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    September-2017
 
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Small Firms Caught In Bankruptcy Of HSA Tech Support Firm, But No Harm Done

Healthcare premiums are a great concern to small businesses constantly looking for ways of reducing costs.

Many smaller firms have embraced Health Savings Accounts as a means of reducing costs.

This avenue is particularly attractive to smaller firms with under five employees.

Sometimes these firms get caught in big frauds.

This was the case of many individuals and families who work at home or are independent contractors.

National Public Radio recently featured a husband-and-wife who chose an HSA and put their money with a financial institution.

When executives at the software company providing the technical support made off with some funds, some depositors were temporarily out of monies.

They were only out the funds for a weekend when the financial institution they banked with made them and 14,000 other depositors whole.

However, sometimes even the best news organizations can get it wrong.

National Public Radio is reporting on the mess at Canopy Financial which was sold recently out of bankruptcy to PayFlex.

While Canopy Financial was essentially a platform to manage HSA accounts, monies for some depositors was somehow misappropriated by the company.

One senior manager is under a cloud and the company is now closed.

However, the story indicated that some people were out the monies in their HSA account.

This is not true and in fact the account custodian, Colony Financial has made all 14,000 depositors whole while it seeks to recover the monies.

The moral of the story supposedly is that depositors need to be careful as to where they place their monies.

With more than 1,200 financial institutions ranging from JPMorganChase to Pactel Credit Union now have more than six million such accounts under management.

A list of banks offering HSA accounts is available at www.hsafinder.com.

NPR brings up the old familiar theme of federal oversight requirement ignores the stringent rules set up by current regulatory agencies and fails to point out that almost all HSA accounts fall under existing regulations and are insured by government agencies just like every other bank deposits..

Herewith is the link to the NPR story and we encourage readers to read this account with a grain of salt.

 


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