Press Releases
Independent Health Teams with Mellon to Launch Health Savings Account
BUFFALO, N.Y. and RIDGEFIELD PARK, N.J., April 29, 2005 — Independent Health's iDirect employer-sponsored health plans will offer Health Savings Accounts (HSAs) administered by Mellon Financial Corporation, according to an agreement announced today.
HSAs are portable, tax-favored savings accounts used in conjunction with qualifying health plans that have minimum deductibles of $1,000 for individuals and $2,000 for families. Both employees and employers can fund the accounts, which participants can use to pay for qualified health care expenses, such as co-payments and prescription drugs. The funds may also be used to pay for non-covered services and items such as eyeglasses, acupuncture, and dental care. Monies in the accounts grow tax-free and roll over year-to-year and job-to-job until retirement, when participants can continue to use the funds for qualified medical expenses.
Features of Independent Health's iDirect include:
- A choice between point-of-service and PPO type plans
- Independent Health's comprehensive provider networks
- More than 22,000 participating pharmacies throughout the country
- Debit card convenience when paying for services from their Mellon HSA
- Online account access, such as account balance information and transaction capabilities
"Independent Health is excited to be at the forefront of a new generation of health care options with our iDirect HSA plans," said Joseph Wild, Jr., Independent Health's senior vice president, sales and product development. "Mellon's expertise in financial services will enable employees to take full advantage of the benefits of health savings accounts and will complement Independent Health's expertise in providing a wide range of health solutions to employers and employees."
"HSAs represent a powerful new approach for addressing spiraling health care costs," said James D. Aramanda, Mellon vice chairman and head of its HR&IS business. "Together, Mellon and Independent Health will conveniently provide a full-service HSA product." Mellon is a leading provider in HSAs, offering a complete range of services for health plans and employers and interest-bearing, FDIC-insured accounts for individuals. Mellon's growing list of HSA alliance and administration agreements currently reaches 130 million potential participants.
About Independent Health
Headquartered in Buffalo, N.Y., Independent Health began operations in 1980 and has consistently been rated among the top health plans in the country for member satisfaction and services. In addition to its original HMO, the health solutions company has expanded its managed care offerings to include point-of-service, PPO and EPO products, Medicare and Medicaid managed care, traditional indemnity and coverage for self-funded employers. The company provides health benefits and services to nearly 370,000 individuals in Western New York and throughout the country. For more information, visit www.independenthealth.com.
About Mellon Financial Corporation
Mellon's Human Resources & Investor Solutions is a global human resources outsourcing, consulting and shareholder services business that creates value for clients through a complete range of human capital management and shareholder solutions. On March 16, 2005, Mellon announced a definitive agreement to sell its Human Resources consulting and outsourcing business to Affiliated Computer Services, Inc. (ACS) in a transaction that is expected to close before the end of the second quarter of 2005. Mellon Financial Corporation, a global financial services company, is headquartered in Pittsburgh and is one of the world's leading providers of financial services for institutions, corporations and high net worth individuals, providing institutional asset management, mutual funds, private wealth management, asset servicing, payment solutions and investor services, and treasury services. Mellon has more than $4.0 trillion in assets under management, administration or custody, including