Seattle-based Array Health says it has formed a partnership with HealthEquity providing personal health accounts on Arrays e-commerce platform Array Spectrum.
The private exchange can be used by health insurers and employers to manage active and retiree groups as well as individuals within their respective health plans.
The announcement comes at a time when Health Spending Accounts continue to grow in popularity both for employers and employees. According to Devenir Research, HSA accounts, at the end of 2014, rose to nearly 14 million holding about $24 billion in assets.
That is a 25% increase year-over-year. The good news, for HSA account holders, is that an average annualized return of 12.5% was realized on HSAs over the last three years, according to the research.
The growth of HSAs also goes hand-in-hand with the growth in technology needed for the industry, something Array says their new partnership reflects as employers look for new technology to give employees ways to fund health benefits and provide a means to further save for their health expenses.
The personal health account offerings will, according to the announcement, accommodate both employer and employee contributions and provide account holders an opportunity to save money for qualified medical expenses on a pre-tax basis. Seamless Integration during the shopping experience will allow members who qualify for an eligible plan to select from a number of personal health account options and desired contribution amounts.
For insurers, Array will also provide private exchange solutions giving them the ability to deliver their own branded online exchange a strategic channel that helps them differentiate their offerings, better serve their existing customers and attract new members.
And if the trends move in the direction projected, many more employers will seek out more effective and efficient ways to provide HSAs to their employees. According to Devenir current projections show that by the end of 2017 the HSA market will exceed $40 billion in assets in about 30 million accounts.
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