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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