Chamber and bank unite for health coverage

The Greater Danbury Chamber of Commerce Inc. and Union Savings Bank have begun marketing health savings accounts sold by ConnectiCare Inc.

The organizations say the arrangement marks the first time a Connecticut bank has teamed up with a chamber of commerce to offer insurance. The Danbury chamber is participating through Chamber Insurance Trust, a marketing agency based in Orange that helps business associations share the cost of offering insurance.

Union Savings is based in Danbury; ConnectiCare is based in Farmington and was acquired three years ago by New York City-based HIP Health Plan of New York.

Health savings accounts (HSAs) were created by the Medicare bill signed by President Bush in December 2003, modeled on a predecessor program called Archer medical savings accounts.

As of January 2007, 4.5 million people nationally were covered by HSAs, according to an annual census by the trade group American Health Insurance Plans, up from 3.2 million the year before and 1 million in March 2005.

HSAs allow people to put money aside on a tax-free basis for future medical expenses. They are used in conjunction with health plans that charge a deductible of at least $1,100 for individuals or $2,200 for families, but cannot be used in conjunction with other health plans or with Medicare. Exceptions include expenses covered by long-term-care insurance; with disease-specific plans such as those sold by AFLAC; and with dental and vision plans.

Starting this year, individuals may make a one-time transfer into an HSA from an individual retirement account such as a Roth IRA.

Connecticut allows sole proprietors with no employees to purchase HSAs at premium rates reserved for groups.

Waterbury-based Webster Bank N.A., whose subsidiary HSA Bank N.A. markets such policies, indicated that account holders had a $1,730 balance on average, up 10 percent from 2006 levels.

The Greater Danbury Chamber of Commerce originally was to have offered a plan through HSA Bank, but changed its mind after being approached by Union Savings, according to Stephen Bull, chamber president.

Other carriers offering individual health savings accounts in Connecticut include:

Ӣ Aetna Inc. of Hartford;

Ӣ American Republic Insurance Co. of Des Moines, Iowa;

Ӣ Anthem Blue Cross Blue Shield of Connecticut in North Haven;

Ӣ Celtic Insurance Co. of Chicago;

Ӣ Golden Rule Insurance Co. of Indianapolis; and

Ӣ Time Insurance Co. of Milwaukee.