The prepaid card industry has been working on various ways to provide access to health care for a number of years. According to MasterCard, the U.S. consumer payments landscape is undergoing significant shifts as consumers try to regain their footing following the financial crisis. Consumers are continuing to try to control household spending, while striving to maximize value through management of their liquid assets; they are deploying payment methods more effectively and want to secure value and savings in all areas of life, especially in health care.

Financial institutions, particularly prepaid card issuers and program managers, have the opportunity to implement new strategies that enable consumers to achieve their financial goals. Cardholders and card issuers can both profit from this type of relationship. And, in the employer world, most small companies can't afford to commit to hundreds of dollars a month in health care expenses for each of their employees.

Many employers in the small business market buy benefits according to how business is going. As the Patient Protection and Affordable Care Act gets closer to full throttle, small businesses are feeling the squeeze of the uptick in costs associated with health care coverage.

Also, just this summer, according to ModernHealthcare.com, in a victory for health insurance exchange customers with lower incomes, HHS issued a final rule that allows individuals to pay their premiums with a prepaid debit card. The move allows individuals who do not have a bank account, called the “unbanked,” to pay premiums with a card they add money to that's issued by a credit card company.

The rule responds to widespread concerns that insurers would only take payment by check and credit card, while millions of lower-income Americans who will be buying coverage on the state health insurance exchanges are unbanked because they can't afford the costs associated with checking accounts and credit cards. Some insurers had said they wanted to be able to set their own payment policies. They don't necessarily like credit or prepaid debit cards because the fees they have to pay are high.

“At a minimum, for all patients in the individual market, (a qualified health plan) must accept paper checks, cashier's checks, money orders, (electronic fund transfers) and all general-purpose prepaid debit cards as methods of payment and present all payment options methods equally for a consumer to select their preferred payment method,” the 300-page rule states.

Brian Haile, a senior vice president for health care policy at tax preparer Jackson Hewitt (who lobbied HHS to require insurers to accept prepaid cards), said the ruling benefits as many as 8.5 million “unbanked” Americans. Jackson Hewitt found that 27 percent of uninsured Americans eligible for federal subsidies to buy exchange coverage under the Affordable Care Act do not have bank accounts.

One very interesting opportunity in prepaid health care is made available to employers through MasterCard. The company has rolled out a prepaid wellness card that provides access to services promoting employee engagement. With MasterCard prepaid health and wellness solutions, companies and their employees can work together to create a higher-quality health care experience. Prepaid health and wellness cards help cut administrative red tape, thereby reducing and eliminating the hassles of paperwork and check writing for cardholders. Plus companies lower administrative costs and boost not only the efficiency of plans and payments, but also employee participation in wellness programs.

There are several benefits to organizations that use their product:

• Lower administrative costs through simplified tracking of expenses and automated substantiation of eligible expenses.
• Gain control by restricting spending to places that provide medical goods and services.
• Improve employee satisfaction by increasing employee participation in pre-tax healthcare plans.
• Encourage employee participation in wellness programs to promote healthy lifestyles.

Additionally, other major companies have rolled out prepaid health cards. Aetna introduced its Dental Value Pass card earlier this year to rave reviews by the prepaid industry. Essentially, cardholders load funds onto a free card that can be purchased online as an individual consumer, or through sponsored groups like employers, associations, and other organizations. Employers can use the card as a non-HRA type HRA and fund defined contributions to pay for dental work using the Aetna Dental Access Network, and employees receive a discount for dental services with participating providers.

The average savings, according to Aetna, is 36 percent from usual and customary rates, and the card is free to the consumer or organization. A nominal load fee is charged when funds are placed on the card, and it can be used right away. The card is a big plus for anyone considering the cost of dental care.

Companies such as Careington International, a discount medical plan organization and product aggregator in North Texas, provides access to ancillary health services such as dental, vision, hearing, wellness, telemedicine, and much more to several prepaid card companies, including RushCard, which provide health savings plans to their cardholders. Even employers can load health discount services on payroll cards for their employees who may be unbanked and need access to health care.

The fit is perfect for anyone who needs savings, access, and value, including employers, individual consumers, associations and other groups. Even brokers can get in on the act by offering prepaid health cards to their clients. Blending health care and prepaid cards makes sense. Why not make it easy for patients to pay for health as they need it, and save money and time when they visit a provider? It’s time to load and go.