Citi and WageWorks in Health Savings Account Alliance
New York, NY - Sep 2007 – WageWorks Inc., announces that it has entered into a strategic relationship with Citi Markets & Banking, to be the distribution partner for Citibank Health Savings Accounts. WageWorks will now offer this solution to its corporate clients, which include 100 of the Fortune 500 companies. As a result, employees of these companies will soon be able to take advantage of the WageWorks easy-to-use HSA administration solutions, backed by the trusted Citi brand.
This strategic alliance has benefits for both Citi and WageWorks; it advances Citi's position in the increasingly important healthcare payments business and enhances the value of the WageWorks suite of tax-advantaged benefits solutions. With this alliance, Employee Benefits decision makers will have access to the only HSA solution that delivers a completely integrated spending account embedded in a multi-purse card, backed by world-class brands. WageWorks is the leading HSA administrator to offer all tax-advantaged benefit products on a single platform, including built-in debit cards, convenient enrollment, account management, and customer support tools to give program participants more ways to access their funds.
Introduced in 2003, HSAs — which must be paired with high-deductible health plans (HDHPs) — provide individuals more control when managing their out-of-pocket share of rising health care costs. Since HSA contributions and qualified withdrawals are made tax-free, participants are able to save up to 40 percent on health care expenses. Unused funds are portable, roll over from year-to-year and gain compounded interest tax-free. Since funds can also be withdrawn penalty-free as retirement income after age 65, HSAs are often considered a supplement to traditional retirement savings such as 401(k) plans.
"We are delighted to add WageWorks to our portfolio of strategic alliances. Our partnership with WageWorks represents a unique opportunity for us to continue our expansion in a rapidly growing HSA market as High Deductible Health Plans (HDHPs) gain momentum." said David Maya, Global Head of Business Development and Strategy at Citi's Global Transaction Services unit. "Our strategy is to partner with leading market players who can bring our full breadth of payments, receivables, liquidity, and other transaction banking services to clients," he added.
"WageWorks' tax-advantaged benefits programs are designed to help working families lower their cost of living. In fact, this year WageWorks will save more than one million working families a combined one billion dollars — at virtually no cost to their employers," said Joe Jackson, WageWorks chief executive officer. "We could not be more pleased to add Citi's trusted brand to our complete portfolio of solutions."
Citi, the leading global financial services company, has some 200 million customer accounts and does business in more than 100 countries, providing consumers, corporations, governments and institutions with a broad range of financial products and services, including consumer banking and credit, corporate and investment banking, securities brokerage, and wealth management. Major brand names under the trademark red arc include: Citibank, CitiFinancial, Primerica, Citi Smith Barney and Banamex. Additional information may be found at www.citigroup.com or www.citi.com.
Founded in 2000, WageWorks provides tax-advantaged health, wellness, commuting and child and elder care benefits. In 2007 more than 100 of America's Fortune 500 employers and millions of their benefits-eligible employees use WageWorks to administer their programs. As the cost of living continues to rise and more health care costs are pushed to employees, WageWorks seeks to eliminate barriers to benefit participation so working families can save money and improve their overall well-being.
WageWorks provides easy-to-use benefits programs that help save time, and educational tools and resources to increase employees' knowledge and understanding of their family's health care and financial needs.
WageWorks is headquartered in San Mateo, CA, with offices in New York, Chicago, Washington, D.C., Phoenix, AZ, Mequon, WI, and Troy, MI. For more information, please visit www.wageworks.com.