San Francisco, CA, USA
May 15, 2006

Flexible Spending Accounts, Flexible Cards?
An Examination of Prepaid Cards in the Health Care FSA Market

Table of Contents

Return to report Abstract

Executive Summary 3
Introduction 5
  Overview of Flex Accounts 5
  FSA Administrators 7
  FSA Benefits 8
  Double Paying Slows Growth 8
  Regulatory Boost 9
Health Flex Accounts And Debit Cards 11
  Card Benefits 11
  The FSA Debit Transaction 11
  Outsourcing the Card Platform 14
  Auto-Substantiation and Adjudication 15
  Card Challenges 18
The FSA Card Market 20
  The Opportunity for Debit Cards 20
  Third Party Card Providers 21
  Evolution Benefits 21
  Metavante Healthcare Payment Solutions (MBI Benefits) 23
  Motivano 24
Conclusions 26
  Projections 27
  Overall FSA Debit Card Lessons 28
Objectivity & Methodology 29
About Celent 30
 

About Celent

Celent is a research and advisory firm dedicated to helping financial institutions formulate comprehensive business and technology strategies. Celent publishes reports identifying trends and best practices in financial services technology and conducts consulting engagements for financial institutions looking to use technology to enhance existing business processes or launch new business strategies. With a team of internationally experienced analysts, Celent is uniquely positioned to offer strategic advice and market insights on a global basis. Celent is a member of the Oliver Wyman Group, which is part of Marsh & McLennan Companies [NYSE: MMC].

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