CDH Trendlines June 25, 2013 Consumer Driven Market Report
The biggest single CDH contract in history was awarded by Xerox to ConnectYourCare in a major boost to the CDHP multi-purse product. Xerox said today that ConnectYourCare will in effect replace ACS for the entire BNY Mellon HSA portfolio, along with all Xerox FSAs and HRAs in the recently-announced BenefitWallet product. BenefitWallet is the second-largest HSA custodian in the U.S. with 27,000 HSA employer customers. It says it serves more than 2 million account holders and dependents with an accumulated $1.4 billion of HSA assets. That translates into about 900 million HSA accounts.
Large Insurers Shifting To Services Model
At least two of the largest U.S. insurers are beginning to convert large chunks of their sales force from selling insurance to selling services and support, CDMR has learned. The goal is to prepare for the coming arrival of online health plan sales which is about to take off and become a major distribution channel, while direct B2B sales fade. One carrier is evaluating its entire sales force to screen out reps unable to transition. CDHPs could be the big winners if online health insurance sales reduce admin costs, and also concentrate the market on low-cost insurers. At the same time there are huge opportunities opening for big insurers who can own or control new digital or cloud-based services like practice management software, cloud-based PHRs and patient-controlled payments.
Health Exchanges Will Be Ready October 1
Despite a ton of media spin the new GAO report tracking health exchange adoption makes clear that health exchanges will be up and running on time October 1. If you bother to read the details there is very little difference between states “doing their own exchange” and states defaulting to HHS. In fact, all 50 health exchanges will be state-wide, will be branded by the state, and will require huge involvement by state computers and staff. Likewise, the bottlenecks are going to be at the state level: (1) the bad apple states will not be able to offer eligibility for subsidies, and (2) health plans will not be paid until months after enrollment. The federal functions — IRS, SSA, DOL and HHS — are not the problem.
Virtual Card Payments May Enhance ACH
The rising adoption of ACH cards by providers versus getting a check in the mail will get a new twist that could increase the use of electronic payments and more direct deposits. Last week Alegeus Technologies announced it will offer physicians and payers a new payment channel called “virtual cards” that allows faster and more trackable transactions. A new partnership with WEX Inc. will jointly introduce a new virtual card solution for the post-adjudication claims market. Alegeus chief Tom Torre tells CDMR that it is not viewed as a replacement for the other payment channels. Alegeus is “agnostic” about which channel is selected, but expects strong growth in the product as an enhancement.
ACH Volume Up 2.9 Percent in 1st Quarter
The ACH Network grew by just 2.9% in the 1st Quarter 2013 compared to a year ago, the slowest in a year, according to NACHA statistics. But Web ACH transactions were up 9.4% to almost 800 million transactions. According to a study of 1,000 billers released in May by NACHA, Direct Payment via ACH is the leading method consumers use to pay their bills. The study found that more than three-quarters of those that offer electronic payment options now offer Direct Payment via ACH, and almost 50 percent of consumer bills are paid through this method. Forty-two percent of consumer bills are still paid through the mail, and 11 percent are paid with credit/debit cards.
© 2013 Interpro Publications Inc., Washington D.C.