To date, over 100 financial institutions, including one of the nation's largest financial institutions, are leveraging the Metavante HSA solution.
Metavante, the financial technology subsidiary of Marshall & Ilsley Corporation (NYSE:MI), is a leading technology solution provider to the financial services industry.
HSAs were created by the Medicare Bill of 2003 to help individuals save for
qualified medical expenses, on a tax-free basis. Individuals covered by a high deductible health plan can establish an HSA, make regular payments, and any unspent funds from any plan year are allowed to remain in the account and earn interest tax-free. Funds distributed from HSAs are not taxed if used to pay for qualifying medical expenses.
The number of HSAs is predicted to grow from roughly 391,000 accounts this year to over 6.3 million by 2008, according to Forrester Research, Inc.(1) Additionally, the assets in these accounts are expected to grow from $282 million to $6 billion during the same timeframe.
"We've received phenomenal interest from financial institutions wanting to
meet their customers' demands for HSA accounts, from small, mid-sized organizations to large top-tier financial institutions," said Frank D'Angelo, president and chief operating officer, Metavante Payment Solutions Group. "Metavante provides all the necessary tools and infrastructure for a financial institution to grow its HSA customer base. And as more customers opt for these accounts as part of their desire for consumer-directed health care, financial institutions can reap the benefits of increased deposits, fee revenues, and interchange income, while also creating new cross sell opportunities for additional products and services."
Metavante's Healthcare Payment Solutions include a comprehensive health savings account (HSA) offering that provides everything a financial institution, health insurance company, third party administrator, or commercial business needs to offer HSAs. Services include account processing, checks and debit cards, online and phone access to account information, investment options, and regulatory reporting. Metavante's Healthcare Payment Solutions also offer medical identification cards, combination eligibility/payment cards, and the ability to access multiple benefits accounts from a single card.
In July, Metavante added to its consumer health care payment solution when it acquired MBI Benefits, Inc. (MBI) of Waltham, Mass. MBI is a leading provider of electronic payment services for employee-benefit and consumer-directed health care accounts.