SEB & Everyday People to Launch Health Spending Account Mastercard® Program Across North America
SEB Administrative Services, a subsidiary of Smart Employee Benefits, an Insurtech provider of cloud-based, end-to-end IT and Benefit Processing solutions for the life and group benefits marketplace and government, is pleased to announce that it has signed a letter of intent with Everyday People Financial, a financial technology and consumer financing company, to launch a bespoke healthcare spending account program, offering a challenger product to traditional employer health spending accounts.
Healthcare spending accounts help business owners save on medical costs by turning an after-tax personal medical expense into a before-tax business expense. This plan is a smart and efficient option for the modern-day entrepreneur. It also helps the plan member minimize coverage gaps between government funded health care and other health insurance options.
The health spending account is particularly applicable to small companies and self-employed business owners. There are over 1.2M small businesses in Canada. Over 97.0% of all businesses in Canada are small businesses. In Canada, small business represents over 15.0M employees, and 2.5M gig workers. The Mastercard® Healthcare Spending Account (“HSA”) solution is unique to the Canadian marketplace.
EP and SEB are the first to introduce into the Canadian market this integrated membership-based employee healthcare spending account and credit card program. This program represents a large specialty opportunity targeting the HSA market, currently estimated at over $8 billion premium in Canada. The objective is to capture a minimum of 20% market share in the overall HSA Canadian marketplace.
Mohamad El Chayah, COO of SEB and President & CEO of SEB Administrative Services, says, “This innovative program will streamline operations, increase accuracy and boost efficiency, and offers employees a reduction of out-of-pocket burden and costs normally associated with traditional health spending accounts. Members of this HSA program are issued a spending account for health care and wellness services tied to a Mastercard®. This provides more financial flexibility in managing health care options and an improved customer experience, allowing immediate reimbursement of health care expenditures at the point of sale.”
Within the joint venture, EP will operate as the program manager and SEB will operate as the HSA program administrator and adjudicator. SEB has an established customer base of employers who use SEB’s proprietary SaaS-based benefit solutions to self-administer health benefit programs for their employees.
Barret Reykdal, CEO of EP, says, “A joint venture with SEB to offer a health spending account program for small business owners and their employees is yet another way that EP, along with one of its partners, provides people with greater financial flexibility. Giving small business employees access to a blended credit card health spending account helps fill coverage gaps, allows individuals to manage healthcare spending and direct funds according to their personal life situation. The solution provides an instant, easy-to-use, efficient method of transacting in the form of a credit card-based platform. Today, EP offers similar specialty credit payment card solutions in multiple markets. The HSA solution adds to EP’s extensive digital banking solutions portfolio.”