health
Destiny Health motivates active participation in healthcare and rewards the member behavior change necessary for a healthier lifestyle. For employers, Destiny Health's Comprehensive Consumer-Driven Healthcare. model is proven to control rising healthcare costs through lower premium increases. The Destiny Health Plan is a health insurance solution for those who seek greater value, superior choice, outstanding service and comprehensive coverage. This consumer-focused strategy is modeled after Destiny Health's sister company, Discovery Health, an international life and health insurance company that has successfully enrolled over 1.6 million members in its medical plan since 1992. Combined, Destiny Health and Discovery Health are the largest providers of consumer-driven healthcare in the world. For more information visit http://www.destinyhealth.com/ .
Destiny HealthCONTACT: Eileen Rochford of Destiny Health, +1-773-463-2480, office,+1-312-953-3305, cell phone
