Alegeus: CDH Accounts Up 63 Percent Since 2010 (April 8, 2013)
With consumer directed healthcare (CDH) accounts on the rise, the use of payment cards linked to those accounts also is increasing. And Waltham, Mass.-based Alegeus Technologies, which offers healthcare benefit and payment solutions that feature healthcare spending debit cards, is seeing robust growth, the company announced today. During the three-year period from 2010 to 2013, Alegeus saw a 63 percent increase in CDH accounts provided through its Paybefore Award-winning platform, says Tom Torre, CEO of Alegeus, whose clients include more than 500 health insurance plans, third-party administrators and financial institutions.
“As employers move toward high-deductible plans, [CDH accounts] are front and center as part of plan designs,” Torre tells Paybefore. Furthermore, transaction volume on Alegeus’s CDH-linked debit cards has grown to more than $5 billion annually, while average transaction values have jumped by more than 12 percent. In line with the CDH market at large, a major portion of Alegeus’s CDH growth has been comprised of health care reimbursement arrangements (HRAs) and health savings accounts (HSAs). The company also has seen its flexible spending accounts (FSAs) growing faster than the industry average, despite overall FSA growth trends leveling off.
Torre attributes Alegeus’s growth to its single platform that provides an array of services, from benefits administration to CDH debit card processing. The single platform benefit is significant, Torre says, because Alegeus is able to maintain only one account balance, regardless of whether a manual claim or card transaction is being processed, eliminating out-of-balance issues that occur with other platforms.
