Unique Custodian Model Enhances Flexibility and Control for Employers, Health Plans and Financial Institutions
Omaha, Neb.—March 17, 2010—PayFlex Systems USA, Inc. (“PayFlex”), a leading administrator for employee benefit programs, today announced a new and differentiated model for Health Savings Accounts (HSAs). Expanding on existing technology, the new PayFlex HSA platform offers comprehensive support for employers, financial institutions and health insurance plans providing HSAs—tax-advantaged accounts available to consumers with high-deductible health plans. PayFlex’s new custodian-agnostic product enhances flexibility and control for employers and insurers, while extending its HSA offering to any financial institution. This allows employers and health plan customers the control of choosing the financial institution of their choice, versus existing models that typically force you to utilize a designated custodian. Additionally, banks and health plans can select the PayFlex HSA directly to enhance their current HSA offerings with PayFlex’s reconciliation expertise.
PayFlex offers the benefits of a comprehensive solution at one destination, as it can now handle all key technologies and services related to administering HSAs. These include account reconciliation, an account investment platform, an integrated reimbursement payment solution, an easy-to-use consumer Web interface, debit cards for accessing HSA funds, IRS compliance expertise and call center support. Its latest product includes a new Web and payments platform for processing consumer bill payments, and delivery of account statements to individuals.
Addressing the Changing Healthcare Landscape with Health Savings Accounts
Employer-based healthcare is in a massive state of flux. According to a 2010 survey by Tower Watson and the National Business Group on Health, eighty-three percent of companies have already revamped or are expected to revamp their health care strategy. Employers are looking to contain the sky-rocketing costs of healthcare, which is growing unsustainably at approximately twice the rate of inflation. To address this challenge, the above survey found that 61 percent of all companies plan to offer consumer-driven health plans (CDHPs) in 2011. CDHPs consist of low-premium, high-deductible plans pared with a health savings account or similar funding mechanism.
“Health savings accounts have the potential to transform healthcare like managed care did in the 1980s,” said Robert Natt, CEO of PayFlex. “As the largest third-party administrator of HSAs today, PayFlex’s vision is to bring innovative products and services to the market—with the ultimate objective of increasing engagement and driving down costs.”
Bolstering health savings accounts, a March 2 Congressional letter by President Barack Obama highlighted them as one of four policy proposals he seeks to explore in a bipartisan fashion, and supports including HSA-compliant plans in any proposed national exchange program. HSA-associated plans have lower premiums, which employers can pass down by reducing contributions workers must pay, and/or by adding funds to their employees’ health savings accounts. Workers also benefit because they can carry over HSA savings year-over-year.
PayFlex Extends its Health Savings Account Leadership
A financial reconciliation expert since 1986, PayFlex processes nearly $1 billion dollars in employee benefits transactions annually. All PayFlex benefits programs including our new HSA can be administered via the same Web portal and debit card, thus providing convenient account access. The new PayFlex HSA platform offers the following additional benefits:
- Streamlined enrollment —PayFlex integrates with existing HSA-eligibility systems, allowing for account enrollment in minutes instead of days. Additionally, PayFlex enables efficient, signature-less online enrollment.
- Ease of contribution—By interfacing with employer online forms or file transfer protocol sites, PayFlex helps streamline employer and employee deposits, for scheduled and batched contributions.
- Customization—PayFlex enables employers, banks and health plans to customize the HSA user interface, helping ensure branding consistency with their existing Web site.
- Supporting account-holder tax documentation—After downloading healthcare receipt images, accountholders can link them to accompanying transactions listed in the online health savings account, enhancing tax-filing documentation.
- Consumer decision support tools—PayFlex recognizes that successful account management is predicated upon the consumer’s ability to make choices relevant to their health-related circumstances. With that in mind, PayFlex is developing a suite of tools that is consumer friendly, easy to use and designed to engage, educate and empower the account holder.
About PayFlex Systems USA, Inc.
PayFlex (www.payflex.com) is a leading nationwide provider of administration for employer benefit programs, with 20 years of experience. PayFlex provides a broad range of services to several thousand employers, including many Fortune 1000 companies that employ several millions of employees. PayFlex services include flexible spending accounts (FSA), health reimbursement accounts (HRA), health savings accounts (HSA), commuter, dependent care, along with COBRA and direct billing, processing nearly $1 billion dollars in transactions each year. PayFlex was named in the Inc. 5,000 fastest-growing companies for the second straight year and is a six-time recipient of the Omaha 25 Excellence in Business Award.
Andrew Law/Stacy Nartker
Schwartz Communications, Inc.