Consumer-driven health (CDH) plans are helping employers balance the delicate task of offering a cost-effective benefits package that also resonates with and remains
attractive to employees.
Account-based programs, such as flexible spending accounts (FSAs), health savings accounts (HSAs), and health reimbursement arrangements (HRAs), are common components in many of today’s employer benefit plans.
Offering employees access to benefits accounts via prepaid cards is making it easier for employees to make qualified healthcare purchases with a simple swipe of a card. These healthcare payment cards can also provide new convenience, efficiency, and cost-saving opportunities for employers and can help employees realize enhanced value from their benefits package.
Employer Advantages
Verification and reimbursement processing can be time-consuming for employers and benefits managers, and healthcare payment cards can help reduce paper claims, receipts and checks. Auto substantiation allows FSA and HRA cardholders to make qualified health care purchases at a broad range of merchants without having to submit receipts for verificationi.
Employers may also benefit from offering all of their healthcare accounts through a single card platform. For example, HSA programs stacked with an FSA or an HRA may be offered with other tax-advantaged employee benefit accounts, such as commuter accounts.
These benefits help strengthen employee participation while nearly eliminating the manager’s ‘’pay and chase’’ routine.
Empower Employees with Choice
Consumers are increasingly turning to debit, credit and prepaid cards for everyday purchases. Employers who choose to add healthcare cards to their CDH plans are delivering the convenience and security their employees are embracing in their daily payment behavior.
Employees can use their healthcare payment cards to make easy, pretax purchases for doctor co-payments, prescriptions and other qualified expenses at a broad range of merchant locations. They also provide consumers with a convenient and secure way to make a payment arrangement for post-service healthcare bills or recurring expenses.
Visa Healthcare cards are backed by Visa’s Zero Liability Policyii safeguarding cardholders from unauthorized purchases and replacing the full amount of unauthorized transactions.
Building Awareness Boosts Adoption
Ongoing communication to employees through each stage of the benefits cycle, from pre- and post-enrollment to card delivery and ongoing use, can help employers highlight the simplicity and convenience aspects of health spending and savings accounts.
Healthcare cards are vital tools for driving adoption of CDH plans. They offer valuable opportunities for offering benefits that speak to the unique needs of employers and employees, regardless of whether these involve cost containment, convenience, reduced overhead or flexibility. Early planning and communicating can help employers build innovative benefit solutions that provide value to all involved.
Stacy Pourfallah is senior business leader of healthcare products for Visa. She is responsible for the strategy, product development and management of healthcare and employee benefit card products. Pourfallah is a member of the board of the Employers Council on Flexible Compensation (ECFC) and of Special Interest Group on IIAS (SIGIS). Pourfallah received her bachelor of science degree in marketing from the University of Arizona and her masters in International Marketing and Finance from DePaul University. For more information, contact healthcareprograms[at]visa.com or visit www.visa.com/healthcare.
iBolstered by 2008 IRS regulation, non-healthcare retailers (such as pharmacies, supermarkets and discount stores) that sell eligible healthcare goods and services were required to update their point-of-sale (POS) systems to automatically identify items that are eligible to be paid with an FSA or HRA card.
iiVisa’s Zero Liability Policy covers U.S.-issued cards only and does not apply to ATM transactions, PIN transactions not processed by Visa or certain commercial card transactions. Cardholder must notify issuer promptly of any unauthorized use. Consult your Visa card issuer for additional details.