Mellon Introduces Fully Integrated Health Savings Account (HSA) Solution - HSAs represent a powerful new approach for addressing spiraling health care

costs -



    RIDGEFIELD PARK, N.J., April 22 /PRNewswire-FirstCall/ -- Mellon Financial
 Corporation's Human Resources & Investor Solutions (HR&IS) business today
 announced that it has developed a fully integrated Health Savings Account
 (HSA) solution that will be offered both through alliance relationships with
 insurance companies and health care plan providers, and to its corporate
 customers nationwide.  HSAs, established as part of the Medicare Prescription
 Drug, Improvement and Modernization Act of 2003, allow employers and employees
 to contribute non-taxable funds (up to $2,600 for an individual and $5,150 for
 a family in 2004) to pay for qualified medical expenses under high deductible
 health care coverage.  Unused funds can be invested and rolled over from year
 to year, with the balance used to pay for qualified medical expenses
 throughout an employee's career or even during retirement.
     "Mellon has a unique competitive advantage by offering a complete,
 comprehensive HSA solution," said James D. Aramanda, Mellon vice chairman and
 head of its HR&IS business.  "Our HSA package is well suited to address the
 needs of both companies and their employees.  We can administer the entire
 plan for employer and employee alike, from establishing and maintaining the
 custodial and investment accounts to processing deposits and payments to
 providing total customer service support."
     Included in Mellon's HSA solution is an interest-bearing checking account,
 coupled with an investment account.  Both personalized checks and a
 MasterCard(R) debit card are provided to facilitate payment for qualified
 medical expenses.  Mellon's patent-pending HSA solution also integrates
 payment processing directly with health care plans, providing a seamless,
 paperless, user-friendly customer experience.
     "HSAs represent a powerful new approach for addressing spiraling health
 care costs.  Both employers and consumers are eager for additional information
 on this product," Aramanda added.  "Consumers are most interested in the many
 tax advantages, especially since contributions to and earnings on HSA balances
 are not taxed, and the use of account funds is tax-free for qualified medical
 expenses."
     Mellon brings measurable experience to the HSA marketplace, based on its
 position as a major provider of medical savings accounts (MSAs), the precursor
 to HSAs first made available to small companies in 1997.  With more than 40
 insurance company and affinity group marketing partners, Mellon offered MSA
 subscribers a sophisticated dual bank account/investment account product.
 "Based on our MSA knowledge, we have designed an HSA solution that provides
 maximum flexibility, easy payment solutions and competitive investment
 options," Aramanda said.  He added that Mellon is in discussions with numerous
 health care plans regarding the distribution of Mellon's integrated HSA
 solution to their members.
     Human Resources & Investor Solutions is the worldwide human resources and
 shareholder services business of Mellon Financial Corporation (NYSE:   MEL), a
 global financial services company.  Headquartered in Pittsburgh, Mellon 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, human
 resources and investor solutions, and treasury services. Mellon has
 approximately $3.6 trillion in assets under management, administration or
 custody, including more than $675 billion under management.  Its asset
 management companies include The Dreyfus Corporation and U.K.-based Newton
 Investment Management Limited.  News and other information about Mellon is
 available at www.mellon.com .
 
 

SOURCE Mellon Financial Corporation
RELATED LINKS
http://www.mellon.com

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