By leveraging the healthcare infrastructure created by the Affordable Care Act, small businesses can get out of the middle of the relationship between insurance companies and employees while still providing a tangible healthcare benefit.
Chattanooga, Tenn. (PRWEB) May 07, 2014
TransCard, LLC, a leading payment processor, in collaboration with American Exchange, a licensed insurance broker, today announce the launch of the first new healthcare payment product enabled by enactment of the Affordable Care Act. The patent-pending Personal Health Account (PHA) provides small businesses with a lower cost alternative to group health plans and better meets the needs of their employees.
“We are excited about introducing the PHA into the marketplace at a time when companies are looking for new solutions to support their employees’ healthcare needs,” said Greg Bloh, President of TransCard. “The PHA is similar to a Flexible Spending Account (FSA) in that purchases from the account are restricted to payment of insurance premiums, co-pays and deductibles at medical providers. Contributions to the PHA are made by employers with employees having the opportunity to add additional funds through payroll withholdings.”
Delegator, an innovative business based in Chattanooga, TN, and an early adopter of the PHA is already seeing benefits of its launch. “We were looking at a 17% increase in our group rates this year when the opportunity for the PHA was presented to us,” said Andrew Scarbrough, COO. “With the PHA our costs stayed flat and premium costs went down for most of our employees.”
“The PHA will be the next big product in healthcare payments,” said Cathy Corby Parker, TransCard’s Chief Strategy Officer. “By leveraging the healthcare infrastructure created by the Affordable Care Act, small businesses can get out of the middle of the relationship between insurance companies and employees while still providing a tangible healthcare benefit.”
American Exchange is the first insurance broker to offer Personal Health Accounts. “We’re finding business clients are shocked by the increases in their group premiums and pleasantly surprised to hear they now have an alternative with the PHA,” said Andrew Hetzler, a Benefits Consultant at American Exchange. “As we consult with employees to find the insurance plan that best meets their needs, we’re finding that no two employees are alike. With small group plans it was pretty much one-size-fits-all for employees, now each employee has a choice.”
TransCard provides cloud-based prepaid solutions to financial institutions, corporations and government agencies. TransCard’s offerings include payroll and expense reimbursement cards for hundreds of corporations and payroll services companies, as well as insurance carriers and brokers. TransCard processes prepaid for the largest network of issuing banks in the U.S. For more information, contact Cathy Corby Parker.
About American Exchange
American Exchange is a call center based health insurance brokerage certified to sell on the Federal Marketplace, and direct to Private Carriers. The company provides businesses with their options on the individual market and enrolls their employees in health insurance plans which can qualify for Federal tax credits and subsidies. American Exchange healthcare advisors are state licensed and certified as exchange advisors. The company is based in Chattanooga, TN. For more information, contact Andrew Hetzler.