HSA Definition

• A health savings account is an account in which money is set aside to be used exclusively for medical purposes. These accounts allow an individual to put money into the account pre-tax. While in the account, the money accrues interest. Those who use an HSA are able to use the money for medical purposes, but at age 65 the money can be used for anything, according to MSA Info.
  
  

Target Markets

• Before beginning to sell health savings account plans, it is important to do some evaluation and figure out the appropriate target market. Whereas HSAs can be used by anyone, there are individuals who will safer by using traditional insurance plans. By conducting market analysis ahead of time, these groups can be eliminated from any marketing plans. One market to consider is young professionals with no children or pre-existing health problems. This particular demographic is prone to having less medical expenses and, as such, will find the prospect of using an HSA to be financially prudent.
  
  

Employers

• Selling HSA plans through an employer can be easier and more efficient than targeting individual customers. When working with employers, it is important to prepare a presentation to explain the benefits of opening a health savings account.
  
  Something to consider when making a presentation is the fact that an organization will have a wide array of employees, so all explanations should be made as simple as possible. Just because the accounting department understands tax implications does not necessarily mean that those in other areas will.
  
  

Comparison to Traditional Insurance

• Given that health savings accounts are part of the broader scope of health insurance it is important to understand how they compare to traditional insurance plans. There are some inherent similarities between the two forms of insurance.
  
  One similarity is that they both use deductibles, which will affect coverage. If an HSA-protected individual meets his yearly deductible, the plan will cover the rest of the expenses at an established percentage.
  
  Another similarity is that there are certain uses which are acceptable and others which aren't. Much in the same way that an insurance company will not cover unnecessary plastic surgery, a health savings plan cannot be used for medical purposes which are not approved.
  
  Unlike having traditional health insurance, an individual with an HSA has greater control. An example of this is being able to pick which doctor to go to, instead of having a limited pool of doctors who are part of a particular insurance group's network.
  
  

Selling Points

• Health savings accounts have an array of benefits which can be used as selling points for potential customers. One such benefit is the fact that an HSA does not expire. At the end of the calendar year, any unused money is rolled over into the next year. This is different from a FLEX account, which is "use it or lose it" and cannot be carried over.
  
  When competing against traditional insurance, a selling point for a health savings account is the fact that the HSA-insured individuals do not lose money when the account is not being used. Those who have a traditional plan pay money every month, regardless of whether the plan is being used. A traditionally-insured person, who spends, without getting anything in return, is essentially losing money.