Under a new alliance between SunTrust Bank and ConnectYourCare, a division of ExpressScripts, the package they are introducing saves time and effort for smaller companies."By offering best in class product features including; a multi-purse debit card, wellness tools, competitive investment options, 24/7 customer support, claims processing and online options, the SunTrust HSA is designed to help individuals take an active role in directing clients’ healthcare financial future," SunTrust said.
ConnectYourCare first announced the bank-employer product in June 2007 and has several banks as clients in addition to its health plan platforms.
The timing of the announcement during the end of the first quarter supports the theory that most banks are still expanding into HSAs despite the major troubles in credit markets. In fact, new banks like Goldman Sachs are reportedly preparing to enter the HSA space.
This trend of adoption by small firms was first noted in 2006 by Information Strategies, Inc., this newsletter’s parent.
According to ISI’s research, CDH account firms and bank tech vendors are seeing a sudden rush of interest that is expected to extend into 2009.
According to Consumer Directed Market Report, the cause is a broadening of the market for HSAs offered by banks and small firms due to market demand. Initially, many banks and small firms or TPAs were expecting to develop their own sites or use large vendors. But greatly-improved HSA prototypes are now available from dedicated vendors like ConnectYourCare that offer HSA-lite products with full-service capabilities.