SelectAccount acquires health savings account (HSA) business from American Chartered Bank
More than 52,000 HSAs to transfer to one of nation’s largest account administrators
EAGAN, Minn. and SCHAUMBURG, Ill., June 1, 2012 /PRNewswire/ — SelectAccount®, one of the largest medical spending account administrators in the country, announced today that it has acquired the health savings account (HSA) business of American Chartered Bank, a privately held bank headquartered in Schaumburg, Ill. SelectAccount, a Minnesota-licensed insurance company, is an affiliated business of Blue Cross and Blue Shield of Minnesota.
The SelectAccount acquisition includes more than 52,000 HSAs with total deposits of nearly $120 million, bringing the total amount of assets in consumer medical savings accounts under SelectAccount’s management to approximately $400 million.
A popular component of consumer-directed health plans, an HSA is a tax-advantaged account that allows consumers to reduce their taxable income and pay for their share of health care expenses, including health plan deductibles, with tax-free dollars. Unspent HSA funds also earn interest tax-free, allowing the account holder to save for health care costs, often with an eye toward retirement savings.
“Our expertise in medical spending accounts, combined with exceptional customer service and sales support, has made SelectAccount one of the country’s most successful account administrators,” said David Spalding, CEO of SelectAccount. “We’re excited to earn the continued business of these American Chartered Bank customers through our easy-to-use account management tools, our keen understanding of the health care space, and our commitment to state-of-the-art technology that gives customers quick and easy access to their health care dollars.”
The HSA portfolio developed by American Chartered Bank is a mix of individual account holders and businesses that offer medical spending accounts to employees. SelectAccount will directly manage the individual HSAs, and will support employers by offering robust tools that allow employees to manage their personal HSAs, including payroll contributions.
“Our HSA client base has grown significantly since we established this business in 2004, eventually ranking the bank in the Top 20 nationally among HSA custodians,” stated Bob Riter, chairman, American Chartered Bancorp. “After thoughtful consideration, we determined to make the strategic decision to exit the HSA business and focus exclusively on our core businesses of commercial and personal banking. We had been approached by numerous parties interested in purchasing our HSA portfolio, but SelectAccount was the one company that we knew could offer the total HSA client experience through its own exceptional systems and processes.”
MII Life, Inc., doing business as SelectAccount, is a Minnesota-licensed insurance company regulated by the Minnesota Department of Commerce, and approved by the U.S. Department of Treasury as a non-bank HSA Trustee. An affiliated company of Blue Cross and Blue Shield of Minnesota, SelectAccount is owned by Aware Integrated Inc. For more than 20 years, SelectAccount has offered innovative and industry-leading spending accounts. Today, SelectAccount provides health care saving solutions in all 50 states, including service to members through 14 regional health plans and nearly 7,000 employers. SelectAccount now has approximately $400 million in consumer medical savings assets under management, making it among the 10 largest account administrators in the country. Visit SelectAccount.com to learn more.
About American Chartered Bank
A subsidiary of American Chartered Bancorp, American Chartered Bank has $2.3 billion in assets and is headquartered in Schaumburg, Illinois. The Bank is a leading commercial bank with a focus on Chicago-area businesses and the people who own and manage them, and has 15 branches located throughout the Chicago area. Visit AmericanChartered.com to learn more.