Vice Chairman Hood Touts Value Health Savings Accounts (HSA) Bring to the Credit Union Community
March 20, 2009, Alexandria, Va. –National Credit Union Administration (NCUA) Vice Chairman Rodney E. Hood addressed the Members Health Network 1st Annual Credit Union HSA Roundtable at Allegacy Federal Credit Union, one of the nation’s top 100 credit unions in assets, located in Winston-Salem, NC. The event gathered credit union leaders in an effort to provide a forum to discuss what is working, what challenges remain and what the future looks like for credit union leadership in the emerging HSA market. The event focused specifically on the unique opportunities facing credit unions to expand member services while advancing business development through HSA programs.
“I would like to applaud the Members Health Network and Allegacy FCU for organizing this valuable dialogue, particularly during the current economic climate – this is truly an example of American innovation in the credit union spirit of ‘People Helping People.’ Despite the mounting uncertainty in today’s financial arena, you are taking a proactive approach to making a difference that will not only serve to benefit your financial institutions, but most importantly, the members you serve,” said Hood.
Credit unions that make HSA’s available provide an exceptional advantage in that they offer a duel relevancy – to both the businesses and individual in their field of membership. Hood went on to highlight these potential benefits:
- Businesses – offers increased opportunity for the sale of other business services through strategic HSA programs that help the employer adopt HSA Eligible plans, HSA education, and employee satisfaction.
- Employee/Individuals – Increased membership to whom credit unions can offer other valuable products and services unique to that credit union.
A recent Wall Street Journal article stated: “Credit unions are more able – and willing – than most of their banking counterparts to dole out money to small businesses.” The Vice Chairman further noted statistics from CUNA which said that 27% of credit unions in the U.S. offer business loans, and that amount was up 18% to almost $33 billion last year. As more credit unions begin to offer HSA’s, they will be better positioned to be a full service provider for businesses.
According to the U.S. Government Accountability Office, since first authorized by the federal government January 1, 2004, the number of HSA accounts has increased substantially to over 3 million accounts nationwide. Industry experts expect that by 2010 this number will be between 10-15 million people with accumulated assets ranging from $10 to $62 billion.
Vice Chairman Hood stressed the importance of moving quickly to develop effective strategies. “Credit unions must embrace a proactive strategy to stay competitive in the marketplace while continuing to focus on education for both the credit union employees as well as the consumer. Given the close relationship between credit unions and their members, you are well-poised to spread awareness of HSA’s before other larger financial institutions.”
In closing, Mr. Hood directed the attendees to the Members Health Network website at: http://www.membershealth.net/ where they have detailed information regarding their platform as well as web-based advisory tools that can be customized to meet the educational needs of individual credit union.
The National Credit Union Administration is the independent federal agency that charters and supervises federal credit unions. NCUA, with the backing of the full faith and credit of the U.S. government, operates the National Credit Union Share Insurance Fund (NCUSIF), insuring the savings of nearly 89 million members in all federal credit unions and the vast majority of state-chartered credit unions. NCUA is supported by credit unions, not federal tax dollars.
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