Bob mendte

Global Interdependence Center

February 2017

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Legal Concerns • Insurance • State by State regulations which are not consistent • Needed in writing since most state regulators are political appointments.

• Banking • Money laundering laws • Durbine • CIP • Medical • HIPAA • ACA 2

Prepaid Cards for Indemnity Payments • Debit cards use has passed credit cards and even cash • 64% of all small purchases (under $150) use debit cards • State & Federal benefits programs have moved to prepaid • Better for low-income recipients • 24% of all adults have no banking relationship

• Other industries have moved to prepaid from checks or cash • Lower cost, no back-end handling costs, less fraud exposure

• P&C Insurance has trailed this trend • Barriers are primarily regulatory

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InsurCard Workers’ Comp State Approvals

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Benefits to Recipient • Funds are immediately available to claimant • Funds are protected • Zero Liability policy, Reg E, • Universal access • ATMs,

Benefits to Recipient • •

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Reduces Fraud Handling cost is significantly reduced • Voids and stop-payments of checks eliminated •

Reduced customer care costs

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Escheatment & other backend accounting

Customer Service— is outsourced to card company

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Virtual Card for Providers Virtual Card: • One time use debit card • Enters the payment into the provider’s merchant terminal • Accompanied by EOB • Fits with the Provider’s • Practice Management

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Virtual Card EOB

EOB sent with Payment • Can be Scanned • Office can’t credit the payment without the EOB - contains PHI data - must be sent based on HIPAA

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Sales Concern • How do we make money • Is there a reason to buy • Do we solve a problem • Understand the problem • Design the product to address the problem • Is there sufficient frame of reference for the customer to understand the product worth • Can We Convince Banks, Producers, Investors

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