UMB Healthcare Services' Dennis Triplett Offers Perspective on HSA Line of Credit Solution; New Service Helps Bridge Cash Flow
August 02 2006 - 10:15AM
Business Wire
Because health savings accounts are attached to high-deductible
health plans, employers find their low cost and high employee
accountability attractive. But as employees begin to build their
HSA balances, they may find that they do not have enough cash to
cover large medical expenses. Employees are then left to figure out
how they are going to pay for their expenses. Financial
institutions are providing a line of credit solution that bridges
the HSA cash flow gap. The line of credit helps employees absorb
the cost of their high deductible. "Because lines of credit are so
new to the industry, we haven't seen just how they'll affect
participation in or acceptance of high-deductible health plans,"
said Dennis Triplett, president of UMB Healthcare Services, a
division of UMB Financial Corporation (NASDAQ:UMBF). "What we do
know, however, is that attaching credit lines helps make health
care more user-friendly, accessible, flexible, convenient, and
efficient for medical practitioners, insurance carriers, employers
and employees. "When lines of credit are handled in an individually
underwritten manner, employers and payers are relieved of the
responsibility of determining credit limits and eligibility," added
Triplett. "That removes them from the decidedly awkward position of
denying credit to employees. And because each account is
individually underwritten, employers hold no liability for their
employee's ability to pay." UMB Financial Corporation (NASDAQ:UMBF)
is a multi-bank holding company headquartered in Kansas City, Mo.,
offering complete banking and related financial services to both
individual and business customers nationwide. Its banking
subsidiaries own and operate 140 banking centers throughout
Missouri, Illinois, Colorado, Kansas, Oklahoma, Nebraska and
Arizona. Subsidiaries of the holding company and the lead bank, UMB
Bank, n.a., include an investment services group based in
Milwaukee, Wisconsin, a trust management company in South Dakota,
and single-purpose companies that deal with brokerage services,
consulting services and insurance. UMB was named one of Business
Week's "Web Smart 50" companies in 2005.
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