Metavante Corporation, the financial technology subsidiary of Marshall & Ilsley Corporation (NYSE: MI), today announced that it has expanded its Healthcare Payments Solutions division with the addition of the recently completed AdminiSource acquisition.
AdminiSource provides healthcare payment distribution services to insurance carriers and healthcare organizations.
In addition, Metavante has named John M. Reynolds as president of its Healthcare Payment Solutions division. Reynolds is a 20-year banking industry professional who previously served as senior vice president and business director for Health Benefits Services at Wells Fargo Institutional Trust Service.
In just three years' time, Metavante assembled a comprehensive suite of healthcare payment solutions to service one of the fastest-growing segments in the payments industry. Internal development built out full-service flexible spending account (FSA), health savings account (HSA) and health reimbursement arrangement (HRA) product sets. At the same time, the strategic acquisitions of Printing for Systems (PSI), MBI Benefits, Inc. and AdminiSource Corp. further expanded Metavante into consumer-directed healthcare payments by adding industry-leading technologies. Since the fall of 2005, Metavante has marketed this product set as Metavante Healthcare Payment Solutions.
"Metavante has already accomplished a strategic achievement in healthcare payments," said John Reynolds, president, Metavante Healthcare Payments. "As a result, patients, providers and third-party payers now have access to electronic payments in the healthcare arena. Metavante has connected the three P's of a traditionally disconnected healthcare payments process by leveraging existing expertise in data translation, financial transaction processing and making key acquisitions to fill in the gaps."
"The solution set of Metavante Healthcare Payments has gained early traction," said Frank D'Angelo, president and chief operating officer, Metavante Payment Solutions Group. "To date, over 120 financial institutions, including one of the nation's largest banks, are leveraging the Metavante HSA solution. In addition, 17,000 employers have chosen our benefits debit card for their employees, resulting in nearly 1.5 million cards in use and a transition from paper-based to electronic payments and information flow. What lies ahead in marketplace adoption of electronic healthcare payments and consumer-directed healthcare points to a tremendous growth opportunity for us."
Industry forecasts from DiamondCluster 1, a management consulting firm based in Chicago, indicate there will be 15 to 25 million HSA accounts holding $75 billion in assets by 2010. Analyst reports also point toward rapid expansion of benefit debit cards. According to TowerGroup 2 research, at the end of 2004, 14 percent of HSAs and FSAs came bundled with a plastic payments card. By 2010, 71 percent of all FSAs, HSAs and HRAs will be used in connection with a payments card.
Metavante Healthcare Payments offers a consumer-directed health benefits payment platform plus the country's leading employee benefits card - electronically accessing FSAs, HRAs, HSAs, transit/parking accounts and dependent care accounts. Metavante provides medical identification cards, combination eligibility/payment cards, and the ability to access multiple benefits accounts from a single card. Metavante also provides a comprehensive FSA/HSA/HRA platform that provides all the technology a financial institution, health insurance company, third-party administrator, or commercial business needs to offer these accounts. Services include account processing, trustee services, checks and debit cards, online and phone access to account information, investment options, regulatory reporting and related data translation and movement between payers, providers and consumers.
The announcement of a new president for Metavante Healthcare Payment Solutions marks the company's second organizational notice in 2006. In January, Metavante formed Metavante Image Solutions. Leading the industry by providing the world's most comprehensive, end-to-end check image and document technology solutions, the new Metavante division will include the operations of its affiliates Advanced Financial Solutions (AFS), the Endpoint Exchange Network, TREEV and VECTORsgi.