Alegeus Technologies Now Provides Benefit Account Administration and Payment Processing Support for More Than 30 Percent of the Benefit Accounts in Market
Published on June 11th, 2014
Alegeus Technologies, the market leader in healthcare and benefit payments, continues to strengthen its position as the industry’s most widely-used consumer benefit account and payments platform, now powering for more than 30 million consumers and 225,000 employer groups. In 2013, the Alegeus technology provided benefit account administration and card processing for more than 30% of the benefit accounts in the CDH market – and processed more than $9.1 billion in consumer healthcare transactions. With the unique perspective of managing this volume of activity, Alegeus has published a new infographic unveiling industry benchmarks for account growth and cost savings.
As these numbers affirm, Alegeus provides the industry’s largest and most scalable consumer healthcare funding platform – empowering tens of millions of consumers to better manage their ever-growing responsibility for healthcare purchase and funding,” said Steven Auerbach, Alegeus Chief Executive Officer. “By leveraging metrics from across the Alegeus book of business, we are able to provide unique insights and useful benchmarks – giving account administrators a mechanism to better assess their own performance in account growth, card penetration, auto-substantiation rates, and efficiency of reimbursement processing.
Alegeus continues to see increased participation and account growth for all benefit account types processed on its platform, including flexible spending accounts (FSAs), health savings accounts (HSAs), health reimbursement arrangements (HRAs), and wellness accounts. Mirroring current market trends, Alegeus is seeing particularly strong growth rates in HSAs and HRAs – significantly exceeding the overall market growth rates for those account types. Top quartile Alegeus clients averaged more than 145 percent growth in these categories.
Although industry analysts are predicting flat overall FSA market growth, Alegeus is already seeing evidence that the recent IRS policy change (allowing rollover of unused FSA funds at the end of the plan year) is influencing participant behavior. Early adopter clients that have fully embraced the carryover policy change are outpacing their peers in FSA growth – with some clients attributing high single-digit incremental FSA growth directly to the policy change.
By enabling the adoption of electronic methods of account administration, payments, communications, and self-service, Alegeus has helped its clients achieve dramatic cost savings – saving constituents an estimated $173 million in calendar year 2013 alone. Increasing adoption of mobile applications and text – coupled with the now ubiquitous nature of payments cards, the web and email – are allowing Alegeus clients to eliminate paper-based communications, reduce manual claim transactions, increase card program auto-substantiation rates, and convert check-based payments and reimbursements to more cost-effective and convenient electronic methods.
Our clients choose the Alegeus platform because it provides the most flexibility and the broadest set of automation and self-service capabilities in the industry,” said Auerbach. “This translates into significant cost savings for our clients – and a launch pad for profitable business growth.
Alegeus is the market leader in consumer-directed healthcare solutions, offering an industry-leading benefits platform, benefit debit card and mobile app that are transforming the way people navigate the U.S. healthcare system. Our next-generation technology simplifies the administration of healthcare benefit accounts (including FSAs, HSAs, HRAs, wellness incentive, dependent care and commuter accounts), and uses data-driven insights to guide consumers to the right coverage, care and savings strategies. More than 350 Alegeus clients – including health insurance plans and third-party administrators – leverage our deep expertise and proven technology to administer benefit accounts for more than 30 million members and to process more than $9.1 billion in consumer healthcare payments annually. As the healthcare and benefit markets continue to evolve, Alegeus delivers solutions that enable clients to evolve their service offerings, operate their businesses more efficiently, and lead consumers to better health and financial decisions. The company is headquartered in Waltham, MA with operations in Orlando, FL and Milwaukee, WI.