CARDS, CARDS, CARDS
Healthcare Debit Cards Bringing electronic payments to a complex ecosystem
W By Chris Byrd
hen it comes to complexity, there are few payment ecosystems that can match healthcare. A myriad of rules govern what gets covered and where, and how much the payer (government or private insurance) pays and what is left to the responsibility of the individual healthcare consumer. These rules are customized based on a number of considerations – political, budgetary, and employee recruitment, motivation, health, and retention. May/June 2015
All of this is taking place in front of a backdrop of ever escalating healthcare costs. According to the Canadian Institute for Health Information, over the past ten years per capita private sector health spending grew at nearly twice the rate of inflation. Sixty-five per cent of Canadians have some form of supplementary private health insurance, and much of this is provided by their employer. So the cost pressures are increasing on employers as well as individuals. Employers have a number
of options to provide this supplementary coverage, but as they continue to grapple with this cost challenge, they are increasingly turning to Healthcare Spending Accounts (HSAs). These HSAs are used by employers to help their employees and eligible dependents pay for healthcare expenses not covered by the provincial plans. HSAs can be a superior alternative to traditional insurance and a way for employers to not only control costs, but also improve employee satisfaction. PAYMENTSBUSINESS
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